CUSTOMS DUTIES: AFGHANISTAN TO ICELAND

Overview of Customs Duties: Afghanistan to Iceland

Trade between Afghanistan and Iceland is governed by Iceland's customs regulations, which are based on the Harmonized Commodity Description and Coding System (HS). As an island nation and member of the European Economic Area, Iceland maintains specific import requirements and tariff structures for goods entering its territory. Exporters from Afghanistan should be aware that Iceland has significantly reduced tariffs on many consumer goods in recent years, though agricultural products and certain other categories may still face duties. All goods imported into Iceland are subject to Value Added Tax (VAT), which is a critical consideration for pricing and total landed costs.

General Duty Rates and VAT

Iceland's tariff system is comprehensive and product-specific. The following table outlines general categories and applicable taxes:

Product Category	Customs Duty Rate	VAT Rate	Notes
Consumer Goods (Clothing, Electronics)	0%	24%	Tariffs eliminated in 2016-2017
Agricultural Products (Non-EU Origin)	20-30%	11%	Higher than EU rates due to 2018 EU agreement
Foods, Books, Magazines, Necessities	Varies by HS code	11%	Reduced VAT rate applies
Electric, Hybrid, Hydrogen Vehicles	Varies by HS code	0% (VAT exempt)	Exemption valid through 2023; status for 2024+ unclear
Other Products	Varies by HS code	24%	Contact experts for specific classifications

For precise duty rates on specific products, exporters should consult the Iceland Revenue and Customs website or use the Customs Info Database tariff look-up tool available on trade.gov (free registration required).

Required Documentation

• Commercial Invoice - detailing product descriptions, quantities, unit prices, and total value
• Packing List - specifying contents, weights, and dimensions of each shipment
• Bill of Lading or Air Waybill - proof of shipment and carrier information
• Certificate of Origin - documenting the country of origin (Afghanistan)
• Import License or Permit - if required for specific product categories
• Product Specifications and Technical Data - for electronics, machinery, or specialized goods
• Health and Safety Certificates - if applicable to the product type
• Customs Declaration Form - completed according to Icelandic customs requirements

Important Regulations

Value Added Tax (VAT): All imported goods are subject to Iceland's VAT system. The standard rate is 24 percent, with reduced rates of 11 percent for foods, books, magazines, and other necessities. This tax is calculated on the customs value plus any applicable duties.

Prohibited and Restricted Imports: Certain goods may be prohibited or restricted from entering Iceland. Exporters must verify that their products comply with Icelandic import regulations before shipment. Restricted items typically include hazardous materials, certain food products, and items requiring special licensing.

Customs Classification: All goods must be properly classified according to the HS code system. Misclassification can result in delays, penalties, or goods being held at customs. It is advisable to obtain pre-classification confirmation from Icelandic customs authorities.

Trade Agreements

EU Trade Agreement: Iceland maintains a trade agreement with the European Union that came into force on May 1, 2018. This agreement provides reduced or eliminated tariffs on unprocessed agricultural products from EU member states and increased tariff quotas. As Afghanistan is not part of this agreement, Afghan agricultural exports face higher tariffs (20-30 percent) compared to EU competitors, making them up to 30 percent more expensive in the Icelandic market.

Exporters from Afghanistan should be aware of this competitive disadvantage and consider whether their products offer sufficient differentiation or value propositions to overcome the tariff differential. For current information on trade agreements and any potential new arrangements, consult the Iceland Revenue and Customs website or contact the U.S. Commercial Service for updated guidance.