Customs Duties on Imported Potatoes May be Suspended Skip to content

Customs Duties on Imported Potatoes May be Suspended

Customs duties on imported potatoes will be likely be suspended from May 3 until August 11, RÚV reports. The Ministry of Industries and Innovation has temporarily lifted these duties because of a shortage of high-quality domestic potatoes. Iceland’s current potato crop suffered after a wet and cold summer last year.

Local farmers and the Icelandic Federation of Trade have been calling for a suspension of import duties for the last three weeks, saying that that even the Sales Association of Vegetable Farmers (SFG) has supported the idea. But these petitions had been denied by the Ministry of Industries’ Advisory Committee on the Import and Export of Agricultural Products, which said that duties could only be suspended in the event of a shortage of domestic product.

Per the provisions of the laws governing agricultural products, there can only be a suspension of import duties when two leading domestic distributors and two key domestic producers cannot keep up with demand. Since technically, there are enough Icelandic potatoes, the advisory committee said there shouldn’t be a suspension of customs duties. Local retailers were unhappy with this interpretation, saying that it missed the point. “We have plenty of potatoes,” Gréta María Grétarsdóttir, CEO of the Krónan supermarket chain remarked. “But the quality of Icelandic potatoes is not as good as Icelanders are accustomed to…these are not the first-class Icelandic potatoes that Icelanders are used to getting.”

After reevaluating of the situation on Tuesday, the Advisory Committee has reversed its position. The proposed suspension of customs duties was presented to domestic producers, who were given four days to respond. However, according to Ólafur Stephensen, the CEO of The Icelandic Federation of Trade, there are two Icelandic potato farmers who “are holding the potato market hostage,” so whether the suspension will actually go into effect is still an open question.


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