Goods that have not been customs cleared may not be stored outside approved customs warehouse facilities unless specifically authorised by the Director of Customs. The use, consumption or display of goods stored in such facilities is also prohibited. Persons holding such goods may not release them without the permission of the Director of Customs.

Types of Approved Customs Warehouse Facilities

Temporary Storage Facilities

Operated by carriers (shipping lines and international airlines) or customs brokers. Goods that have not been customs cleared may be stored for up to six months from the arrival of the vessel or aircraft in Iceland. These facilities are generally used for short-term storage while goods await customs clearance or transfer to another approved storage facility.

Customs Warehouses

Operated by legal entities that provide customs warehousing services to others. Goods that have not been customs cleared may be stored without time limitation.

Limited processing activities are permitted, including:

• repackaging

• labelling

• assembly

• testing

• cleaning

Such processing must not alter the tariff classification of the goods.

Customs-cleared goods may also be stored in the same warehouse as uncleared goods, provided that they are clearly distinguished in the inventory records.

Duty-Free Stores for Ship and Aircraft Supplies

These facilities may store provisions, equipment and other supplies intended for international voyages, as well as goods for sale on board vessels and aircraft. Goods that have not been customs cleared, goods from ship or aircraft stores, and domestic products may be transferred to these facilities.

Duty-Free Shops and Associated Storage Facilities

Specialised storage facilities connected with the operation of duty-free shops.

Free Zones

Goods that have not been customs cleared may be used in free zones for manufacturing, processing and industrial activities. A wider range of activities is permitted in free zones than in other types of customs warehouse facilities.

Goods may be transferred into a free zone directly from a vessel or aircraft, from a temporary storage facility, from a customs warehouse, or from domestic stocks intended for industrial production.

Transit Warehouses

Transit warehouses are used solely for the storage of goods that have not been customs cleared until they are re-exported from Iceland. The goods are never customs cleared in Iceland.

The following restrictions apply:

• manufacturing and any other form of processing are prohibited;

• goods may not be transferred from a transit warehouse to another customs warehouse facility; and

• goods may not be released for use within Iceland.

Licensing and Supervision