Importing From India to Iceland

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India shipped about 3,000 cotton T-shirts to Iceland in FY2025-26, worth about US$0.01 million (TradeStat EIDB (opens in a new tab), HS 61091000, our query). That's one small order. Iceland is a tiny market for Indian goods, and we won't pretend otherwise.

But its TEPA schedule has a few lines that matter a lot to the right buyer, mostly in food. This page covers those, the Icelandic VAT and how goods get there. The agreement, the origin rule and the self-declared certificate are on the EFTA bloc page.

Last researched 28 September 2026 · Next review 24 November 2026 · Written by SourcingFrom

1. What Iceland's Schedule Cut

The official release names four Icelandic changes (PIB, 30 September 2025 (opens in a new tab)). Duties of up to ISK 97 per kg on processed foods go to zero. Duties on chocolate and confectionery are eliminated. Tariffs of up to 10% on frozen and prepared shrimp, squid and cuttlefish go. And tariffs of up to 55% on fish feed are eliminated.

That last one is the eye-catcher. If you're in Icelandic aquaculture and buy feed ingredients, a direct Indian source with a TEPA proof is worth pricing against your current supplier. For Indian snacks, sweets and prepared seafood, the processed-food cuts are the ones to check. Find your line in Annex 2.D, Iceland's schedule (opens in a new tab), because some may phase down rather than drop at once.

2. VAT and Getting There

Iceland's standard VAT rate is 24% and the reduced rate is 11%. Imported goods are taxable, and the owner of the goods pays the VAT at import (Skatturinn, value added tax (opens in a new tab)).

No carrier schedule we read in September 2026 listed an Icelandic port from India, so expect a relay through a European hub. For a small order, that relay often costs more than the ocean leg. Get it quoted door to door before you compare suppliers.

Next Step

The agreement and origin rules are on the EFTA bloc page. Every Indian agreement is on India's trade agreements.