RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/S/65/Corr.1
28 March 2000
(00-1243)
Trade Policy Review Body
TRADE POLICY REVIEW
ICELAND
Report by the Secretariat
Corrigendum
In the Summary Observations, paragraph 12, please replace third sentence with:  "The entire
agricultural tariff and some 92.5% of industrial lines were bound as a result of the Uruguay Round
negotiations;  in all some 94% of lines are bound".
In Chapter III, paragraph 1, replace second sentence with:  "The average MFN tariff rate is
low, about 4%, with some two-thirds of tariff lines duty free;  the entire agricultural tariff and some
92.5% of industrial lines were bound as a result of the Uruguay Round negotiations;  in all some 94%
of lines are bound".
In Chapter III, paragraph 13, please replace the second and third sentences with:  "All
agricultural lines and some 92.5% of industrial lines are bound, at an average rate of 18.9%
(excluding out-of-quota rates) or 29.2% (excluding in-quota rates).  Bound rates range from zero to
573% for some dairy products".
In Chapter IV, paragraph 12, third line, replace 66% with 57% and 110.7% with 109.7%.
In Chapter IV, paragraph 143, replace "cargo sharing" with "national security".
Please replace Tables III.1 and AIII.1 and Charts III.3 and III.4 with the attached tables and
charts.WT/TPR/S/65/Corr.1
Page 2
Table III.1
Summary analysis of Iceland's bound tariff, 1995-2000a
1995 2000
AnalysisBase tariff rateb
(%)Final tariff rate
(%)Range
(%)CV
(%)Standard
deviation
A.  Excluding out-quota ratesc
Total 27.7 18.9 0-563 230.7 43.6
By WTO definition
Agricultured73.5 57.0 0-563 153.7 87.6
Coffee and  tea, cocoa, sugar, etc. 57.2 43.9 0-304 106.8 46.9
Fruit and vegetables 46.1 34.2 0-283 96.5 33.0
Tobacco 33.4 16.9 9-25 29.6 5.0
Grains 80.5 65.1 0-180 130.1 84.7
Live animals and products thereof 188.6 161.7 4-422 46.0 74.4
Dairy products 457.9 395.7 40-563 43.1 170.6
Manufactures 16.7 9.7 0-175 139.2 13.5
Fish and fishery products 21.3 8.1 0-175 395.1 32.0
By sectore
Agriculture and fisheries 58.9 40.2 0-563 196.5 79.0
Mining 2.0 1.7 0-35 258.8 4.4
Manufacturing 26.3 18.0 0-536 231.1 41.6
By stage of processing
Raw materials 31.8 21.4 0-563 275.7 59.0
Semi-processed products 7.6 5.3 0-175 360.4 19.1
Fully processed products 37.7 25.7 0-536 189.9 48.8
B.  Excluding in-quota ratesf
Total 43.8 29.2 0-573 327.1 95.5
By WTO definition
Agricultured156.0 109.7 0-573 127.6 140.0
Coffee and  tea, cocoa, sugar, etc. 104.1 63.8 0-406 99.2 63.3
Fruit and vegetables 134.7 99.2 0-468 119.1 118.1
Tobacco 33.4 16.9 9-25 29.6 5.0
Grains 175.0 87.5 0-175 85.6 74.9
Live animals and products thereof 444.6 359.6 229-457 20.1 72.2
Dairy products 548.1 465.2 47-573 28.7 133.6
Manufactures 16.8 9.8 0-175 137.8 13.5
Fish and fishery products 22.2 8.5 0-175 376.5 32.0
By sectore
Agriculture and fisheries 112.9 75.6 0-563 156.1 118.0
Mining 2.0 1.7 0-35 258.8 4.4
Manufacturing 40.4 26.9 0-573 262.1 70.5
Table III.1 (cont'd)WT/TPR/S/65/Corr.1
Page 3
1995 2000
AnalysisBase tariff rateb
(%)Final tariff rate
(%)Range
(%)CV
(%)Standard
deviation
By stage of processing
Raw materials 61.2 40.5 0-563 231.1 93.6
Semi-processed products 11.9 6.7 0-252 341.8 22.9
Fully processed products 57.2 38.8 0-573 217.3 84.3
Note: CV =  coefficient of variation.
a Iceland Schedule LXII of January 1997 including GATT concessions prior to Uruguay Round (GATT 1967 and 1979).
b Base rate of duty for agricultural products subject to tariff quotas is composed of a specific rate (SDR/Kg) and an ad valorem
rate.  For such lines, the highest of the duties may apply.  Only the ad valorem  duty were used for the analysis.
c In-quota rates taken from Section I.B Column 4 of Schedule LXII-Iceland or 32% of base rate of duty.d The reduction of tariffs were implemented in six annual instalments for agricultural products (except for HS 1504 and 1603-160 5
that have a five year phasing), and five annual instalments for manufacturing products beginning 1995 and ending in 2000.
e ISIC (Rev.2) classification.f Out-quota rates taken from Section I.A Column 3b of Schedule LXII-Iceland.
Source : WTO Secretariat estimates, based on data provided by the schedule of commitments, LXII-Iceland;  and data provided by the
Icelandic authorities.WT/TPR/S/65/Corr.1
Page 4
Table AIII.1
Average bound tariffs by HS2, 1995-2000a
Bound rates
Number of lines 1995 2000
Code Description Partially Base rate Final rate Minimum Maximum
Total Bound Bound (%) (%) (%) (%)
Total/Average 7,541 7,078 61 27.7 18.9 0.0 563.0
01 Live animals 21 21 0 422.5 270.3 229.0 344.0
02 Meat and edible meat offal 118 117 1 164.2 152.9 114.6 422.0
03 Fish and crustaceans, molluscs, etc. 263 255 0 0.0 0.0 0.0 0.0
04 Dairy produce;  birds' eggs;  natural honey;  etc. 40 40 0 406.7 353.7 22.0 563.0
05 Products of animal origin, n.e.s. 39 39 0 34.6 16.0 0.0 175.0
06 Live trees and other plants;  etc. 33 33 0 40.0 39.1 0.0 51.0
07 Edible vegetables and certain roots and tubers 85 85 0 47.7 41.4 0.0 283.0
08 Edible fruit and nuts;  peel of citrus fruit or melons 63 63 0 26.6 13.3 0.0 40.0
09 Coffee, tea, maté and spices 37 37 0 55.7 27.8 0.0 40.0
10 Cereals 31 31 0 80.5 65.1 0.0 180.0
11 Products of the milling industry 68 68 0 90.8 72.5 0.0 175.0
12 Oil seeds and oleaginous fruits;  miscellaneous grains,
etc. 60 60 0 53.0 26.7 0.0 175.0
13 Lac;  gums, resins and other vegetable saps and
extracts 17 17 0 6.5 3.2 0.0 25.0
14 Vegetable plaiting materials;  etc. 11 11 0 10.4 5.4 0.0 9.0
15 Animal or vegetable fats and oils, etc. 100 99 1 51.5 31.3 0.0 119.0
16 Preparations of meat, of fish or of crustaceans, etc. 107 107 0 81.6 55.1 4.1 337.0
17 Sugars and sugar confectionery 48 48 0 38.0 25.0 0.0 175.0
18 Cocoa and cocoa preparations 35 35 0 26.9 23.6 0.0 39.0
19 Preparations of cereals, flour, starch or milk;  etc. 86 86 0 56.6 45.7 13.0 219.0
20 Preparations of vegetables, fruit, nuts, etc. 91 91 0 52.1 37.7 10.0 237.0
21 Miscellaneous edible preparations 73 73 0 43.8 33.8 0.0 82.0
22 Beverages, spirits and vinegar 176 176 0 11.2 6.2 0.0 23.0
23 Residues and waste from the food industries;  etc. 44 43 0 233.0 130.6 0.0 179.0
24 Tobacco and manufactured tobacco  substitutes 12 12 0 33.4 16.9 9.0 25.0
25 Salt; sulphur; earths and stone;  etc. 86 86 0 3.4 2.9 0.0 35.0
26 Ores, slag and ash 34 34 0 1.6 1.4 0.0 7.0
27 Mineral fuels, mineral oils and products, etc. 56 44 0 3.1 3.0 0.0 50.0
28 Inorganic chemicals; organic or inorganic compounds,
etc. 192 192 0 0.5 0.2 0.0 5.5
29 Organic chemicals 343 343 0 0.2 0.0 0.0 5.5
30 Pharmaceutical products 60 60 0 9.1 1.2 0.0 20.0
31 Fertilisers 26 0 5 0.0 0.0 0.0 0.0
32 Tanning or dyeing extracts;  etc. 72 66 0 16.8 3.7 0.0 7.0
33 Essential oils and resinoids;  perfumery, cosmetic
preparations, etc. 52 50 2 28.1 7.8 0.0 29.0
34 Soap, organic surface-active agents, washing
preparations, etc. 49 49 0 30.5 7.3 0.0 10.0
35 Albuminoidal substances; modified starches;  glues;
etc. 24 24 0 27.0 14.9 0.0 176.0
36 Explosives;  pyrotechnic products;  matches;  etc. 9 4 0 41.3 12.5 10.0 20.0
37 Photographic or cinematographic goods 54 54 0 18.9 7.9 0.0 20.0
38 Miscellaneous chemical products 73 72 1 23.9 7.3 0.0 107.0
39 Plastics and articles thereof 255 255 0 11.0 4.6 0.0 19.0
40 Rubber and articles thereof 97 84 0 16.6 9.7 0.0 35.0
41 Raw hides and skins (other than furskins) and leather 56 56 0 7.3 5.4 0.0 12.0
42 Articles of leather;  etc. 27 27 0 35.4 22.9 0.0 35.0
43 Furskins and artificial fur; manufactures thereof 31 31 0 17.9 13.0 0.0 21.0
44 Wood and articles of wood;  wood charcoal 168 163 5 16.1 10.0 0.0 35.0
45 Cork and articles of cork 19 19 0 26.7 15.7 0.0 35.0
46 Manufactures of straw, of esparto, etc. 10 10 0 47.6 22.9 0.0 35.0
47 Pulp of wood or of other fibrous cellulosic material;
etc. 20 20 0 0.0 0.0 0.0 0.0
48 Paper and paperboard;  etc. 131 114 2 18.1 11.7 0.0 35.0
49 Printed books, newspapers, pictures, etc. 31 12 9 16.2 11.5 0.0 32.0
50 Silk 13 13 0 6.0 5.1 0.0 11.0
51 Wool, fine or coarse animal hair;  etc. 51 44 0 4.3 3.8 0.0 12.0
52 Cotton 208 159 0 0.1 0.1 0.0 11.0
53 Other vegetable textile fibres;  etc. 39 29 0 4.9 4.5 0.0 13.0
54 Man-made filaments 104 104 0 3.9 3.8 0.0 9.0
55 Man-made staple fibres 194 182 0 3.4 3.4 0.0 9.0
Table AIII.1 (cont'd)WT/TPR/S/65/Corr.1
Page 5
Bound rates
Number of lines 1995 2000
Code Description Partially Base rate Final rate Minimum Maximum
Total Bound Bound (%) (%) (%) (%)
56 Wadding, felt and nonwovens; twine, cordage, ropes,
etc. 60 60 0 10.2 8.3 0.0 24.0
57 Carpets and other textile floor coverings 28 28 0 36.3 25.5 18.0 28.0
58 Special woven fabrics;  tufted textile fa brics;  lace;  etc. 48 48 0 11.6 9.6 0.0 21.0
59 Impregnated, coated, covered or laminated textile
fabrics;  etc. 26 26 0 13.2 10.0 0.0 24.0
60 Knitted or crocheted fabrics 18 18 0 10.7 9.9 7.0 12.0
61 Articles of apparel and clothing accessories, knitted or
crocheted 132 132 0 28.7 19.8 8.0 21.0
62 Articles of apparel and clothing accessories, not knitted 126 126 0 30.2 20.6 12.0 21.0
63 Other made up textile articles; sets; worn clothing, etc. 98 98 0 26.0 18.6 0.0 25.0
64 Footwear, gaiters and the like;  parts of such articles 56 56 0 31.1 21.0 0.0 35.0
65 Headgear and parts thereof 11 11 0 38.0 23.6 6.0 35.0
66 Umbrellas, sun umbrellas, walking-sticks, etc. 7 7 0 33.6 23.6 18.0 31.0
67 Prepared feathers and down and articles thereof 8 8 0 55.6 28.1 24.0 35.0
68 Articles of stone, plaster, etc. 80 80 0 35.0 19.7 0.0 35.0
69 Ceramic products 29 29 0 35.5 20.2 0.0 35.0
70 Glass and glassware 78 74 4 36.8 21.5 0.0 35.0
71 Natural or cultured pearls, precious or semi-precious
stones, etc. 60 60 0 16.2 9.6 0.0 35.0
72 Iron and steel 192 192 0 2.0 0.7 0.0 5.0
73 Articles of iron or steel 149 142 0 18.7 11.1 0.0 35.0
74 Copper and articles thereof 76 76 0 14.1 8.6 0.0 35.0
75 Nickel and articles thereof 21 21 0 12.4 7.5 0.0 35.0
76 Aluminium and articles thereof 59 57 0 19.4 11.8 0.0 35.0
78 Lead and articles thereof 17 17 0 6.6 4.9 0.0 24.0
79 Zinc and articles thereof 14 14 0 13.7 8.0 0.0 21.0
80 Tin and articles thereof 11 11 0 8.3 5.2 0.0 29.5
81 Other base metals; cermets; articles thereof 36 36 0 1.9 1.4 0.0 24.0
82 Tools, implements, cutlery, spoons and forks, etc. 69 69 0 23.2 13.0 3.0 35.0
83 Miscellaneous articles of base metal 39 37 1 21.5 15.2 0.0 35.0
84 Nuclear reactors, boilers, machinery, etc. 622 604 6 11.5 6.3 0.0 35.0
85 Electrical machinery and equipment and parts thereof 418 390 4 28.9 19.7 0.0 35.0
86 Railway or tramway locomotives, rolling-stock and
parts thereof 24 24 0 0.3 0.3 0.0 6.0
87 Vehicles other than railway or tramway rolling-stock,
etc. 189 21 11 28.5 21.1 0.0 35.0
88 Aircraft, spacecraft, and parts thereof 15 0 0 0.0 - - -
89 Ships, boats and floating structures 32 23 0 7.3 5.7 0.0 14.0
90 Optical, photographic, cinematographic, instruments
etc. 170 168 0 24.9 14.2 0.0 35.0
91 Clocks and watches and parts thereof 56 53 1 33.2 22.7 17.0 35.0
92 Musical instruments; parts and accessories of such
articles 25 25 0 43.2 30.2 10.5 35.0
93 Arms and ammunition; parts and accessories thereof 23 21 1 45.8 29.5 4.0 35.0
94 Furniture; bedding, mattresses, etc. 64 57 7 40.0 25.4 0.0 35.0
95 Toys, games and sports requisites; parts and
accessories thereof 51 50 0 45.0 27.8 4.0 35.0
96 Miscellaneous manufactured articles 55 55 0 49.4 27.1 0.0 35.0
97 Works of art, collectors' pieces and antiques 7 7 0 6.8 3.9 0.0 27.6
- Not aplicable.
aB a s e d  o n  ad valorem  bound rates only excluding out-of-quota rates.
Source : WTO Secretariat estimates based on data provided by the Icelandic authorities.WT/TPR/S/65/Corr.1
Page 6
0102030405060
25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97Chart III.3
Tariffs on manufactured products b y HS cha pter, 1995-2000
Average 1999
applied rate 
(2.5%)
HS       Description
25         Salt; sulphur; earths and stone, etc.
26         Ores, slag and ash27         Mineral fuels, mineral oils, etc.28         Inorganic chemicals; organic or 
             inorganic compounds of precious
             metals, etc.29         Organic chemcials30         Pharmaceutical products31         Fertilizers    32         Tanning or dyeing extracts etc. 33         Essential oils and resinoids;             perfumery, cosmetic or toilet             preparations34         Soap, organic surface-active              agents washing prep., etc.    35         Albuminoidal substances;             modified starches; glues, etc.36         Explosives; pyrotechnic products;             matches, etc37         Photographic or cinematographic              goods38         Miscellaneous chemical products39         Plastics and articles thereof40         Rubber and articles thereof41         Raw hides and skins and leather42         Articles of leather, etc.43         Furskins and artifical fur; 
             manufactures thereof
44         Wood and articles of wood, etc.45         Cork and articles of cork46         Manuf. of straw, of esparto, etc.   47         Pulp of wood or of other              fibrous cellulosic materialHS       Description
48         Paper and paper board, etc.
49         Printed books, newspapers, etc.50         Silk51         Wool; fine or coarse animal
             hair, etc.
52         Cotton53         Other vegetable textile fibres 54         Man-made filaments   55         Man-made staple fibres 56         Wadding, felt and non-wovens;             special yarns; twine, cordage, etc.57         Carpets; other textile floor             coverings58         Special woven fabrics; lace, etc.59         Impregnated, coated, covered or             laminated textile fabrics, etc.60         Knitted or crocheted fabrics    61         Articles of apparel and clothing             accessories, knitted or crocheted62         Articles of apparel and clothing             accessories, not knitted, etc.63        Other made-up textile articles;             sets, worn clothing, etc.64         Footwear, gaiters, etc.65         Headgear and parts thereof66         Umbrellas, walking-sticks, etc. 67         Prepared feathers and down, etc.
68         Articles of stone, plaster, etc.
69         Ceramic products70         Glass and glassware71         Natural or cultured pearls,             precious or semi-precious             stones, precious metals, etc.HS       Description
72         Iron and steel
73         Articles of iron and steel74         Articles of iron and steel75         Nickel and articles thereof
76         Aluminium etc. 
77         unassigned chapter.78         Lead and articles thereof   79         Zinc and articles thereof 80         Tin and articles thereof81         Other base metals, etc.82         Tools, implements, cutler             spoons and forks, etc.83         Misc. articles of base metals84         Nuclear reactors, boilers,             machinery, etc.85         Electrical machinery and             equipment, etc.86         Railway or tramway              locomotives, etc.87         Vehicles other than railway             or tramway rolling-stock; etc.88         Aircraft, spacecraft, etc.89         Ships, boats, etc.90         Optical, photographic, etc.              apparatus91         Clocks and watches, etc.92         Musical instruments, etc.
93         Arms and ammunition, etc.
94         Furniture, bedding, etc.95         Toy, games, etc.96         Miscellaneous manuf.              articles97         Works of art, antiques, etc.
Base rate, 1995Applied MFN 1999
Final rate, 1999-2000
Source:  WTO Secretariat calculations, based on data provided by the Icelandic authorities; and Schedule LXII - Iceland, 1997.Note:      No entries for HS Chapter 77. In manufacturing the bound 1999 rate is the final rate.Per centWT/TPR/S/65/Corr.1
Page 7
Chart III.4                                             
Tariffs on agricultural products by HS chapter, 1995-2000
050100150200250300350400450500
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Per cent
Note:
Source :  Average 1999
applied rate
 (9.3%) 
HS
01
0203
04 
0506070809
10
11121314
15
1617181920
21
222324Description
Live animals
Meat and edible meat offalsFish and crustaceans, mollusks and other aquatic invertebrates
Dairy produce, birds eggs, natural honey, edible products of animal origin  
Products of animal origin, n.e.s.Live trees and other plants;  bulbs, roots and the like;  cut flowersEdible vegetables and certain roots and tubersEdible fruit and nuts;  peel of citrus fruits or melonsCoffee, tea, mate and spices
Cereals
Products of the milling industry;  malt;  starches;  wheat glutenOil seeds and oleaginous fruits;  miscellaneous grains, seeds and fruitLacs;  gums, resins and other vegetable saps and extractsVegetable plaiting materials;  vegetable products n.e.s.
Animal or vegetable fats and oils and other cleavage products;  prepared edible fats; etc.
Preparations of meat, or fish or of crustaceans, molluscs or other aquatic invertebratesSugars and sugar confectioneryCocoa and cocoa preparationsPreparations of cereals, flour, starch or milk;  pastrycooks' productsPreparations of vegetables, fruit, nuts or other parts of plants
Miscellaneous edible preparations
Beverages, spirits and vinegarResidues and waste from the food industries;  prepared animal fodderTobacco and manufactured tobacco substitutesBase rate, 1995Applied MFN 1999
Final rate, 2000
The HS definition of agriculture is different from that of the WTO.   
WTO Secretariat calculations, based on data provided b y the Icelandic authorities; and Schedule LXII - Iceland, 1997.             
__________