Application for a Licence to Operate a Customs Storage Facility

A licence is required to operate facilities for storing goods that have not been customs cleared. Licences are granted only to legal entities. Individuals are not eligible to apply.

Application process

Applications must be submitted in writing and include the following information:

• The applicant’s name, identification number, and the names, identification numbers, and legal addresses of board members and the managing director.

• The type of storage facility for which a licence is sought. See further information on warehouse types and the rules applicable to each.

• A declaration from a legal representative, chair of the board, managing director, or authorised agent confirming that all requirements applicable to the operation have been, or will be, met.

Supporting documents

The following documents must accompany the application:

• A report describing in detail the proposed operations and organisational structure, accounting procedures, inventory management systems, record retention, internal controls, and facilities for customs supervision.

• Drawings of the premises and site intended for the operation.

• Certificates of legal competence and criminal record certificates for board members and the managing director.

• A customs brokerage licence, if a customs broker is applying for a licence to operate a temporary storage facility.

Security to the Treasury

Operators of customs warehouses, duty-free stores warehouses, temporary storage facilities, and free zones must provide security to the Treasury equal to 3% of the customs value of the goods expected to be stored at any given time.

The minimum security amount is:

• ISK 50,000,000 for customs warehouses, temporary storage facilities, and free zones.

• A lower minimum amount applies to duty-free stores warehouses.

Operations may not commence until the required security or security documents have been submitted to the Director of Customs.

Requirements

The following requirements must be met, depending on the type of storage facility:

• The applicant must be a legal entity.

• Board members must have a good reputation and be legally competent.

• Management, internal controls, accounting procedures, and record retention must be reliable and appropriate.

• Premises and facilities must meet customs supervision requirements.

• The licence holder must provide security where required (customs warehouses, free zones, and temporary storage facilities).

Board members of the licence holder are personally responsible for ensuring that internal control systems are robust and effective and provide reasonable assurance that laws and regulations are complied with.

Obligations after a licence is granted

Inventory records must be maintained for all goods stored in the facility:

• Temporary storage facilities must maintain records based on cargo manifests.

• Customs warehouses must record all information necessary for customs clearance.

The storage facility code must always be included in cargo manifest submissions to the Director of Customs. Cargo manifests submitted without a storage facility code will be rejected.

The transfer of non-cleared goods between approved storage facilities must be reported to, and authorised by, the Director of Customs.

The Director of Customs may conduct stock checks at storage facilities at any time.