Skatturinn - Iceland Revenue and Customs

Customs Control and Goods Inspection

How Does Customs Control Work?

Document Checks

When a vessel or aircraft arrives in or departs from Iceland, cargo processing begins and the required documents are submitted to the Iceland Revenue and Customs Authority.

Once the documents have been reviewed and authorisation has been granted, loading, unloading, cargo handling and customs clearance may proceed.

Physical Inspection of Goods

Customs officers have the authority to inspect and examine all goods imported into or exported from Iceland, whether they are transported:

by vessel or aircraft under a cargo manifest
by post or courier service
in passengers’ baggage

Customs uses risk assessment and systematic shipment analysis to determine which consignments are selected for inspection.

Customs brokers, carriers and importers responsible for uncleared goods are required to assist with inspections. This may include opening packages, presenting goods for examination and providing any information requested by customs authorities.

What Is Inspected and Why?

Customs inspections are carried out for a variety of reasons and are not limited to the assessment of duties and taxes.

Area of Inspection	Purpose
Customs duties and taxes	To verify that the correct duties and charges have been declared and paid.
Counterfeit goods	To identify goods that may infringe intellectual property rights.
Import and export restrictions	To verify that required permits have been obtained and that prohibited goods are not being traded.
Narcotics and controlled substances	Routine inspections and targeted risk-based controls.
Food and medicines	To ensure compliance with health and safety requirements.
Environmental protection	To enforce rules relating to waste, hazardous substances and environmental protection.

Shipments opened for customs inspection are marked with a customs inspection label.

What Happens if an Issue Is Identified?

Situation	Outcome
Incomplete documentation	Customs clearance is suspended while the responsible party resolves the issue.
Incorrect or misleading information in the customs declaration	Customs clearance may be delayed and can result in reassessment of import charges and penalties.
Incorrect tariff classification	Reassessment of import charges, late-payment interest and possible surcharges.
Import charges underpaid or overpaid	Reassessment and collection or refund of charges, with interest and possible penalties where applicable.
Import charges unpaid at the time of customs clearance	Goods will not be released and remain under customs control until payment is made or other instructions are issued.
Missing permits or approvals	Customs clearance is refused until a decision is made regarding disposal or re-export of the goods.
Goods unavailable for inspection	The Iceland Revenue and Customs Authority may arrange an inspection at the importer’s or holder’s expense.
Goods do not meet import requirements	The goods may be destroyed or re-exported.
Suspected violation of import restrictions	Goods may be detained and may be seized, forfeited, destroyed or referred to another authority.
Suspected counterfeit goods	Customs clearance is suspended while the rights holder is given an opportunity to take action.
Goods formally seized	Goods are held pending the outcome of proceedings and may subsequently be auctioned or destroyed.
Temporary import procedure not properly discharged	The temporary import may be converted into a permanent import and import charges, together with interest, may be assessed retrospectively.
Goods damaged or unfit for consumption before customs clearance is completed	The goods may be destroyed under customs supervision, with disposal costs charged in accordance with the applicable tariff.
Goods abandoned or not collected from storage	Goods may be sold by compulsory auction or destroyed at the importer’s expense. Storage charges may also apply while the goods remain in storage. Importers should contact the carrier for further information.