CUSTOMS DUTIES: NORWAY TO ICELAND

Customs Duties and Import Regulations: Norway to Iceland

Trade between Norway and Iceland is governed by the European Economic Area (EEA) agreement, which provides for free movement of goods between these nations. As both countries are part of the EEA framework, most goods exported from Norway to Iceland benefit from preferential treatment. However, understanding the applicable regulations, documentation requirements, and any sector-specific duties remains essential for successful customs clearance and compliance.

General Duty Rates and VAT

Iceland has significantly simplified its tariff structure in recent years. The following table outlines the general duty treatment for common product categories:

Product Category	Duty Rate	VAT Rate	Notes
Consumer Goods (Clothing, Electronics)	0%	24%	Tariffs eliminated in 2016-2017
Unprocessed Agricultural Products (EU origin)	0% or Reduced	11%	Per May 2018 EU agreement; may vary by product
Agricultural Products (Non-EU origin)	20-30%	11%	Higher rates apply to non-EU sources
Food, Books, Magazines, Necessities	Varies by HS code	11%	Reduced VAT rate applies
Electric, Hybrid, Hydrogen Vehicles	0%	0% (VAT exempt)	Exemption valid through 2023; 2024 status uncertain
Other Industrial Products	Varies by HS code	24%	Contact customs authorities for specific rates

Value Added Tax (VAT): All goods imported to Iceland are subject to VAT. The standard rate is 24 percent, with a reduced rate of 11 percent for foods, books, magazines, and other essential items.

Required Documentation

When exporting goods from Norway to Iceland, ensure the following documentation is prepared and submitted:

• Commercial Invoice (original and copies) detailing product descriptions, quantities, unit prices, and total value
• Packing List identifying contents, weights, dimensions, and packaging details
• Certificate of Origin confirming Norwegian origin (required for preferential EEA treatment)
• Bill of Lading or Air Waybill as proof of shipment
• Import License or Permit (if applicable to specific product categories)
• Health Certificates (for food, animal, or plant-based products)
• Technical Documentation and Certificates of Compliance (for electronics, machinery, or regulated products)
• Customs Declaration Form (completed by importer or customs broker)
• Proof of VAT registration (for Norwegian exporter)

Important Regulations and Restrictions

Exporters must comply with Iceland's customs regulations and trade standards:

• HS Code Classification: Iceland uses the Harmonized Commodity Description and Coding System (HS). Products must be correctly classified for duty and VAT determination.
• Prohibited and Restricted Imports: Certain items are prohibited or restricted entry into Iceland. Verify product eligibility before shipment.
• Labeling Requirements: Products must meet Icelandic labeling and marking standards, including language requirements and safety information.
• Standards Compliance: Goods must comply with applicable Icelandic and EEA standards for safety, quality, and environmental protection.
• Customs Register: The Iceland Revenue and Customs website maintains an official customs register with detailed tariff information and requirements.

Trade Agreements and Preferential Treatment

Norway and Iceland benefit from the European Economic Area (EEA) agreement, which eliminates most tariffs on industrial goods and provides preferential treatment for agricultural products. Additionally, Iceland maintains a bilateral agreement with the EU (effective May 1, 2018) concerning reduced or eliminated tariffs and increased tariff quotas on unprocessed agricultural products originating in EU member states.

As a Norwegian exporter, ensure your goods qualify for EEA preferential treatment by providing proper documentation of origin. For agricultural products, verify whether your goods benefit from the EU agreement provisions.

Additional Resources

For specific duty rates and detailed tariff information, consult the Iceland Revenue and Customs website or use the Customs Info Database tariff look-up tool available through official trade resources. For complex shipments or product-specific questions, consider engaging a customs broker or contacting Icelandic customs authorities directly.