The Agreement on Trade in Goods between Iceland and the United Kingdom
The UK signed a trade in goods agreement with Iceland and Norway on 8 December 2020 (“Agreement on Trade in Goods”), which is in effect. This guidance provides information on aspects of trade covered by the Iceland-Norway-UK agreement. It is for UK businesses trading with Iceland.
In early 2022 (date to be confirmed) , the Free trade agreement (FTA) between the UK and Iceland is expected to come into effect. The new and comprehensive FTA covers trade in goods, services, investment and a range of other commitments including designed to liberalise and support trade. This guidance will be updated when the FTA comes into effect.
Tariffs on goods
Tariff rates for bilateral trade in goods between the UK and Iceland continue to apply as set out in the agreement. However, in some cases, the non-preferential applied rates may in fact be lower because of changes in the UK’s Most Favoured Nation tariff schedule.
You can use online tools Trade with the UK and Check How to Export Goods to check product-specific and country-specific information on tariffs and regulations that currently apply to UK trade in goods. These tools are regularly updated to reflect any changes.
Tariff rate quotas
The tariff rate quotas for agriculture and fisheries products in the Agreement on Trade in Goods have been tailored specifically to reflect the UK’s actual trade with Iceland.
To find out the tariff rate quotas, see Annexes II and III of the Agreement on Trade in Goods.
If you want to take advantage of tariff rate quotas when exporting from the UK to Iceland, please liaise with importer contacts in Iceland.
Some of the tariff rate quotas are seasonal – the duty and volume available will depend on the month of export and import between the UK and Iceland. Please see tables in Appendix A and Appendix B of the parliamentary report.
Technical regulations and provisions
Regulations for industrial and agricultural products might not be aligned across the UK and Iceland. This means that your business may need to meet additional requirements when exporting to or importing from Iceland.
The UK will continue to treat most imports from Iceland no less favourably than imports from the European Union, for a time limited period. This includes requirements for product testing.
Iceland will continue to replicate the EU’s treatment of industrial products from the UK. This includes requirements for product testing.
In early 2022 (date to be confirmed) , the FTA between the UK and Iceland is expected to come into effect. The new FTA will update some of the existing provisions that relate to product testing, standards and regulation.
Rules of origin
Claiming preferential rates for your exports from the UK
Unless you are permitted to provide an origin declaration, you need to fill in a certificate of origin to claim preferential treatment.
The UK continues to use the EUR1 and EUR-MED format for movement certificates with trade partners that have mutual FTAs with the EU, including Iceland. These movement certificates are identical to those previously in use, but the place of origin on the certificate is now marked as the United Kingdom instead of the European Community. EUR1 and EUR-MED certificates of origin that have been updated to show the UK are now available from your usual provider, such as the chambers of commerce.
If you previously used the EUR1 form with a mutual EU trading partner, you can use the new EUR1 form that shows the UK as the place of origin. If you previously used an EUR-MED form with a mutual EU trading partner, you can use the new EUR-MED form that shows the UK as the place of origin.
Using EU materials and processing in your exports to Iceland
You can use EU materials or processing in your exports to Iceland. The UK and Iceland must have fulfilled the necessary requirements set out in the Rules of Origin Protocol to the Agreement on Trade in Goods. You must also ensure the working or processing you do in the UK goes beyond the minimal operations listed in the agreement and that the other relevant conditions are met.
For example, you cannot simply package or label a product from the EU and export it to Iceland as a good originating in the UK.
See the list of minimal operations in Article 5 of the Rules of Origin Protocol in the Iceland-Norway-UK agreement.
The ability to consider materials from, or processing carried out in, another country as originating when incorporated into your product is called cumulation.
Using materials and/or processing from other countries in your exports to Iceland
If both the UK and Iceland has a trade agreement with one of the other countries listed in the Rules of Origin Protocol, you can continue using materials, and in some cases, processing from that country in your exports to Iceland. You must ensure that the working or processing you do in the UK goes beyond the minimal operations listed in the agreement and that the other relevant conditions are fulfilled.
Sending your goods to Iceland through the EU and other countries
Goods transited through the EU – and any other country with whom cumulation is applicable – are not subject to the same restrictions as those in transit through other third countries.
For example, you can split a consignment in the EU when exporting goods to Iceland, provided the goods comprising the consignment have not cleared customs in the EU.
Transit through any other third country is possible provided your goods remain under customs surveillance and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.
Goods in transit and retrospective certificates of origin
If your goods were in transit when the Iceland-UK trade agreement took effect you can obtain a retrospective certificate of origin. This shows that the goods originated in the UK and are eligible for preferential terms if your goods arrived on, or within 12 months after, the date the Iceland-UK trade agreement came into effect.
You can get retrospective certificates of origin from your usual provider.
Claiming preferential rates for your exports from the UK
As an importer, you must declare that you hold proof your goods comply with the rules of origin to benefit from preferential tariffs when:
- importing into the UK from Iceland
- importing into Iceland from the UK
Entitlement to preferential tariffs is based on a declaration on origin issued by the exporter. Your declaration on origin can be in electronic format (for example, emails and PDFs). As a UK exporter, you can issue a declaration on origin without having all the necessary information on origin. UK exporters should be:
- confident that the origin of goods is correct
- prepared to provide necessary information
In early 2022 (date to be confirmed) , the FTA between the UK and Iceland is expected to come into effect. The new FTA will update some of the existing provisions that relate to Rules of Origin.
Geographical indications
Geographical indications (GIs) protect the geographical names of food, drink and agricultural products.
The Agreement on Trade in Goods provides protection for UK GIs for agricultural products and foodstuffs in Iceland only.
In early 2022 (date to be confirmed) , the FTA between the UK and Iceland will come into effect. GIs will continue to protect the geographical names of food, drink and agricultural products. The new and updated FTA includes GI protection for agricultural products and foodstuffs, and wines and spirits.
Trade in services and investment
Due to the interdependencies with EU laws and systems, the services and investment provisions of the existing EEA Agreement which underpinned the trading relationship between EU Member States and EEA EFTA States have not been transitioned into the Agreement on Trade in Goods. This means the Agreement on Trade in Goods does not cover trade in services and investment.
The UK has put in place some unilateral measures to ensure, where possible, business continuity in services and investment trade between the UK and Iceland, but you may face additional steps or trade barriers if you provide services in these countries.
Find out more about selling services to Iceland.
In early 2022 (date to be confirmed), the FTA between the UK and Iceland will come into effect. The new FTA will include provisions on services and investment.
Bidding for public procurement contracts
In early 2022 (date to be confirmed) , the FTA between the UK and Iceland will come into effect. The new FTA will include provisions on bidding for public procurement contracts.
In addition, from 1 January 2021, for a period of 12 months, the UK and Iceland have continued to grant businesses from each other’s country the same non-discriminatory treatment that they had while the UK was a member of the EU. This was done by way of an interim agreement, pending completion of negotiations for a new agreement between the UK and Norway, Iceland and Liechtenstein.
Provisions under the existing interim agreement between the UK and Iceland go further than the GPA and give suppliers access to additional public procurement markets. However, as the interim agreement will end on 31 December 2021, from 1 January 2022 until the new FTA between the UK and Iceland enters into force, suppliers from the UK and Iceland will only have guaranteed access to each other’s procurement markets as provided for under the GPA.
Further information
Find further guidance on exporting.
Find out about moving goods into, out of, or through Northern Ireland.
Freight forwarding may save you time and money if you’re exporting large volumes of goods or high value items by sea or air freight. Find out more about moving goods and using freight forwarders.
You should consult your legal advisers if you wish to ensure you understand the legal implications of trading for your business.
If you have queries about trade, contact the Department for International Trade (DIT).
Should you wish to speak to someone directly, we have local trade offices based around the UK. Within each office you can contact an international trade adviser. Find your local trade office.
