GCC Countries Switch to 12-Digit HS Codes – What You Need to Know

Previously, most GCC countries used 8-digit codes to classify goods at customs, while Saudi Arabia had already implemented 12-digit codes back in 2016. With this update, the entire region now uses the same, more detailed classification system.

Why the switch to 12 digits?

The move to a 12-digit system brings several practical advantages:

• More accurate product classification
  With extra digits, customs authorities can classify goods in more detail. This means more precise duty rates and fewer misunderstandings.
• Better trade data
  The detailed codes allow for improved tracking and analysis of trade statistics.
• Stronger trade deals
  A unified coding system helps GCC countries negotiate Free Trade Agreements (FTAs) as a single bloc.

What does this mean for your business?

If you import to or export from GCC countries, the new codes may require some adjustments on your side:

• Update your systems
  Most business software is built for 10-digit codes. You’ll likely need to update your databases, ERP systems, or customs tools.
• Get classification right
  With greater detail comes more responsibility. You must ensure your products are classified accurately to avoid mistakes or delays.
• Train your team
  Make sure your logistics or compliance staff understand the new system and how to apply the 12-digit codes properly.
• Manage more data
  More digits means more data. Having solid data management tools in place is a must.

Potential risks to watch out for

• Customs delays
  If your documentation is incomplete or incorrect, your shipment may be held at the border. That can mean missed deadlines or unhappy clients.
• Wrong tariff rates
  A misclassified product could lead to overpaying duties, fines and audits.
• Increased scrutiny
  Customs authorities are likely to check more carefully whether businesses comply with the new system, especially during the transition.
• Extra costs
  Delays and mistakes can result in storage fees, penalties, or even having to return the goods to the sender.
• Is your ERP system keeping up?!
  Chances are, your current ERP system only supports up to 10 digits per HS code. Now that GCC countries are moving to 12-digit codes, it's smart to check if your system is ready or to start planning the upgrade.

Here’s what you can do now:

1. Double-check the HS codes you currently use.
2. Update your systems and databases to handle 12-digit codes.
3. Make sure your team is trained and ready.
4. Watch for updates from Bahrain and the UAE, as they’re expected to publish their final codes soon.

Good to know

This update doesn’t increase duty rates, but some product classifications may have changed. It’s a good idea to take a fresh look at how your products are listed. Do you need help with that? We've got you.