The Directorate of Customs in Iceland was established in 1929. From the beginning, the main service functions have remained the same. Firstly, to control import, transit and export, and secondly, the collection of duties, taxes and various state revenue. The Directorate of Custom´s main objectives are to strengthen control, hinder importation of illegal goods, ensure correct levy of import charges and improve collection results.
The administration of customs and internal revenue falls within the jurisdiction of the Minister of Finance, who is the head of customs affairs in the country. From January 1. 2009 the Directorate of Customs serves the whole of Iceland in one customs district.
The Directorate of Customs has approximately 250 full-time employees working in several departments in different places throughout the country.