A customs broker is a legal entity authorised to act on behalf of importers and exporters in dealings with customs authorities. Customs brokerage is a licensed activity and is subject to supervision by the Director of Customs.

There is no legal requirement under the Customs Act to use a customs broker. However, engaging a customs broker may improve efficiency, data accuracy and cost-effectiveness, particularly for businesses that import or export goods on a regular basis.

Role of a Customs Broker

Customs brokers provide services ranging from basic advice to full management of customs clearance procedures, including:

• advising on customs documentation, tariff classification and the calculation of import charges

• preparing customs declarations for imports and exports

• requesting customs clearance of goods on behalf of clients

• paying import charges on behalf of importers.

Duties and Requirements

Employees of a customs broker must perform their duties diligently and conscientiously and comply with all laws and regulations applicable to their work.

If a customs broker becomes aware that a client has knowingly submitted incorrect or incomplete information, the broker is required to notify the Director of Customs without delay.

Customs brokers handling express consignments must provide security to the Treasury. The security may not be less than ISK 5 million and represents the maximum amount of import charges that may be charged to the broker's account.

All customs declarations must be submitted electronically to the Director of Customs.

Licensing Requirements

Strict requirements apply to the board members and managing directors of customs brokerage companies:

• good reputation;

• residence in Iceland or another EEA country;

• no convictions for offences under customs legislation; and

• sound management, internal control procedures, accounting systems and record-keeping arrangements.

Revocation of a Licence

The Director of Customs may revoke a customs broker licence if the broker no longer meets the licensing requirements or seriously neglects its obligations.