Customs duty is based on the payable value of the shipment. The payable value is worked out according to rules set by the government in keeping with the agreement on the application of Article Vll in the General Agreement on Tariffs and Trade (GATT).

The fundamental rule is that all goods must be cleared by customs upon arrival in the Faroe Islands. 

All shipments of goods are registered with a number as they arrive. For the most part, this is done electronically through the shipping agent. This number is needed for customs clearance. 

When the importer is a company, it must register for VAT with TAKS and receive a V-tal (VAT-number). The V-tal is required in all communication with TAKS and in connection with the importation and customs clearance. 

A company that regularly imports goods can apply to become registered as a customs credit client. A customs credit client gets the goods delivered as soon as they arrive without paying the importation cost first. The condition is that the shipment clears customs at the latest 14 days after it enters the country and the importation cost is settled at the latest on the 28th of the month after the importation.

Shipments to companies that are not customs credit clients must clear customs and pay the importation costs to TAKS before their goods can be released.
Companies that have access to Vinnugluggin can pay the importation cost and clear customs online on Vinnugluggin. Click the link under quick links to read more about Vinnugluggin and how to get access.

When a company is registered as a customs credit client, it must use Vinnugluggin for customs clearing goods that arrive by post. A company that is not registered as a customs credit client can use Vinnugluggin for customs clearance.

Another option is to get the shipping agent to clear customs or to send the documents including the customs form (tollingaráheitan) to TAKS' customer service to clear. Posta (the postal service) clears customs on shipments by air.

The following documents are required for clearing customs:

1. Freight invoice
2. Invoice
3. Certificate of origin*
4. Customs form (tollingaráheitan)

Furthermore, other documents may be required, for example, a health declaration or permits for special goods such as meat, fish, live animals, weapons or fireworks.

*) The certificate of origin is not a condition for customs clearance, but without such a certificate the goods must pay customs duty (GATT). Read more about this under "More about the certificate of origin" below.

1. The freight invoice must contain:

• Name and address of the sender and the receiver
• Freight number
• Pieces, description of goods, net weight and gross weight
• The dutiable freight charges, insurance etc.

2. The invoice must contain:

• Name and address of the sender and the receiver
• Pieces, description of goods, net weight and gross weight
• Invoice value per line or per item and total value
• Description of discount, if any

Please note, pro forma invoices are generally not accepted for customs clearance.

3. Certificate of origin

• Name and address of the sender
• Pieces, description of goods and gross weight
• Country of origin

More about the certificate of origin
The certificate of origin may either be a EUR1 certificate or a certificate declared on the invoice. The certificate of origin is only intended for goods that originate in countries that the Faroes have a free trade agreement with, these are: Iceland, Norway, Switzerland and EU-countries. Goods produced in a country that the Faroe Islands have a free trade agreement with are exempt from customs duty (GATT). If there is no certificate of origin, the goods are subject to customs duty even if they are produced in a country that the Faroes have a free trade agreement with. The percentage rate of customs duty varies according to the type of good, see the rates in the Customs Tariff list, find it under quick links. 

If the value of the shipment is DKK 3,000 or less, it is sufficient that the country of origin is certified on the invoice. 

If the value of the shipment is between DKK 3,000 and EUR 6,000, the certificate of origin must state the following: "The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of : (add country of origin) preferential origin”. The sender must certify by signing the document. 

If the value of the shipment exceeds EUR 6,000, the above-mentioned certificate must also have an authorisation number from the customs authorities in the country of shipment. The certificate must state the following: “The exporter of the products covered by this document, customs authorisation No (add number) declares that, except where otherwise clearly indicated, these products are of (add country of origin) preferential origin”.

A EUR1 certificate of origin must be signed and stamped by the customs authority in the country of shipment. A copy of the EUR1 certificate is not sufficient, only the original EUR1 certificate will be accepted.

4. The customs form (Tollingaráheitan)
Please note, if the value of the shipment is under DKK 3,000 it is not necessary to complete a customs form. But if the value is DKK 3,000 or more, a customs form must be completed. 

To fill out the customs form, you need to know the tariff number of the items. Find the tariff number in the Customs Tariff list (Toll- og vøruskráin) under quick links. 

Customs payment

• The importation costs can only be paid via bank transfer or credit card
• Users of Vinnugluggin can also pay the costs directly on Vinnugluggin if a payment agreement has been entered.

• If the shipping agent or Posta clear customs on the shipment, the importation costs are payable to them.
• If TAKS clears customs on the shipment, the importation costs are payable to TAKS via bank transfer or credit card (as of yet, it is only possible to use Visa/Dankort).

Delivery of the goods

• When the shipment has cleared customs and the importation costs are paid, it can be released to the owner. However, companies that are customs credit clients can get the shipment delivered immediately upon arrival.

Calculating the importation costs

• Customs duty (GATT) on the invoice value + shipping costs
• Excise tax on the invoice value + shipping costs + customs duty
• VAT on the invoice value + shipping costs + customs duty + excise tax
• Service fee

In field 24 of the customs form (tollingaráheitan), you are asked to enter a code for the country where the goods are made. The country code consists of two letters. Below is a list of all the countries followed by their country code.

A
Afghanistan, AF
Aland Islands, AX
Albania, AL
Algeria, DZ
American Samoa, AS
American Virgin Islands, VI
Andorra, AD
Angola, AO
Anguilla, AI
Antarctica, AQ
Antigua and Barbuda, AG
Argentina, AR
Armenia, AM
Aruba, AW
Azerbaijan, AZ
Australia, AU
Austria, AT

B
Bahamas, BS
Bangladesh, BD
Bahrain, BH
Barbados, BB
Belarus, BY
Belgium, BE
Belize, BZ
Benin, BJ
Bermuda, BM
Bolivia, BO
Bonaire, St Eustatius and Saba, BQ
Bosnia-Herzegovina, BA
Botswana, BW
Bouvet, BV
Brazil, BR
British Indian Ocean Territory, IO
British Virgin Islands, VG
Brunei, BN
Bulgaria, BG
Burkina Faso, BF
Burma (Myanmar), MM
Burundi, BI
Bhutan, BT

C
Cambodia, KH
Cameroon, CM
Canada, CA
Cape Verde, CV
Cayman Islands, KY
Central African Republic, CF
Chad, TD
Congo-Brazzaville, CG
Congo-Kinshasa, CD
Chile, CL
China, CN
Christmas Island, CX
Croatia, HR
Cocos Islands, CC
Costa Rica, CR
Cook Islands CK
Columbia, CO
Comoros, KM
Cuba, CU
Curacao, CW
Czech Republic, CZ
Cyprus, CY

D
Denmark, DK
Djibouti, DJ
Dominica, DM
Dominican Republic, DO

E
Egypt, EG
Ecuador, EC
Equatorial Guinea, GQ
El Salvador, SV
Eritrea, ER
Estonia, EE
Ethiopia, ET
East Timor (Timor-Leste), TL

F
Falkland Islands, FK
Faroe Islands, FO
Fiji, FJ
Finland, FI
France, FR
French Guiana, FG
French Polynesia, PF
French St Martin, MF
French South Territory, TF

G
Gabon, GA
Gambia, GM
Ghana, GH
Georgia, GE
Germany, DE
Gibraltar, GI
Grenada, GD
Greece, GR
Greenland, GL
Guadeloupe, GP
Guam, GU
Guatemala, GT
Guernsey, GG
Guinea-Bissau, GW
Guinea, GN
Guiana, GY

H
Haiti, HT
Holland, NL
Heard- and McDonalds Islands, HM
Honduras, HN
Hong Kong, HK
Hungary, HU

I
Iceland, IS
India, IN
Indonesia, ID
Iraq, IQ
Iran, IR
Ireland, IE
Isle of Man, IM
Israel, IL
Italy, IT
Ivory Coast, CI

J
Jamaica, JM
Japan, JP
Yemen, YE
Jersey, JE
Jordan, JO

K
Kazakhstan, KZ
Kenya, KE
Kirghistan, KG
Kiribati, KI
Kosovo, XK
Kuwait, KW

L
Laos, LA
Lesotho, LS
Latvia, LV
Lebanon, LB
Liberia, LR
Libya, LY
Lichtenstein, LI
Lithuania, LT
Luxembourg, LU

M
Madagascar, MG
Macau, MO
Macedonia, MK
Malaysia, MY
Malawi, MW
Maldives, MV
Mali, ML
Malta, MT
Man (Isle of Man), IM
Morocco, MA
Marshall Islands, MH
Martinique, MQ
Mauritania, MR
Mauritius, MU
Mayotte, YT
Mexico, MX
Micronesia, FM
Moldova, MD
Monaco, MC
Mongolia, MN
Montenegro, ME
Montserrat, MS
Mozambique, MZ
Myanmar (Burma), MM

N
Namibia, NA
Nauru, NR
Nepal, NP
Niger, NE
Nigeria, NG
Nicaragua, NI
Niue, NU
North Korea, KP
Northern Marianna Islands, MP
Norway, NO
Norfolk, NF
New Caledonia, NC
New Zealand, NZ

O
Oman, OM

P
Pakistan, PK
Palau, PW
Palestine, PS
Panama, PA
Papua New Guinea, PG
Paraguay, PY
Peru, PE
Philippines, PH
Pitcairn, PN
Portugal, PT
Poland, PL
Puerto Rico, PR

Q
Qatar, QA

R
Reunion, RE
Rwanda, RW
Romania, RO
Russia, RU

S
Samoa, WS
San Marino, SM
Sao Tome and Principe, ST
Saudi Arabia, SA
Salomon Islands, SB
Senegal, SN
Serbia, RS
Seychelles, SC
Sierra Leone, SL
Singapore, SG
Slovakia, SK
Slovenia, SI
Somalia, SO
Spain, ES
Sri Lanka, LK
St Barthelemy, BL
St Helena, Ascension and Tristan da Cunha, SH
St Kitts and Nevis, KN
St Lusia, LC
St Martin (French), MF
St Marteen, SX
St Pierre and Miquelon, PM
St Vinsent and Grenadinurnar, VC
Sudan, SD
South Africa, ZA
South Georgia and South Sandwich Islands, GS
South Korea, KR
South Pole (Antarctica), AQ
South Sudan, SS
Suriname, SR
Svalbard og Jan Mayen, SJ
Swaziland, SZ
Switzerland, CH
Sweden, SE
Syria, SY

T
Tajikistan, TJ
Thailand, TH
Taiwan, TW
Tanzania, TZ
Timor-Leste (East Timor), TL
Togo, TG
Tokelau, TK
Tonga, TO
Trinidad and Tobago, TT
Tunisia, TN
Turkey, TR
Turkmenistan, TM
Turks- og Caicos Islands, TC
Tuvalu, TV

U
Uganda, UG
Ukraine, UA
United Arab Emirates, AE
United Kingdom, GB
Uruguay, UY
USA, US
USA outer islands (Baker, Howland, Jarvis, Johnston, Kingman, Midway, Navassa, Palmyra og Wake), UM
Uzbekistan, UZ

V
Vanuatu, VU
Vatican, VA
Venezuela, VE
Vietnam, VN

W
Wallis and Futuna, WF

Z
Zambia, ZM
Zimbabwe, ZW