Iceland Tariff 2026: Stay Compliant, Reduce Costs

Iceland Customs Duties Summary

Iceland maintains a trade environment characterized by low tariffs on industrial goods—often 0% for EEA and EFTA members—while imposing significant protectionist duties on agricultural products. Importers must navigate a structure that relies heavily on Value Added Tax (VAT) and specific excise taxes rather than just standard customs tariffs. The system adheres to the Harmonized System (HS) for classification, requiring precise documentation to determine applicable ad valorem or specific rates.

• Ad Valorem Duty: Calculated as a percentage of the CIF (Cost, Insurance, and Freight) value, this is the standard method for most non-agricultural imports.
• Specific & Compound Duties: These are levied based on physical quantity (e.g., per kilogram) or a combination of value and quantity, primarily affecting meat, dairy, and produce.
• Excise Taxes: Iceland imposes strict excise taxes on specific categories such as automobiles, hazardous substances, and alcohol, often exceeding the value of the goods.
• Processing Fees: While Iceland does not utilize the US-style MPF or HMF, importers should account for local customs processing fees and port charges upon arrival.
• Antidumping Duties: Special additional duties may be applied to specific foreign goods deemed to be sold below fair market value to protect domestic industry.