Importing leather goods from Japan — 2026 rules
When you import leather goods (HS heading 4202.92) — for example leather wallets, belts and jackets — from Japan to Iceland, you owe 12% general duty and 24% VAT on the full customs value (CIF price).
Leather goods carry 12% duty on top of 24% VAT, making them notably more expensive than electronics.
Japan is not covered by the EEA/EFTA agreements, so full duty and VAT are always assessed on the customs value.
Worked examples
Here's how the total cost builds up for three sample item prices from Japan, using an exchange rate of 139.8 ISK per USD.
| Item price | Customs value (CIF) | Duty | VAT | Total landed cost |
|---|---|---|---|---|
| 10,000 USD | 1,402,500 ISK | 168,300 ISK | 376,992 ISK | 1,949,742 ISK |
| 35,000 USD | 4,897,500 ISK | 587,700 ISK | 1,316,448 ISK | 6,803,598 ISK |
| 100,000 USD | 13,984,500 ISK | 1,678,140 ISK | 3,759,034 ISK | 19,423,624 ISK |
Step by step: customs clearance
- 1.The seller in Japan attaches shipping documents (invoice, customs value and HS heading 4202.92) to the carrier's booking.
- 2.The carrier (post, FedEx, UPS or DHL) files an electronic customs declaration with Icelandic customs before the shipment arrives.
- 3.Duty and VAT are calculated on the customs value (CIF), and you receive a payment request, often before the item is released.
- 4.Once fees are paid, the shipment is released — for home delivery or pickup at the carrier's depot.
Frequently asked questions
Is there duty on leather goods from Japan?+
Yes — leather goods carries 12% general duty under HS heading 4202.92, plus 24% VAT charged on the customs value including that duty.
What is the customs value and how is it calculated?+
The customs value (CIF price) is the item price in Icelandic krónur plus freight and insurance to the Icelandic border. Both duty and VAT are calculated on this combined figure, not just the item's price.
Is there any duty relief from Japan?+
Japan has no free-trade agreement with Iceland, so the full general tariff rate applies without exception for this category.
Do I have to pay VAT on small shipments?+
Yes. Unlike many other countries, Iceland has no de-minimis threshold exempting low-value parcels — 24% VAT is charged on almost all incoming shipments, regardless of how small the declared value is.
How long does customs clearance from Japan take?+
Japan is not covered by the EEA/EFTA agreements, so full duty and VAT are always assessed on the customs value.
Other categories from Japan
| Category | Duty | VAT | |
|---|---|---|---|
| Consumer Electronics | 0% | 24% | View → |
| Smartphones & Mobile Devices | 0% | 24% | View → |
| Laptops & Notebooks | 0% | 24% | View → |
| Clothing & Fashion | 12% | 24% | View → |
| Shoes & Footwear | 10% | 24% | View → |
| Cameras & Optics | 0% | 24% | View → |
| Drones & UAVs | 0% | 24% | View → |
| Tools & Hardware | 0% | 24% | View → |
| Safety Gear & Protective Equipment | 0% | 24% | View → |
| Sports Equipment | 0% | 24% | View → |
| Audio Gear & Headphones | 0% | 24% | View → |