Iceland Customs Import and Export Policy

This article introduces Iceland's customs import and export policies. It allows readers to learn about Iceland's customs import and export policies, which is helpful for choosing freight methods.

Customs Management Regulations

The law governing customs management in Iceland is the Customs Act (No.88/2005), which specifically stipulates the duties and management of customs, the obligation to pay tariffs, tariff classification, taxable items and exemptions, declaration procedures, import and export supervision, and penalties for illegal acts. Goods exported from Iceland are usually duty-free, that is, no tariffs or other export fees are levied on exported goods. Ad valorem tax applies to imported goods.

Except for restricted imports such as live animals, some animal and plant products, and arms, the customs generally does not check import permit documents. Imported products must be declared to the customs before entering the country and released after inspection.

Iceland's tax collection and management system is very strict, and the interpretation and implementation of its tax policies are the responsibility of the National Tax Service under the Ministry of Finance. The entire tax collection and management system consists of the National Tax Service, the National Tax Commission, the Customs and other departments. In addition, Iceland has signed double taxation avoidance agreements with 44 countries, which are also part of its tax system.

The main laws related to taxation are: the Withholding Tax Act, the Income Tax Act, the Value Added Tax Act, and the Customs Act. All taxation and payment activities of government departments, enterprises and individuals should be within the scope of the law. Every year, the tax collection and administration department issues tax guidance materials and tax forms to enterprises and individuals, and is responsible for calculating tax amounts and financial auditing of taxpayers. The latter pay taxes to local banks or customs in accordance with relevant regulations. All tax payments are received and supervised by the customs department.