Iceland (Lýðveldið Ísland) — Multi-Page Customs Intelligence Hub
AUDIT PASSEDSovereign Authority: Skatturinn (Iceland Revenue and Customs) • Valuation Basis: CIF (Cost + Insurance + Freight to Icelandic Port/Airport)
[💰 Layer 6: FTAs, Exemptions & Drawback] Shipping commercial goods to Iceland requires clearing Skatturinn (Iceland Revenue and Customs) via Form E1 (Aðflutningsskýrsla). Iceland has a 0 ISK commercial de minimis threshold, meaning Standard 24% Import VAT (or 11% Reduced Food/Book VAT) is assessed from the first króna on the CIF value (Cost + Insurance + Freight) plus applicable customs duties and Úrvinnslugjald recycling fees. Under Customs Act No. 88/2005 reforms, Iceland eliminated general industrial, electronics, and apparel import tariffs (0% MFN duty), but strictly enforces EEA partner agency controls including Fjarskiptastofa (RED 2014/53/EU CE mark for wireless devices) and MAST (food/veterinary/ISPM-15 wood packaging).
| Competent Customs Authority | Skatturinn (Iceland Revenue and Customs) |
|---|---|
| Official Import Declaration Form | EYÐUBLAÐ E1 / SAD — AÐFLUTNINGSSKÝRSLA (EYÐUBLAÐ E1 — SINGLE ADMINISTRATIVE DOCUMENT) |
| Customs Valuation Basis & FX | CIF (Cost + Insurance + Freight to Icelandic Port/Airport) • FX Authority: Seðlabanki Íslands / Skatturinn Official Tollgengi |
| De Minimis Duty-Free Threshold | 0 ISK (Icelandic Customs Law No. 88/2005 & VAT Act No. 50/1988) |
| Outbound Export Filing Mandate | Iceland Outbound Export Mandate: Skatturinn Form E2 (Útflutningsskýrsla) |
| Effective Date | Tariff / Legal Code | Executive Order / Measure | Statutory Rule & Exemptions |
|---|---|---|---|
| 2025-03-12 | 9903.80.01 / 9903.85.01 | U.S. Section 232 Global Steel & Aluminum 25% Tariff (All Country Quotas/Exemptions Terminated) | Restores a uniform 25% global Section 232 tariff on both Steel (Ch. 72–73) and Aluminum (Ch. 76, raised from 10% to 25%) and derivatives from all countries, terminating prior country exemptions and tariff-rate quotas. |
| 2025-04-03 | 9903.94.01 | U.S. Section 232 Global Passenger Vehicles & Light Trucks 25% Tariff | Assesses a 25% Section 232 national-security tariff on imported automobiles and specified automotive parts (with USMCA U.S.-content deduction mechanisms and classic >=25-year exemptions under Chapter 99). |
| 2025-04-05 | 9903.01.25 (Universal Baseline) / 9903.01.28 (US Content / Annex II Exempt) | U.S. IEEPA Universal Baseline (10%) & Country-Specific Reciprocal Tariff Schedule | Establishes a 10% universal baseline IEEPA duty (HTS 9903.01.25) on global imports into the United States effective April 5, 2025, with statutory exemptions for Annex II critical goods (pharmaceuticals, semiconductors, critical minerals, energy), Section 232 covered articles (which do not double-stack), U.S. content >=20% (9903.01.34), and Chapter 98 entries. |
📖 View Frequently Asked Customs Questions & Sovereign Statutory Citations (3 Q&As)
Verified Answer: Iceland has a 0 ISK commercial de minimis threshold under Customs Act No. 88/2005 and VAT Act No. 50/1988. Every commercial shipment is subject to 24% standard Import VAT (VSK) or 11% reduced VAT (for qualifying food, books, and media) calculated on the CIF value plus customs duties and per-kg recycling fees.
Verified Answer: No. Unlike the European Union (which charges up to 4.5%–14% duty on electronics and apparel), Iceland is outside the EU Customs Union and abolished general tariffs on industrial goods, electronics (e.g., HS 8518.22 speakers, HS 8507.60 batteries), and clothing (0% MFN duty). However, because Iceland is in the European Economic Area (EEA), wireless and electrical goods must carry a valid European CE mark and EEA Declaration of Conformity for Fjarskiptastofa and HMS clearance.
Verified Answer: Three verified strategies reduce Icelandic landed costs: (1) Include the buyer's 10-digit Kennitala and VSK registration number on Box 8 of Skatturinn Form E1 to reclaim 100% of the 24% Import VAT as input tax; (2) Itemize net lithium-ion battery weight separately from product enclosure weight on the commercial invoice to avoid paying the 145 ISK/kg Úrvinnslugjald battery fee on the housing weight; (3) Itemize post-arrival domestic Icelandic inland trucking separately from international freight so it is excluded from the 24% CIF VAT base.
Free Trade Agreements (FTAs), Tariff Engineering & Duty Refund Rules
Although the US and Iceland do not have a bilateral FTA, Iceland belongs to the EEA and EFTA (31 FTAs covering 42+ countries) AND has a direct bilateral Iceland–China FTA and Iceland–UK FTA. Furthermore, Iceland abolished general industrial/electronics/apparel tariffs!
Verified Money-Saving Rules Active in This Hub
Many US shippers mistakenly assume EU's 4.5% speaker tariff applies to Iceland. Because Iceland is outside the EU Customs Union, general duty on HS 8518.22 is 0%—saving $450 per $10,000 shipment.
By entering the buyer's Icelandic VSK registration number on Box 8 of Form E1, the 24% import VAT ($2,400 on a $10k shipment) is 100% reclaimable as input VAT rather than becoming a permanent sunk cost.
If you don't list the net battery weight separately from the speaker housing weight, customs assesses the higher battery recycling fee on the entire product weight. Separating weights saves up to 75% on Úrvinnslugjald fees.
Because Iceland charges 24% VAT on international freight (CIF), excluding post-import domestic Icelandic inland delivery charges (showing Faxaflóahafnir / Reykjavík port arrival cost separately) prevents paying 24% import VAT on domestic trucking.
Correctly classifying eligible nutritional/food preparations under the 11% VSK schedule instead of the default 24% rate reduces upfront border tax cash outlay by 13 percentage points ($1,300 per $10,000 shipment).
Monitored FTA & Duty-Reduction Feeds
- IS-L4-01 — EEA Agreement Origin Protocol 4 & Pan-Euro-Mediterranean (PEM) Diagonal CumulationOfficial Schedule →Authority: EFTA / Skatturinn • Citation: EEA Protocol 4 (EUR.1 / Invoice Declaration)
- IS-L4-02 — EFTA Free Trade Network (31 FTAs covering 42+ Countries: Canada, Mexico, Korea, India, Singapore, etc.)Official Schedule →Authority: EFTA Secretariat • Citation: EFTA Preferential Origin Protocols
- IS-L4-03 — Bilateral FTAs: Iceland–China FTA, Iceland–UK FTA & Hoyvík Agreement (Faroe Islands)Official Schedule →Authority: Ministry for Foreign Affairs / Skatturinn • Citation: Iceland-China FTA (2014) & IS-UK FTA