Europe
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Import and Export to Iceland
Iceland’s international trade compliance is heavily influenced by the EEA. It adopts most EU customs and environmental mandates while maintaining national requirements for telecommunication and electrical safety. Clearing customs becomes complex without an experienced IOR as a partner.
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
Exporting and Importing To Iceland
While Iceland’s imports are subject to 24% VAT, it has removed tariffs from imported electronics. 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, and Digital Economy
Iceland’s citizens are very tech-savvy and eager to use the latest technology. In February 2024, the country’s internet penetration was sitting 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 popular in Iceland.
Additionally, because the data center industry in Iceland is still relatively new, it has room for growth. This, along with incoming data center trends, creates opportunities for importers to supply relevant data center equipment and software.
Iceland is a secure and sustainable location for data centers and colocation facilities, with an ideal intersection 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 also reduces the need to import equipment such as data center cooling systems.
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.
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, so accuracy is crucial, 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.
The Post and Telecom Administration (PFS) 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 for sustainable e-waste processing.
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, which will take full effect in 2027.
Additionally, due to Iceland’s geothermally active location, supply chain risk management and logistics details like drayage require meticulous attention to avoid risks of volcanic eruptions, which TecEx can help with.
Top Countries Trading with Iceland
Europe
Germany
Europe
Norway
Delivery Duty Paid (DDP) Shipping to Iceland
As Iceland’s population is relatively small, it’s ideal to import and distribute goods through a company with a local presence and an understanding of Icelandic etiquette. With the TecEx in-country team, we can handle your shipment with our door-to-door DDP shipping solution. From pre-shipping preparations like acquiring import licenses and classifying goods to arranging your logistics to last-mile delivery – TecEx has your shipment covered.
TecEx specializes in more than just compliantly importing data center equipment. 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 can fulfill your logistics project management needs from pick-up to final delivery and even arrange to install your equipment at its final destination. Our seamless solution will streamline your colocation in Iceland, with all financial and legal risks placed on us.
TecEx can also assist with temporary imports to Iceland. Whether you need temporary entry to Iceland to test your tech in new markets, exhibit your innovations at conferences, or repair your exported tech goods under your RMA, we can ensure your temporary importation complies with Icelandic customs. From getting your ATA Carnet to exporting your goods on time, we can optimize your temporary imports.
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 To Import 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 Iceland’s PFS. 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.
EORI Number Iceland
An Economic Operator Registration and Identification (EORI) number is critical for non-EU companies to export and import to members of the EEA.
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.
