Iceland is a European country that is somewhat isolated from the rest of the continent. This is due to its location on an island in the ocean, northwest of the rest of the continent. In terms of trade, it is worth remembering that although Iceland is not a member of the European Union, it does belong to the European Economic Area. This is a great simplification for all export procedures. Nevertheless, important regulations of this country still need to be taken into account. What are the customs procedures for exporting to Iceland and is it worth exporting food there at all? We invite you to read!

The Icelandic market - a few words

Although Iceland is neither a large nor a densely populated country (368,590 inhabitants in 2020), the market is very open and receptive to various products. This also applies (and even mainly) to the food market. The expectations of Icelandic consumers are high, and the country, due to natural conditions, is not able to provide all goods on its own. Therefore, most of the key food products are imported by the country from foreign partners. Most food to Iceland comes from the European Union, the United States and Asia.

The scale of Iceland's total imports is significant (around 9%) and shows an upward trend. The largest part of imported food comes from the European Union - mostly products from the food and beverage sector, worth around EUR 295 million per year. Food imports from the closest "neighbors" - i.e. EU countries - also show an upward trend. Iceland imports from Europe products such as baby food, flour, dairy products, fresh and dried fruit, fruit preserves, vegetables, nuts and beef. The Icelandic market is also showing increasing interest in European alcohol products.

Facilitations for exporters

Entrepreneurs from the European Union are in a relatively comfortable situation when it comes to exporting to Iceland. This is due to the agreement signed in September 2015 between Iceland and the European Union. This agreement entered into force in 2018. On the basis of this agreement, the EU gained increased access to the Icelandic market for agricultural and food products and protection of EU regional products in Iceland.

Why is this agreement so beneficial for entrepreneurs from the European Community? It allows duty-free market access to the Icelandic market for over 95% of EU agri-food products. Most crucial was facilitating the export of goods such as beef, pork, poultry and cheese. The Icelandic market is extremely receptive in terms of them, and previously export procedures made it partly difficult to send their products to this Nordic country.

The agreement also makes it easier for Icelandic producers to export their products to the European Union. Most often these are goods from the dairy sector, seaweed, sheep meat, leather and fur products and other food preparations. Only Icelandic yoghurts and ice cream are excluded from the trade liberalization agreement.

Iceland - how is it with this food export?

While the 2015 agreement made it much easier to export food to Iceland, customs procedures still need to be passed. It is always recommended to start by contacting the Icelandic authorities. Although the general regulations seem clear, individual restrictions on the export of certain goods and food are sometimes introduced on the island.

It is also possible to use the intermediation of companies that help in organizing exports to Iceland. Companies providing such services are usually well versed in the current customs situation, and their services allow for smooth and effective passage of all required procedures.

And when do you not have to pay customs duties? This is only the case where a small quantity of goods has been imported into Iceland by an individual. This is exactly about:

- food up to 3 kg with a purchase value not exceeding the equivalent of PLN 900;
- alcoholic beverages in the following combinations:

  • 1 liter of alcohol with an alcoholic strength of more than 21% and 0.75 liters of wine and 3 liters of beer, or
  • 1 liter of alcohol with an alcoholic strength of more than 21% and 6 liters of beer, or
  • 1.5 liters of wine and 12 liters of beer, or
  • 3 liters of wine and 6 liters of beer, or
  • 18 liters of beer.

- 200 cigarettes or 250 g of other tobacco products.

Where does Iceland import the most from?

Iceland imports the most food from Norway - in 2019 the total scale of imports from this country amounted to 54,385 thousand. US dollars. The second place among exporters was taken by Great Britain (USD 48,518 thousand) and the Netherlands (USD 41,220 thousand). Other European countries were also among the leaders: Denmark, Sweden, Germany, Belgium and Italy. The only non-European country in the top 10 exporters to Iceland is the United States.

Poland was ranked 14th in the list of the largest food exporters to Iceland. In 2019, food products with a total value of PLN 8,759 thousand went from Poland to Iceland. US dollars. On the one hand, this does not seem like much, on the other hand, Icelandic purchasing power must be taken into account. There is also no doubt that despite the small population, the Icelandic market is still receptive and open to the appearance of new products on the market.