The Minister of Finance is the chief executive of customs affairs in Iceland. As stipulated in the Customs Act the Directorate of Customs is responsible for general customs administration in the capacity of the Minister. The Minister supervises that the Directorate of Customs carry out their duties. The Icelandic customs territory covers the whole country, islands and skerries that belong to the country as well as the 12 nautical miles that comprise the territorial waters around the country as it is defined according to the first article of Act no. 41/1979 on Territorial Waters, Economic Zone and Continental Shelf. In addition, the airspace above the aforementioned area is also included in the customs territory.
The country is one customs district and is administered by the Directorate of Customs.