Iceland - Import TariffsIceland - Import Tariffs
Iceland uses the Harmonized Commodity Description and Coding System (HS), which indicates the duty that should be applied and whether an import license or permit is required for the commodity in question. Iceland also uses the ISO 9000, a family of standards for quality management systems. ISO 9000 is maintained by the International Organization for Standardization and is administered by accreditation and certification bodies. Since joining the European Economic Area in 1994, Iceland has adopted European product standards and regulations in most areas. Implementation of these new standards, and the accompanying requirement for use of the CE marking to certify that a product has met EU consumer safety, health or environmental requirements, has created occasional difficulties for importers of some U.S.-manufactured goods. Nonetheless, it is still possible to import U.S.-standard products of many kinds into Iceland, and Icelandic regulators seek to be flexible where possible. However, the Embassy has noticed an increase in these types of regulatory barriers as Icelandic regulations become more 'European.’ Information about the CE mark is available from U.S. Department of Commerce Export Assistance Centers. Information is also available at the Icelandic Standards Office; the national standards body of Iceland (www.stadlar.is).
To sell products on the EU market as well as in Norway, Liechtenstein and Iceland, U.S. exporters are required to apply CE marking whenever their product is covered by specific product legislation. CE marking legislation offers manufacturers a number of choices and requires decisions to determine which safety/health concerns need to be addressed, which conformity assessment module is best suited to the manufacturing process, and whether or not to use EU-wide harmonized standards. More information is in the “Product Certification” section, below.
To comply with GATT and WTO-agreements, the Minister of Agriculture issues quotas for import of various meat and dairy products every year, that are exempt from general tariffs. There is some flexibility in how the minister can impose tariffs on the products imported under the WTO-quota. For example, in 1995-2008, specific per-pound tariffs were issued that were considerably lower than the general tariffs. 2009 marked a change in policy, as the Minister issued ad valorem tariffs that were higher than the general quotas. Local importers challenged this, and it was later revoked after a local importer won a lawsuit against the Icelandic Government. Quotas for importation of 650 tons of meat and 100 tons of cheese from the EU are also issued every year. Because of high demand, the price of quotas determined at auctions has often exceeded half the general tariffs. On May 1, 2018, an agreement came into force between Iceland and the EU concerning reduced or eliminated tariffs, and increased tariff quotas on unprocessed agricultural products. As part of this agreement, Iceland drops tariffs of more than 340 categories of unprocessed agricultural products, and reduces tariffs of more than 20 categories. This will leave U.S. agricultural products exported to Iceland up to 30% more expensive than products from the EU.
Iceland has eliminated tariffs on consumer goods including clothing and electronics, and on January 1, 2017, tariffs on dozens of agricultural products from the EU were eliminated or reduced. Automobiles are subject to duties based on carbon emissions, with zero emission cars being duty-free. There are no special taxes applicable to trade in services. Most goods imported to Iceland are subject to customs duty and also a value-added-tax (VAT). The standard VAT rate is 24%, with a reduced rate of 11% generally applying to heating costs, printed matter, restaurant meals, hotel stays, and most food.
The most up-to-date “Customs Tariffs”-handbook, listing tariffs on all products, is available at the Directorate of Customs’ website (www.tollur.is) under “Publications”. It is based on the Harmonized Commodity Description and Coding System (HS).
In addition to tariffs, excise duties are imposed on some products.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
To sell products on the EU market as well as in Norway, Liechtenstein and Iceland, U.S. exporters are required to apply CE marking whenever their product is covered by specific product legislation. CE marking legislation offers manufacturers a number of choices and requires decisions to determine which safety/health concerns need to be addressed, which conformity assessment module is best suited to the manufacturing process, and whether or not to use EU-wide harmonized standards. More information is in the “Product Certification” section, below.
To comply with GATT and WTO-agreements, the Minister of Agriculture issues quotas for import of various meat and dairy products every year, that are exempt from general tariffs. There is some flexibility in how the minister can impose tariffs on the products imported under the WTO-quota. For example, in 1995-2008, specific per-pound tariffs were issued that were considerably lower than the general tariffs. 2009 marked a change in policy, as the Minister issued ad valorem tariffs that were higher than the general quotas. Local importers challenged this, and it was later revoked after a local importer won a lawsuit against the Icelandic Government. Quotas for importation of 650 tons of meat and 100 tons of cheese from the EU are also issued every year. Because of high demand, the price of quotas determined at auctions has often exceeded half the general tariffs. On May 1, 2018, an agreement came into force between Iceland and the EU concerning reduced or eliminated tariffs, and increased tariff quotas on unprocessed agricultural products. As part of this agreement, Iceland drops tariffs of more than 340 categories of unprocessed agricultural products, and reduces tariffs of more than 20 categories. This will leave U.S. agricultural products exported to Iceland up to 30% more expensive than products from the EU.
Iceland has eliminated tariffs on consumer goods including clothing and electronics, and on January 1, 2017, tariffs on dozens of agricultural products from the EU were eliminated or reduced. Automobiles are subject to duties based on carbon emissions, with zero emission cars being duty-free. There are no special taxes applicable to trade in services. Most goods imported to Iceland are subject to customs duty and also a value-added-tax (VAT). The standard VAT rate is 24%, with a reduced rate of 11% generally applying to heating costs, printed matter, restaurant meals, hotel stays, and most food.
The most up-to-date “Customs Tariffs”-handbook, listing tariffs on all products, is available at the Directorate of Customs’ website (www.tollur.is) under “Publications”. It is based on the Harmonized Commodity Description and Coding System (HS).
In addition to tariffs, excise duties are imposed on some products.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.