Importing leather goods from United Kingdom — 2026 rules
When you import leather goods (HS heading 4202.92) — for example leather wallets, belts and jackets — from United Kingdom 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.
The UK left the EU but is covered by Iceland's EFTA free-trade agreement, which can reduce or remove duty on goods with valid proof of origin.
Worked examples
Here's how the total cost builds up for three sample item prices from United Kingdom, using an exchange rate of 178.5 ISK per GBP.
| Item price | Customs value (CIF) | Duty | VAT | Total landed cost |
|---|---|---|---|---|
| 10,000 GBP | 1,789,500 ISK | 214,740 ISK | 481,018 ISK | 2,487,208 ISK |
| 35,000 GBP | 6,252,000 ISK | 750,240 ISK | 1,680,538 ISK | 8,684,728 ISK |
| 100,000 GBP | 17,854,500 ISK | 2,142,540 ISK | 4,799,290 ISK | 24,798,280 ISK |
Step by step: customs clearance
- 1.The seller in United Kingdom 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 United Kingdom?+
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.
Does the EEA/EFTA agreement with United Kingdom help?+
United Kingdom is covered by an EEA or EFTA free-trade agreement with Iceland. With a valid proof of origin (e.g. an EUR.1 certificate or an origin declaration on the invoice), duty on qualifying goods can be reduced or removed — VAT is still always charged regardless of origin.
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 United Kingdom take?+
The UK left the EU but is covered by Iceland's EFTA free-trade agreement, which can reduce or remove duty on goods with valid proof of origin.
Other categories from United Kingdom
| 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 → |