20.20. The metal industry, which is a major industry in Iceland, imports raw material to be processed and exports goods after processing.[9] Few companies are involved, and importers are obligated to indicate on the customs declaration whether the good imported is for processing. Raw material imported for manufacture is exempted from excise tax and duties (according to customs regulations). This provides an incentive for enterprises to identify goods for processing on the import declaration. Some enterprises buy the raw material from abroad and sell the finished product to abroad (change of ownership); others make agreements with foreign enterprises to process raw material into finished products; the foreign enterprises provide the raw material and sell the good after processing (no change of ownership). There is a high prevalence of goods for processing inIceland’s trade data for goods and services.
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[9] See A. Ó. Svavarsdóttir, “New manuals of trade in goods and trade in services: Goods for processing in Iceland” (Statistics Iceland), presentation at the Global Forum on Trade Statistics, Geneva, 2-4 February 2011.