Why the Shift from 8 Digits to 12?

The new structure introduces greater detail and accuracy in product classification. By expanding from eight to twelve digits, customs authorities can now identify goods with finer distinctions, such as material type, usage, and variations in form. 

The new GCC HS Code is designed to harmonize customs processes across all member states, ensuring policy-level alignment while helping stakeholders adapt to the 12-digit system for more seamless cross-border trade.

What’s New in the Tariff

The number of tariff codes has nearly doubled, rising from around 7,809 to more than 13,450. This expansion includes newly inserted HS codes that cover items previously unclassified, as well as subdivided codes that break down existing categories to include more specific products and processes.

Phased Implementation Plan

To ensure a smooth transition, Dubai Customs has embraced a phased rollout:

• Phase 1 (Aug 2025 – Jan 2026): 12-digit codes apply to declarations for GCC-bound shipments, while the old 8-digit system runs in parallel.

   

• Phase 2 (Feb – July 2026): Expansion to imports from Free Zones and Customs Warehouses into the mainland.

   

• Phase 3 (Aug 2026 – Jan 2027): Full application to all imports from the rest of the world into the UAE.

   

• Phase 4 (From Feb 2027): Coverage extends to temporary trade flows, including re-exports and temporary admissions.

Implications for Businesses

For importers and exporters, the change represents both an opportunity and a challenge.

• Compliance & Clarity: More precise codes mean fewer disputes and better alignment with global trade rules.

   

• System Upgrades Needed: Businesses must update ERP, inventory, and customs systems to accommodate the 12-digit codes.

   

• Risk of Non-Compliance: Using outdated codes beyond the transition period may lead to delays, fines, or rejection of shipments.

The Six-Month Transition Period

To ease the shift from the old 8-digit HS code system to the new 12-digit format, Dubai Customs has introduced a six-month transition period starting August 1, 2025. During this phase, businesses can use either the old or the new codes, allowing them the flexibility to update systems, retrain staff, and coordinate with global partners without disruption. 

This grace period is designed to minimize trade delays and give stakeholders time to adapt to the expanded tariff schedule. However, starting February 1, 2026, the use of the 12-digit HS codes will become mandatory, making it essential for companies to complete the transition within this window to avoid penalties or clearance issues.

Preparing for the Future

The move to a 12-digit HS code structure will affect every step of the supply chain—from how goods are declared and cleared at the border to how companies manage their internal product catalogs and ERP systems. This is why industry experts are urging businesses to take proactive steps to align their operations with the new requirements. Doing so will ensure a smooth transition during the phased rollout and prevent delays, penalties, or compliance risks.

Key recommendations include:

1. Audit product catalogs and map them to the new codes
2. Coordinate with suppliers and logistics partners
3. Train staff on classification updates
4. Monitor Dubai Customs’ phased rollout closely

A Step Toward Smarter Trade

The introduction of the 12-digit HS code is more than just a technical update—it reflects the UAE’s commitment to trade transparency, regional harmonization, and operational excellence.

As Dubai continues to position itself as a global logistics powerhouse, the updated tariff system is expected to strengthen compliance, improve data accuracy, and enhance the ease of doing business across borders.

How Can TFI Help?

At TFI, we understand the complexities that come with regulatory changes like the 12-digit HS code system. Our customs and compliance experts are here to support your business with:

• Mapping and updating HS codes
• Reviewing product classifications
• Ensuring seamless customs clearance under the new framework
• Minimizing compliance risks and avoiding shipment delays

If you need guidance on navigating this transition, our team is ready to help you stay compliant and keep your cargo moving without disruption. Get in touch with our experts now!