August 2025 brought a major change to the UAE trade and logistics sector, as the old 8-digit HS codes were replaced with a new 12-digit GCC Integrated Customs Tariff system. This update is made to improve the clear classification of products, speed up the customs clearance process, and make sure all the Gulf countries follow similar trade rules.
What Are HS Codes and Why Do They Matter?
HS or Harmonized System Codes are globally accepted numerical codes used to classify traded products. These simplify customs clearance, tariff calculations, and import/export paperwork, and also ensure that the tariffs are applied correctly. Before August 2025, the Emirates used an 8-digit HS Code format, which included 6 international and 2 local digits.
With the updated 12-digit HS Code system, businesses now get more detailed product categories. This will reduce the risks of misclassification and maintain compliance with the unified GCC customs tariff system.
What’s Changing in the UAE and GCC?
- Each GCC country started using the new 12-digit HS code system on different dates.
- Qatar, KSA, and Oman started using it from January 1, 2025.
- The UAE recently implemented this new system on August 1, 2025, with a six-month transition period until January 31, 2026, to give businesses time to adjust.
Key Benefits of the 12-Digit HS Codes
- Businesses now get access to more accurate and detailed product descriptions.
- The new system unified the traded products across the Gulf region.
- This will not only simplify but also speed up customs clearance, leading to fewer disputes.
Impact on Importers, Exporters, and Logistics Providers
All the businesses in the UAE and GCC involved in import, export, freight forwarding, supply chain management, and customs brokerage are affected by this change.
Here are our key recommendations that can help businesses make the switch to the new 12-digit HS Code system as smoothly as possible:
- Work closely with your suppliers to make sure the HS codes on all commercial invoices and packing lists are updated.
- Businesses must update their product records and ERP systems with the new code system.
- Partner with a trusted customs broker or freight forwarder, like Brightway Logistics Services LLC, to confirm classifications before shipment.
- Make sure you submit customs documents that are compliant with new standards during the transition period to avoid delays in customs clearance.
Risks of Not Updating Your HS Codes
If you continue to use the outdated 8-digit HS Code system after January 31, 2026, your business might have to face serious issues:
- You may face customs clearance delays, as your shipments with outdated codes could get held for verification.
- You might face a financial burden due to hefty fines and penalties for misclassification of products.
- Shipment rejections and port holds can disrupt your entire supply chain, leading to significant losses.
How Bright Way Logistic Services Can Help
At Bright Way Logistic Services LLC, an expert team is already helping our valued clients in adapting to the new GCC tariff standards:
- HS code verification and mapping for every product category.
- Detailed customs documentation compliance checks for UAE and other GCC ports.
- We provide expert customs advice to avoid hefty penalties and unnecessary delays.
- Close coordination with global suppliers and importers to maintain full compliance.
Ready for a Hassle-Free Transition?
Contact Bright Way Logistic Services LLC today to ensure your goods move quickly through UAE and GCC customs without unnecessary delays or disruptions.