Iceland 2018 1 Table of Contents Doing Business in Iceland ___________________________________________ 7 Market Overview ______________________________________________________________ 7 Market Challenges ____________________________________________________________ 8 Market Opportunities __________________________________________________________ 8 Market Entry Strategy _________________________________________________________ 9 Political Environment ______________________________________________ 10 Political Environment _________________________________________________________ 10 Selling US Products & Services ______________________________________ 11 Using an Agent to Sell US Products and Services _________________________________ 11 Establishing an Office ________________________________________________________ 11 Franchising _________________________________________________________________ 11 Direct Marketing _____________________________________________________________ 11 Joint Ventures/Licensing ______________________________________________________ 12 Selling to the Government _____________________________________________________ 12 Distribution & Sales Channels _________________________________________________ 12 Express Delivery ____________________________________________________________ 13 Selling Factors & Techniques __________________________________________________ 13 eCommerce _________________________________________________________________ 13 Trade Promotion & Advertising _________________________________________________ 15 Pricing _____________________________________________________________________ 16 Sales Service/Customer Support _______________________________________________ 16 Protecting Intellectual Property ________________________________________________ 16 Due Diligence _______________________________________________________________ 17 Local Professional Services ___________________________________________________ 18 Principle Business Associations _______________________________________________ 18 Limitations on Selling US Products and Services __________________________________ 18 Web Resources _____________________________________________________________ 18 Leading Sectors for US Exports & Investments _________________________ 19 Agricultural Sector ___________________________________________________________ 19 Overview ____________________________________________________________________ 19 Leading Sub-Sectors ___________________________________________________________ 19 Opportunities _________________________________________________________________ 19 Web Resources _______________________________________________________________ 19 Alcoholic Beverages _________________________________________________________ 20 Overview ____________________________________________________________________ 20 Leading Sub-Sectors ___________________________________________________________ 20 Opportunities _________________________________________________________________ 20 Web Resources _______________________________________________________________ 20 Computer Equipment and Software _____________________________________________ 21 Overview ____________________________________________________________________ 21 Leading Sub-Sectors ___________________________________________________________ 21 Opportunities _________________________________________________________________ 21 Web Resources _______________________________________________________________ 22 Consumer Goods and Entertainment ____________________________________________ 22 Overview ____________________________________________________________________ 22 Leading Sub-Sectors ___________________________________________________________ 22 Opportunities _________________________________________________________________ 22 Web Resources _______________________________________________________________ 23 Energy _____________________________________________________________________ 23 Overview ____________________________________________________________________ 23 Leading Sub-Sectors ___________________________________________________________ 23 Opportunities _________________________________________________________________ 23 Web Resources _______________________________________________________________ 23 Fishing Equipment ___________________________________________________________ 24 Overview ____________________________________________________________________ 24 Leading Sub-Sectors ___________________________________________________________ 24 Opportunities _________________________________________________________________ 24 Web Resources _______________________________________________________________ 24 Franchising _________________________________________________________________ 24 Overview ____________________________________________________________________ 25 Leading Sub-Sectors ___________________________________________________________ 25 Opportunities _________________________________________________________________ 25 Web Resources _______________________________________________________________ 25 Medical Equipment ___________________________________________________________ 25 Overview ____________________________________________________________________ 25 Leading Sub-Sectors ___________________________________________________________ 26 Opportunities _________________________________________________________________ 26 Web Resources _______________________________________________________________ 26 Pharmaceuticals _____________________________________________________________ 26 Overview ____________________________________________________________________ 26 Leading Sub-Sectors ___________________________________________________________ 26 Opportunities _________________________________________________________________ 27 Web Resources _______________________________________________________________ 27 Tourism ____________________________________________________________________ 27 Overview ____________________________________________________________________ 27 Leading Sub-Sectors ___________________________________________________________ 27 Opportunities _________________________________________________________________ 27 Web Resources _______________________________________________________________ 27 Customs, Regulations & Standards ___________________________________ 29 Trade Barriers _______________________________________________________________ 29 Import Tariff ________________________________________________________________ 29 Import Requirements & Documentation __________________________________________ 30 Labeling/Marking Requirements ________________________________________________ 30 U.S. Export Controls _________________________________________________________ 31 Temporary Entry _____________________________________________________________ 31 Prohibited & Restricted Imports ________________________________________________ 31 Customs Regulations _________________________________________________________ 32 Standards for Trade __________________________________________________________ 32 Overview ____________________________________________________________________ 32 Standards ____________________________________________________________________ 32 Testing, inspection and certification ________________________________________________ 32 Publication of technical regulations _________________________________________________ 34 Contact Information ____________________________________________________________ 34 Trade Agreements ___________________________________________________________ 35 Licensing Requirements for Professional Services ________________________________ 35 Web Resources _____________________________________________________________ 35 Investment Climate Statement _______________________________________ 37 Executive Summary __________________________________________________________ 37 Openness to and Restrictions upon Foreign Investment ____________________________ 37 Bilateral Investment Agreements and Taxation Treaties ____________________________ 39 Legal Regime _______________________________________________________________ 40 Industrial Policies ____________________________________________________________ 45 Protection of Property Rights __________________________________________________ 45 Financial Sector _____________________________________________________________ 46 State-Owned Enterprises ______________________________________________________ 48 Responsible Business Conduct ________________________________________________ 49 Corruption __________________________________________________________________ 50 Political and Security Environment ______________________________________________ 50 Labor Policies and Practices ___________________________________________________ 51 OPIC and Other Investment Insurance Programs __________________________________ 52 Foreign Direct Investment and Foreign Portfolio Investment Statistics ________________ 52 Contact for More Information on the Investment Climate Statement ___________________ 55 Trade & Project Financing __________________________________________ 56 Methods of Payment _________________________________________________________ 56 Banking Systems ____________________________________________________________ 56 Foreign Exchange Controls ____________________________________________________ 57 US Banks & Local Correspondent Banks _________________________________________ 58 Project