Iceland 2019
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Iceland 2019 1 Table of Contents Doing Business in Iceland ___________________________________________ 5 Market Overview ______________________________________________________________ 5 Market Challenges _____________________________________________________________ 6 Market Opportunities ___________________________________________________________ 6 Market Entry Strategy __________________________________________________________ 7 Political Environment _______________________________________________ 8 Selling US Products & Services _______________________________________ 9 Using an Agent to Sell US Products and Services ___________________________________ 9 Establishing an Office __________________________________________________________ 9 Franchising __________________________________________________________________ 9 Direct Marketing _______________________________________________________________ 9 Joint Ventures/Licensing ______________________________________________________ 10 Selling to the Government _____________________________________________________ 10 Distribution & Sales Channels __________________________________________________ 10 Express Delivery _____________________________________________________________ 10 Selling Factors & Techniques ___________________________________________________ 11 eCommerce _________________________________________________________________ 11 Trade Promotion & Advertising _________________________________________________ 13 Pricing ______________________________________________________________________ 13 Sales Service/Customer Support ________________________________________________ 14 Protecting Intellectual Property _________________________________________________ 14 Due Diligence ________________________________________________________________ 15 Local Professional Services ____________________________________________________ 15 Principal Business Associations ________________________________________________ 15 Limitations on Selling US Products and Services __________________________________ 16 Web Resources ______________________________________________________________ 16 Leading Sectors for US Exports & Investments _________________________ 17 Agricultural Sector ___________________________________________________________ 17 Alcoholic Beverages __________________________________________________________ 18 Computer Equipment and Software ______________________________________________ 19 Consumer Goods and Entertainment ____________________________________________ 20 Energy ______________________________________________________________________ 21 Fishing Equipment____________________________________________________________ 22 2 Franchising _________________________________________________________________ 23 Medical Equipment ___________________________________________________________ 24 Pharmaceuticals _____________________________________________________________ 25 Tourism _____________________________________________________________________ 26 Customs, Regulations & Standards ___________________________________ 27 Trade Barriers _______________________________________________________________ 27 Import Tariff _________________________________________________________________ 27 Import Requirements & Documentation __________________________________________ 28 Labeling/Marking Requirements ________________________________________________ 28 U.S. Export Controls __________________________________________________________ 28 Temporary Entry _____________________________________________________________ 28 Prohibited & Restricted Imports _________________________________________________ 30 Customs Regulations _________________________________________________________ 31 Standards for Trade ___________________________________________________________ 31 Trade Agreements ____________________________________________________________ 34 Licensing Requirements for Professional Services _________________________________ 34 Web Resources ______________________________________________________________ 34 Investment Climate Statement _______________________________________ 35 Executive Summary ______________________________________ Error! Bookmark not defined. Openness to and Restrictions upon Foreign Investment _______ Error! Bookmark not defined. Bilateral Investment Agreements and Taxation Treaties ________ Error! Bookmark not defined. Legal Regime ___________________________________________ Error! Bookmark not defined. Industrial Policies _______________________________________ Error! Bookmark not defined. Protection of Property Rights ______________________________ Error! Bookmark not defined. Financial Sector _________________________________________ Error! Bookmark not defined. State-Owned Enterprises _________________________________ Error! Bookmark not defined. Responsible Business Conduct ____________________________ Error! Bookmark not defined. Corruption _____________________________________________ Error! Bookmark not defined. Political and Security Environment _________________________ Error! Bookmark not defined. Labor Policies and Practices ______________________________ Error! Bookmark not defined. OPIC and Other Investment Insurance Programs______________ Error! Bookmark not defined. Foreign Direct Investment and Foreign Portfolio Investment StatisticsError! Bookmark not defined. Contact for More Information on the Investment Climate StatementError! Bookmark not defined. Trade & Project Financing __________________________________________ 36 Methods of Payment __________________________________________________________ 36 3 Banking Systems _____________________________________________________________ 36 Foreign Exchange Controls ____________________________________________________ 36 US Banks & Local Correspondent Banks _________________________________________ 37 Project Financing _____________________________________________________________ 37 Financing Web Resources _____________________________________________________ 38 Business Travel ___________________________________________________ 39 Business Customs____________________________________________________________ 39 Travel Advisory ______________________________________________________________ 39 Visa Requirements ___________________________________________________________ 40 Currency ____________________________________________________________________ 40 Telecommunications/Electronics ________________________________________________ 40 Transportation _______________________________________________________________ 41 Language ___________________________________________________________________ 41 Health ______________________________________________________________________ 41 Local Time, Business Hours and Holidays ________________________________________ 41 Temporary Entry of Materials or Personal Belongings ______________________________ 41 Travel Related Web Resources _________________________________________________ 41 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2018. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Legal Disclaimer: The US&FCS makes every reasonable effort to ensure the accuracy and completeness of the information in this Guide, a resource for U.S. businesses to use in the exercise of their business judgment. U.S. businesses should conduct their own due diligence before relying on this information. When utilizing the information provided, the U.S. business is responsible for complying with all applicable laws and regulations of the United States, including the U.S. Foreign Corrupt Practices Act ሺFCPAሻ. References and links to third-parties and their content are provided for the convenience of readers, and are not exhaustive lists of such resources. The US&FCS is not responsible for the availability of any third-party or its content whether found on an external site or otherwise; nor does US&FCS endorse the third-parties or endorse, warrant, or guarantee the products, services, or information described or offered in any third-party content. Please be aware that when following a link to an external site, you are then subject to the privacy and security policies and protections of the new site. 4 Doing Business in Iceland Market Overview Iceland is a stable democracy with an active consumer economy. The pillars of the Icelandic economy are aluminum smelting, fishing, and tourism. Iceland’s main material exports are aluminum products and fish products, and main service exports are tourism related services. In 2018, tourism accounted for 39% of total exports of goods and services, while marine products were 18% of total exports, aluminium products another 17%.Main material imports to Iceland in 2018 were industrial supplies 29%, capital goods ሺexcept for transportሻ 21%, transport equipment 15%, fuels and lubricants 15%, consumer goods 12%, and food and beverages 8%. The United States is Iceland’s largest trading partner by country, both in terms of exports and imports ሺ2018ሻ. European Union Member States remain Iceland’s most important trading partners collectively, with exports from Iceland to the EU accounting for 71.8% of total exports, and around two thirds of all imports coming from the EU. The booming tourism industry is a major contributor to the fact that the U.S. is now Iceland’s largest trading partner by country, as the vast majority of tourists now come from the U.S., and tourism is considered export of services. Iceland is an island nation about