Effective Date: August 1, 2025
Source: TFI
Introduction
The Gulf Cooperation Council (GCC) has officially implemented a 12-digit HS code system, replacing the previous 8-digit format. This change, approved under Cabinet Resolution No. (119) of 2024, is based on the World Customs Organization’s (WCO) 2022 Harmonized Commodity Description and Coding System.
The move is designed to:
- Improve accuracy in product classification
- Minimize discrepancies at customs
- Ensure consistency across GCC states
- Strengthen the GCC’s role as a global trade hub
Why the Shift from 8 Digits to 12?
- Greater Detail: Expands product classification by material type, usage, and form.
- Harmonization: Aligns customs processes across all GCC member states.
- Trade Efficiency: Creates smoother cross-border trade through standardization.
What’s New in the Tariff?
- Number of Codes Doubled: From ~7,809 to 13,450+ codes.
- New Inclusions: HS codes added for previously unclassified items.
- Subdivisions: Existing categories broken down into more detailed classifications.
Phased Implementation Plan
Phase 1 (Aug 2025 – Jan 2026):
- 12-digit codes for GCC-bound shipments
- Old 8-digit codes still run in parallel
Phase 2 (Feb – Jul 2026):
- Expansion to imports from Free Zones & Customs Warehouses into the mainland
Phase 3 (Aug 2026 – Jan 2027):
- Full application to imports from the rest of the world into the UAE
Phase 4 (From Feb 2027):
- Coverage extends to temporary trade flows, including re-exports & temporary admissions
Implications for Businesses
✔ Compliance & Clarity
- More precise codes reduce disputes and align with global standards
✔ System Upgrades Needed
- ERP, inventory, and customs systems must be updated
✔ Risk of Non-Compliance
- Using outdated codes after the transition may cause delays, fines, or shipment rejection
The Six-Month Transition Period
- Duration: August 1, 2025 – January 31, 2026
- Businesses may use either 8-digit or 12-digit codes
- Designed to:
- Allow ERP & system updates
- Retrain staff
- Coordinate with global partners
- Mandatory Compliance: From February 1, 2026, only 12-digit codes will be accepted
Preparing for the Future
Experts recommend businesses to:
- Audit product catalogs and map them to the new HS codes
- Coordinate with suppliers & logistics partners
- Train staff on classification changes
- Track Dubai Customs’ phased rollout closely
A Step Toward Smarter Trade
The adoption of the 12-digit HS code is more than a technical upgrade. It demonstrates the UAE’s commitment to:
- Trade transparency
- Regional harmonization
- Operational excellence
By enhancing compliance, improving data accuracy, and simplifying cross-border trade, the new system will strengthen Dubai’s position as a global logistics powerhouse.
