Motor vehicles

1. Motor vehicles

2. Motor vehicles – overview • On 31 December 2009, 296.714 motor vehicles were registered in Iceland (population in Iceland: appr. 315.000 people). • Iceland depends mostly on import of motor vehicles, very limited construction of motor vehicles in Iceland. • The Icelandic Road Traffic Directorate is the authority responsible for administering rules on motor vehicles under the auspices of the Ministry of Transport. • After the entry into force of the EEA Agreement on 1 January 1994, EC rules in the field of motor vehicles were applicible in Iceland.

3. National legislation on motor vehicles • Art. 60 of the Road Traffic Act No. 50/1987 stipulates, that “the Minister regulates design and equipment of motor vehicles and rules on safety and protection equipment for drivers and passengers, and also what inscriptions or marks should be put on motor vehicles for the purpose of registration and control/inspection. • Regulation No. 822 of September 2004 on vehicle design and equipment is enacted pursuant to various provisions of the Road Traffic Act, mainly Art. 60.

4. EU legislation on motor vehicles • Directive 70/156/EEC on motor vehicles is based on the Old Approach method with most of the detailed requirements in the Directive and subsequent amendments (appr. 50 of them). • Iceland has fully implemented Directive 70/156/EEC in Reg. 822/2004, giving preference to EC type approval of vehicles based on the Directive.

5. Import of motor vehicles from the US • Due to close trade cooperation with the United States, motor vehicles have been imported from the US and to some extent also from Canada. • As US cars have been considered economical and well suited for Icelandic conditions, this practice has been welcomed. • According to information gathered from the Road Traffic Directorate in Iceland, Council Directive No. 92/53/EEC (amending Dir. 70/156/EEC) opens up the possibility for approving of US and Canadian cars in Iceland (M1 cars).

6. Strenghtening the rules on the import of vehicles • In the past, Icelandic authorities have allowed import of damaged/accident motor vehicles to Iceland from the US. • As of 1 January, 2010 it will be prohibited to import those motor vehicles into Iceland. • If an Icelandic citizen moves to Iceland from abroad, he/she can import the “family” car, regardless of present requirements. Iceland plans to change this system as Norway has done recently.

7. Framework Directive 2007/46/EC • Directive 2007/46/EC of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles (repealing Dir. 70/156/EEC) has not yet been transposed by Iceland. Norway has asked for an adaptation text which has led to delay in incorporating the Directive into the EEA Agreement. • According to the Directive, stricter rules will apply as regards EC type approval of vehicles. Iceland plans to revise the current Regulation on Design and Equipment to adjust it to Directive 2007/46/EC.

8. Questions No. 1 & 2 • Question No. 1: As participant in the EEA Agreement, has Iceland ever not recognized an EU approval (marking, certificate of conformity)? • Answer: No, that has never happened. • Question No. 2: With regard to the whole EU acquis on motor vehicles, motorcycles, agricultural tractors and their trailers and components, does Iceland envisage any difficulty for meeting its obligations from the date of its Accession to the EU? • Answer: No, by that time Iceland will have implemented Directive 2007/46/EC fully. Revision of Regulation 822/2004 on motor vehicles will start soon based on Dir. 2007/46/EC.

9. Question no. 3 • With regard to the UNECE 1958 agreement, does Iceland intend to become a party to this Agreement? If so, by when? Does Iceland intend to accede to any Regulation to which EU Member States have not acceded? If so, to which ones? • Answer: Iceland intends to to become a party to the UNECE 1958 Agreement as well as the 1998 Agreement, probably before end of 2011. • As Iceland is not a party to the 1958 Agreement, it would be unrealistic to consider directly acceding to a Regulation based on the Agreement.

10. UN Conventions motor vehicles • Iceland has so far not ratified The 1968 Vienna Convention on Road Traffic, nor the Convention on Road Signs and Signals. • Iceland has so far not acceded to the UNECE 1958 Agreement which forms a legal framework whereby participating countries agree on a common set of UNECE Regulations. The same goes for the 1998 Agreement on World Forum for Harmonization of vehicle Regulations which is becoming the most important player as regards motor vehicles in cooperation with Working Party 29. • But, Iceland has implemented the UNECE 1948 Convention and the 1958 Convention on vehicles.  

11. Future development • New Road Traffic Act will most likely take effect in Iceland as of 1 January 2012. • It is not certain when revised Regulation on Design and Equipment of vehicles will probably take effect, probably some time next year. • Merger of Transport Agencies in Iceland will also most likely be effective as of 1 January 2012. An administrative agency will replace the the Road Traffic Directorate, the Icelandic Road Administration, Icelandic Civil Aviation Administration, and the Icelandic Maritime Administration. This will surely strenghten the combined administrative capacity of these agencies and the administrative structure as a whole. The new agency will also be in charge of policy making in the different transport sectors.