Europe
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Importing and Exporting to Iceland
Iceland’s international trade compliance is heavily influenced by the European Economic Area (EEA). It adopts most EU customs and environmental mandates while maintaining national requirements for telecommunications and electrical safety, making clearance of tech goods complex without an IOR.
Tax
Up to 24%
Duties
0
Lead Times
1-2 Weeks
Restricted Items
N/A
Best Carrier Option
Courier or Freight Forwarder
Non-Working Days
Saturday, Sunday, and Public Holidays
Prominent Languages
Icelandic
Iceland’s Growing Tech Industry
While Iceland’s imports are subject to 24% VAT, tariffs on imported electronics have been removed. This, along with its range of Free Trade Agreements, ideal location, tech-savvy citizens, and digitizing government, makes Iceland a growing tech and data center hub.
Population
0.4 M
Biggest Industry By Export
Tourism-Related Services
Capital Cities
Reykjavík
Biggest Industry by Import
Industrial Supplies
Iceland Data Centers, Colocation in Iceland, and Digital Economy
Iceland’s citizens are tech-savvy and eager to use the latest technology, where the country’s current internet penetration sits at 99%.While Iceland is supplied with software and hardware from local startups, local innovators, and foreign companies, there are opportunities for tech importers. This is especially true for US tech, which is becoming increasingly popular.
Iceland is also becoming a data center hub, offering a secure, sustainable location for data centers and colocation facilities, with an ideal blend of cold weather, clean energy sources, and cost-effective electricity. The country’s weather enables natural cooling, helping data centers reduce energy consumption by up to 39% and minimizing a company’s carbon footprint. This, along with emerging data center trends, creates opportunities for importers to supply colocation equipment in Iceland.
Iceland benefits from multiple high-bandwidth undersea submarine cables. These cables keep Iceland’s data centers and cloud deployments well connected to locations such as North America and Europe, with low latency, and directly connect to the Faroe Islands, Scotland, Denmark, Ireland, Greenland, and Canada.
However, even with a local entity, Icelandic customs can physically inspect a shipment to verify the customs declarations. This puts sensitive AI gear at high risk of costly damage and can delay shipment clearance, upending an importer’s entire project timeline.
Importing Mission-Critical AI Equipment into Iceland
AI hardware shipments carry high value, technical sensitivity, and tight deployment timelines. Any delay at customs can disrupt an entire rollout.
TecEx managed the import of mission-critical AI equipment into Iceland, overseeing compliance, documentation, and logistics from origin to delivery. The shipment arrived on schedule and was fully compliant, with no delays at the border.
White-Glove Delivery of Liquid-Cooled GB200s from the Netherlands to Iceland
Liquid-cooled server racks are heavy, sensitive to handling, and unsuited to standard freight. Getting them from the Netherlands to a data center in Iceland required a different approach.
TecEx acted as the Importer of Record and built a custom roll-on/roll-off ferry and air-suspension truck route to safely move the racks, with full compliance from origin to delivery.
Challenges of Importing To Iceland
Full Integration with ICS2
Iceland has implemented the Import Control System 2 (ICS2), a pre-arrival security and safety system that applies to all goods entering or transiting the nation.
ICS2 requirements include detailed data, such as a 6-digit HS Code for each shipment item, and a filed Entry Summary Declaration (ENS) before goods are loaded onto the cargo vessel.
Incomplete or incorrect details will now result in an immediate “Do Not Load” message from Icelandic customs; accuracy is therefore critical, especially for time-sensitive tech components.
CBAM
The Carbon Border Adjustment Mechanism (CBAM) has moved from simple reporting to a financial obligation.
Being an authorized CBAM Declarant is now required if you import tech hardware that contains significant amounts of steel or aluminum. This includes server racks, industrial enclosures, and specialized cooling units.
CBAM Certificates are now also required and must be purchased to cover the embedded carbon emissions of tech products.
Mandatory Telecommunications Permits
Iceland maintains unique national restrictions on communication devices that go beyond the EU CE marking.
Fjarskiptastofa (The Electronic Communications Office of Iceland) requires specific import permits for radio and telecom devices. Satellite-linked and 5G IoT devices also experience extra scrutiny from customs.
To avoid clearance blocks, non-resident importers need to ensure their in-country partner has a valid Kennitala and is VAT-registered, especially for electronic communications equipment.
E-Waste and Sustainability
With stricter producer responsibilities entering the fray, such as per-capita e-waste generation reporting, Iceland is leveraging geothermal energy to process e-waste sustainably.
In line with EU battery regulations, if tech shipments include industrial or EV-scale batteries, importers must begin documenting the “Battery Passport” data for customs purposes. This will take full effect in 2027.
Navigating Iceland’s Unique Logistics Landscape
Iceland’s remote location means air freight isn’t always a suitable option for oversized or fragile cargo. TecEx takes this into account by using roll-on/roll-off ferries paired with air-suspension and temperature-controlled trucks, keeping equipment secure and climate-protected from port to destination.
Iceland’s geothermal activity adds another layer of risk: volcanic eruptions can disrupt logistics, drayage, and route planning with little warning. TecEx builds this into every shipment plan, with contingency routes and flexible scheduling in place.
Top Countries Trading with Iceland
Europe
Germany
Europe
Norway
Delivery Duty Paid (DDP) Shipping to Iceland
With the TecEx in-country team, we handle your shipment door-to-door, from import licenses and goods classification to last-mile delivery.
We offer 110% Liability Cover, optimized shipping routes with strategic warehousing, and tax efficiency to maximize your profitability. With TecEx DDP shipping to Iceland, we manage your project from pickup to final delivery, streamlining your colocation every step of the way.
AI Hardware, Handled Like Gold
Importing cutting-edge AI equipment? We specialize in transporting mission-critical, high-value technology with full-service precision and care. From fragile components to sensitive systems, our white-glove control tower solution ensures your shipments arrive safely, compliantly, and on time—no matter the destination.
Compliance Regulations for Importing to Iceland
Iceland GSP
Iceland is one of 15 countries that grant GSP (Generalized System Preferences). This creates a trading environment with duty-free market access for developing countries to import to developed countries. Iceland GSP uses a Form A Certificate issued by the Customs Houses. This enforces the Rules of Origin to confirm a shipment’s Country of Origin and determine whether it qualifies for preferential tariff treatment.
Furthermore, if your shipment qualifies for free trade agreements, you must present a Certificate of Origin to request preferential customs treatment.
Iceland Import License
Specific telecommunications equipment requires an import license from Fjarskiptastofa (The Electronic Communications Office of Iceland). TecEx can assist in obtaining this, but only goods with a CE certificate can get a license.
A CE certificate certifies that a product conforms to the EU’s safety, health, and environmental requirements.
Identification Number
While Iceland aligns with EEA customs principles, standard EU EORI numbers are not directly recognized by Icelandic Customs without a local tax registration. Non-resident importers must partner with a licensed Importer of Record holding an active Kennitala (a unique identification number) to clear goods through customs.
Iceland’s Free Trade Agreements
Iceland has a range of Free Trade Agreements (FTAs) from which importers and exporters can benefit.
The EFTA Convention establishes a free trade area among Iceland, Liechtenstein, Norway, and Switzerland. The EFTA states have established FTAs with other locations like Mexico, Singapore, and other European countries.
China and Iceland have an agreement for tariff-free trade of a range of goods.
Need Tech Imports to Iceland?
From pre-shipment preparations like obtaining import licenses and classifying goods to arranging logistics to last-mile delivery, TecEx has your shipment covered.
Reach out today for a tailored import/export solution to Iceland.
