Rules of origin determine in which country a product is considered to originate. They are not based solely on where the goods are exported from, but also on how they are produced and the origin of the materials used in production.

The purpose of these rules is to ensure the correct application of customs preferences under free trade agreements. Only products that meet the origin requirements qualify as originating products and may therefore benefit from reduced customs duties or duty-free treatment when imported into partner countries.

The importer must provide proof of origin to support a claim for preferential treatment, for example an EUR.1 movement certificate or an origin declaration on the invoice.

Iceland is party to numerous free trade agreements, including the EEA Agreement and EFTA agreements with countries in Europe and the Mediterranean region. Most of these agreements are based on the PEM Convention, which establishes a common framework for rules of origin between the participating parties.

Guides on rules of origin and the PEM Convention