Whether you're sending a gift to a friend in Iceland or traveling with it there yourself, it's important to understand what the laws are and what you need to do to ensure you're following them.

Icelandic customs regulations for gifts are a little different than their regulations for other imports and exports, with gifts often being exempt from any form of duty fees. So, what is a "gift"?

The most important question is whether the item you are sending (or traveling with) is even considered a gift in the first place, isn't it?

Iceland's customs authorities define a gift in one of three ways. First, it is something given to one individual for a special occasion. Second, it is equipment and supplies for humanitarian relief or charitable purposes. Third, a gift can be an official recognition of a special cultural link, like a "sister city" or similar.

Are gifts duty-free in Iceland?

Gifts that fall into either the second or third categories are completely duty free, regardless of their value. The first category is trickier, and it depends on how much the gift is worth and whether it is restricted by any other regulations.

Which gifts to individuals are duty free?

Gifts given for special occasions valued at under 13,500 ISK are not subject to import duties unless they are a restricted item like alcohol or tobacco. Wedding presents of any value are also duty free so long as a customs inspector deems them appropriate. The recipient of the gift may be called on to prove it is for a special occasion.

Does paperwork need to be filed?

All gifts should be declared through customs the same as anything else. Gifts valued at under 40,000 ISK need a Simple Report (E-3), while more expensive gifts need a Customs Declaration (E-1). If the gift is not duty free, the customs handling charge paid with the report is the same as a standard shipment. The report can be found at every post office in Iceland or downloaded from their website.

What are the regulations on alcohol and tobacco?

Alcohol and tobacco as gifts do not get special treatment, so they follow the standard duty free rules. A person my import a certain amount duty free, and they are limited to 200 cigarettes (one carton), 250 g of other tobacco products (normally rolling or pipe tobacco) and either 1. one liter of spirits and one liter of wine, 2. one and a half liters of wine and six liters of beer, 3. one liter of spirits and six liters of beer, or 4. three liters of wine. Spirits are defined as a beverage with 22% alcohol or more, wine is alcohol below that threshold and beer is beer. A person transporting or receiving alcohol must be at least 20 years old, 18 for tobacco.

Who pays the duty if the gift isn't duty free?

The duty on the gift can be paid in advance by the sender if they contact customs and arrange for it, otherwise the duty will fall on the recipient. Alternatively, arrangement can be made for the sender to pay the duty on arrival, but that means it will be held by customs until everything is taken care of.

What things are restricted by Icelandic customs?

Uncooked meat (defined as fully cooked, not smoked, salted or dried), eggs and dairy cannot enter Iceland. Firearms, communication devices other than mobile phones, fireworks, snuff tobacco, customized radio and remote control gear, narcotics, prescription drugs, blades longer than 12" and most weapons, and fishing gear are also banned. Flowers and other plants are banned unless they have a health certificate endorsed by the Icelandic Agricultural Research Institute.