- GCC countries have switched to a 12-digit HS code system as of January 1, 2025.
- This change affects trade with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
- The new system allows for more accurate product classification and better trade data.
- A unified coding system aids in negotiating Free Trade Agreements as a bloc.
- Businesses need to update systems, ensure accurate classification, train staff, and manage more data.
- Potential risks include customs delays, wrong tariff rates, increased scrutiny, and extra costs.
- Businesses should check if their ERP systems can handle 12-digit codes and plan upgrades if necessary.
Source: pincvision.com
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
