Capital Movements, Imports and Foreign Investments - Act on Imports, No 88/1992-

Importation of goods and services to Iceland shall be unrestricted unless otherwise stipulated by the provisions of statutes or international agreements to which Iceland is party.
Notwithstanding such import restrictions as might be in effect in specific fields, goods may nonetheless be imported to Iceland if intended for the use of embassies of foreign states and others who by statute, international agreement or custom enjoy exemption from import restrictions in Iceland. This provision, however, does not apply to goods which are considered to pose a risk of spreading infectious diseases to the country.
A special 1% duty shall be levied on the sum involved in each instance when an exemption is granted from import restrictions. The duty shall be collected by the intermediary for the sale of foreign currency for the import transaction. Revenues from this duty shall accrue to the Treasury.
It is prohibited to clear goods through customs or act as an intermediary for external payment for goods or services which are subject to import restrictions unless an exemption for their importation has been obtained.
Violation of the provisions of this Act shall be punishable by a fine. In the event of violations on behalf of legal persons, the abovementioned penalties may be imposed on their management, and furthermore the legal persons may be fined or their rights to operate withdrawn.
Attempted violation of the provisions of this Act, or complicity in such a violation, is also liable to punishment under the terms of Chapter III of the Criminal Act.
Cases concerning violations of this Act shall be proceeded with as criminal cases.
The Minister of Commerce is responsible for the implementation of this Act. He may issue a Regulation establishing more detailed provisions for its implementation.
This Act takes immediate effect.
Notwithstanding Paragraph 1 of Article 1, the Minister of Commerce may issue a Regulation stating that importation of brushes and other goods analogous to those manufactured at workshops for the blind in Iceland shall be subject to restrictions and only authorized by the granting of an exemption.