Starting January 1, 2025, United Arab Emirates implements a new 12-digit Harmonized System (HS) Code for customs tariffs — one of the most significant customs updates in recent years. This change will reshape how goods are classified, cleared, and traded, aligning UAE more closely with GCC partners and global trade standards.
From August 1, 2025, UAE began a six-month transition period during which both 8-digit and 12-digit HS codes will be accepted. After this period, the use of the 12-digit code will become mandatory for all foreign trade activities in UAE. This trial phase gives companies time to update their internal systems, adapt to the new standard, and avoid business disruptions.
Until now, the UAE has used an 8-digit HS code for product classification. This format lacked the detail needed for precise duty assessments and accurate descriptions. The 12-digit HS code introduces additional levels of detail, specifying factors such as material composition, intended use and unique product characteristics. This enhanced precision will reduce errors, improve compliance, and speed up customs clearance.
This reform is a strategic upgrade to UAE’s customs framework. The key benefits for businesses include:
Improved classification accuracy – fewer disputes over duties and reduced risk of errors;
Regional harmonization – full alignment with other GCC countries, enabling smoother regional trade;
Enhanced trade data – improved statistics for policymaking and market analysis.
To avoid delays, incorrect duty payments, or even shipment rejections, WELLGO recommend that businesses should act now:
Review your product catalog and confirm the correct 12-digit codes.
Update ERP and inventory systems to reflect the new codes.
Coordinate with suppliers to ensure invoices and shipping documents include the updated codes.
Amend Certificates of Origin (COO) to match the new classification.
Train staff on the changes to prevent costly mistakes.
The introduction of the 12-digit HS Code is part of a broader vision to reinforce UAE’s role as a global logistics hub. This initiative demonstrates a unified national effort to enhance competitiveness, attract foreign investment, and upgrade trade infrastructure. Businesses which adapt early to the updated requirements will gain lasting advantages in efficiency, compliance, and profitability.
If your company needs assistance in adopting the new HS codes the WELLGO team is ready to help. Contact us today to ensure a smooth, compliant, and disruption-free transition.