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Import and Export to Iceland

Iceland is a picturesque paradise in the North Atlantic Ocean, occupied by a high-tech market. With TecEx DDP shipping, you can access its opportunities to import gaming products, tech gadgets, and data center equipment or colocation facilities.

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Iceland

Exporting and Importing To Iceland

According to the OEC, while some of Iceland’s main exports include fish fillets and non-filleted fresh fish, its main imports include tech goods like cars, carbon-based electronics, planes, and spacecraft. Iceland’s economy consists of three key sectors, namely “tourism, fishing, and aluminum smelting.” 

 

While Iceland’s imports are subject to 24% VAT, it 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

393,349

Biggest Industry By Export

Tourism-Related Services

Capital Cities

Reykjavík

Biggest Industry by Import

Industrial Supplies

Iceland Data Centers, Colocation, and Digital Economy

In February 2024, Iceland’s internet penetration was sitting at 99%. Iceland’s citizens are very tech-savvy and eager to use the latest technology. While the country 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, according to the International Trade Administration (ITA), the data center industry in Iceland has “room for growth” because it is pretty new. This and incoming data center trends generate opportunities for importers to supply relevant 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. 30% of Iceland’s electricity comes from geothermal energy, while the weather enables natural cooling that saves data centers up to 39% of energy consumption and can reduce a company’s carbon footprint. This also reduces the need to import equipment like data center cooling.

Iceland benefits from multiple high-bandwidth undersea submarine cables, connecting it to the Faroe Islands, Scotland, Denmark, Ireland, Greenland, and Canada. These cables keep Iceland’s data centers and cloud deployments well-connected to locations like North America and Europe with low latency.

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Iceland’s Free Trade Agreements

Iceland has a range of Free Trade Agreements (FTAs) from which importers and exporters can benefit. These include:

  • The EFTA Convention enables free trade between Iceland, Liechtenstein, Norway, and Switzerland,
  • The EFTA states have established FTAs with other locations like Mexico, Singapore, and other European countries,
  • Iceland is a member of the European Economic Area (EEA), enabling preferential treatment for trade between the EFTA members and EU member states,
  • Denmark, Greenland, and Iceland have a trade agreement that allows tariff preferences for certain imports,
  • China and Iceland have an agreement for tariff-free trade of a range of goods, and
  • The Faroe Islands have an FTA with Iceland.

Delivery Duty Paid (DDP) Shipping to Iceland

As Iceland’s population is relatively small, it’s ideal to import and distribute goods with a company that has a local presence and understands 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 Iceland customs. From getting your ATA Carnet to exporting your goods on time, we can optimize your temporary imports.

Challenges of Importing To Iceland

Due to its location, shipment logistics to Iceland can be expensive and time-consuming. While air freight is reliable and available, it is more costly than sea freight (which is less frequently available).

 

Additionally, Iceland is a geothermally active location with approximately 30 active volcanoes. This means that supply chain risk management and logistics details like drayage require meticulous attention to avoid risks of volcanic eruptions, which TecEx can help with. 

 

Iceland uses HS codes for its customs register. These are vital for tech importers to understand, as goods with HS code 851762 require an import license. This covers communication items other than telephone sets or base stations. Iceland’s customs will likely delay or confiscate your goods without an import license.

Exporting and Importing To Iceland TecEx

Europe

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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 Rules of Origin to confirm a shipment’s Country of Origin and determine whether they qualify for preferential tariff treatment.

Iceland Import License

Specific telecommunications equipment requires an import license from Iceland’s Post and Telecom Administration. TecEx can assist you in obtaining this – but only goods with a CE certificate can get a license.

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. Although obtaining this number can be time-consuming, TecEx can help you acquire it. 

CE Certificate

A CE certificate certifies that a product conforms to the EU’s safety, health, and environmental requirements.

Certificate of Origin (COO)

If your shipment qualifies for Free Trade Agreements, you must present a COO to request preferential customs treatment.

Your global trade solution for Iceland