Reaching the Consumers | Distributing a Product | Market Access Procedures | Organizing Goods Transport | Identifying a Supplier

Reaching the Consumers

Marketing Opportunities

Consumer Behavior: Icelanders have a high purchasing power. But, because of the financial crisis, Icelanders' behavior might change a lot in the next year. We already see some changes in Icelanders behavior: they started buying less. But, usually, Icelanders shop in supermarkets.

Consumer Profile and Purchasing Power: Icelanders are generally well educated, with sophisticated tastes and a liking for American consumer goods. The Icelandic lifestyle is similar in many ways to that in the U.S.

Consumers Associations: NS , National consumers association

Main Advertising Agencies: Federation of the 7 largest agencies in Iceland

Distributing a Product

Market Shares: Hagar, the biggest retailer is an Icelandic corporation of Baugur Group. Hagar also owns retailer and wholesale companies in Iceland, Sweden and Denmark.
Organizations in the Retail Sector: Federation of trade and services

Market Access Procedures

Main International Economic Cooperation

Iceland is a member of the European Economic Area (EEA) Agreement.

The country has signed a large number of multilateral an bilateral agreements.

Non Tariff Barriers

Iceland enjoys some of the strongest economic freedoms among all countries Nevertheless, Iceland is very protectionist as regards to the import of farm products and licenses as well as state monopolies of imports (undergoing a dismantling). Some plant products such as potatoes and flowers are subject to seasonal limitations.

Customs Duties and Taxes on Imports

Iceland implements high tariffs on agricultural products in order to protect the domestic agricultural sector. Tariffs on certain varieties of vegetables, e.g. tomatoes, cucumbers and bell peppers are significantly higher during the growing season to protect domestic greenhouse producers. Meat and dairy products, and potatoes are also protected by substantial duties. Animal feed can carry tariffs up to 55%.
Visit the Directorate of Customs website.

Customs Classification

Iceland applies the Harmonised Customs System of codification and description of the goods. Customs duties are calculated ad valorem (and apply only to farm products of EU member countries). There is no exchange control on the settlement of imported goods. The customs policy is enforced by the Directorate of Customs.

Import Procedures

Required documents are listed below:

- Bill of lading

- Certificate of origin

- Cargo release order

- Commercial invoice

- Customs import declaration

- Packing list

Importing Samples

Samples may be imported without paying any tax if their value is not high, and they cannot be sold or used. However, samples must be declared at Customs on arrival in the country. To import samples, you must fill in an ATA carnet, a document that facilitates Customs procedures.

For Further Information: The directorate of Customs

Learn more about Traders, Agents in Iceland on Globaltrade.net, the Directory for International Trade Services.

Organizing Goods Transport

Main Useful Means of Transport: Coastal sea travel is reserved only for transportation of goods and even so, it is giving way to transportation by trucks. Transportation of goods got almost completely off the sea and on the roads when Iceland's shipping companies quit their scheduled cargo-ship transportation around Iceland from Reykjavik and emphasized on truck transportation of goods.
Ports: Ports of Iceland
Airports: Keflavik airport
Sea Transport Organizations: Icelandic Maritime Administration
Air Transport Organizations: Icelandic civil aviation administation
Road Transport Organizations: Icelandic Road Administration

Identifying a Supplier

Type of Production: The main sectors of Icelandic industry are its natural resources: fishing, hydraulic and geothermal energy. The IT and new technologies sector has also experienced strong development over the last few years. Industry employs more than 21% of the population.

Business Directories

Multi-sector Directories: Iceland Export - Iceland's trade directory.
Icelandic Export - Business directory of Icelandic exporters.

Manufacturers Associations of the Main Industries: 8 professional associations listed for Iceland.

Trade Agencies and Their Representations Abroad: Iceland Chamber of Commerce
Enterprises Federation: The Federation of Icelandic Industries
SA-Confederation of Icelandic Employers
Federation of Trade & Services

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