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For starting any business of Import and Export in India, one must have two Registrations as per the Indian Government, out of which one is IEC (Import-Export Code) and another one is AD (Authorised Dealer) Code Registration.

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NATURE OF AUTHORISED DEALER (AD) CODE REGISTRATION

AD Code is a 14-digit number issued for the customs clearance of the goods. This AD Code aims to ensure that the foreign currency used for transactions in an exporter’s current account comes from a legal channel.

AD Code is provided by the bank where he holds the business or current account. AD Code is printed on the bank’s letterhead in the set format as prescribed by the Directorate General of Foreign Trade (DGFT). The bank which is authorised to grant AD Code must deal with foreign currency. Registering AD Code at the port where goods are sent for custom clearance is mandatory. Without port registration of AD Code, the shipping bill number will not be generated, which is a must for the export of goods.

Once an AD Code is registered against an Import-Export Code at any port, then the same can be used for all ports. And there is no requirement for separate registration at other ports for filing of documents.

Any change or amendment in a particular AD Code account details is to be done at that port of registration only; the post selected by the Import Export Code (IEC) at the time of making the application for registration.

Multiple AD Codes and associated accounts can be registered against an Import-Export Code (IEC). All multiple AD Codes must register in the system at any of the ports. There can be different ports of registration for different AD Codes.

For existing AD Codes and associated accounts registered for an IEC, the customs port where the last shipping bill with a specific AD Code is filed is deemed a port of registration for that AD Code in the system.

The details of the port of registration for each registered AD Code against an IEC are made available on the ICEGATE.

WHY IS AD CODE REGISTRATION REQUIRED ?

AD Code Registration is a must for many reasons in carrying out export business. The significant reasons are as follows:-

Exporters who want to export goods from India must register the AD Code.
A Shipping Bill is one of three documents that must be submitted for export customs clearance. Without an AD Code registration, you cannot produce a Shipping Bill on Icegate, Indian Customs’ electronic data exchange platform.
AD Code Registration allows you to transfer credit to the trader’s current account directly.
Any Government advantages you want to avail of, for example, duty rebates and exemptions, GST (Goods and Services Tax) refunds, and so on, are credited straight to your current account if you have an AD Code registered with customs.
Registering or submitting the AD code in each & every port from where you want to export shipment is a mandatory requirement.
When exporting goods, exporters must provide the IE Code as well as the AD Code.
Furthermore, while receiving money from Abroad, Banks can demand the AD code of the business/individual.

BENIFITS OF AD CODE

Following are the various benefits of obtaining AD Code:

It assists in developing business and reaching out to a bigger market at the global level. It allows the business to flourish at a rapid pace.
An AD Code is valid for as long as the entity survives. In other words, the AD Code has life-long validity. As a result, if you register for AD Code, you will never have to worry about renewing it.
Obtaining an AD Code is a one-time process. It means there is no requirement to submit any returns.
The AD Code is valid till the existence of the business of its holder. So, there is no requirement to renew it.
AD Code Registration will assist you in developing your business and reaching out to a broader market on a worldwide scale, allowing your company to flourish at a rapid pace.
Based on the AD Code, the businesses receive multiple incentives for their imports or exports from the Directorate General of Foreign Trade, Export Promotion Council, Customs and several other Government Departments.
It is one of the crucial documents to be submitted for export customs clearance. Without it, one cannot produce a shipping bill on ICEGATE, the Indian Customs Electronic Data Exchange Platform.
AD Code allows transferring credit to the trader’s current account directly.
Any Government advantages one wishes to avail of are credited straight to his current account if he has an AD Code registered custom.

DOCUMENT REQUIRED FOR AD CODE REGISTRATION

Following are the documents that you need to have for the AD Code.

Bank’s AD Code authorization letter in Annexure-A (original)
Exporter’s letter on letterhead requesting/authorizing the registration of AD Code
Customs broker’s letter on letterhead requesting AD Code registration
GST registration certificate
Import-Export Code License
PAN Card
Export House Certificate (if any)
Manufacturing Licence (if any)
PAN, Aadhaar and Voter ID/Passport of the owners

FAQs FOR AD CODE

Q1. How do I get an AD code?

To obtain an AD Code, you will have to write a letter to the bank requesting it to issue the same against your business’s account. You will have to address this request to the branch manager in the prescribed format.

Q2. Is AD code mandatory for import?

One is IEC Registration, and another one is AD Code Registration. Without these two registrations, you cannot start an import-export business in India. The AD Code is required for customs clearance of your Goods. An AD (Authorized Dealer) Code is a 14-digit number issued.

Q3. Is AD code unique?

The full form of the AD code is the Authorised dealer code. It is a unique 14 digits number issued by the bank with which the exporter maintains a current bank account.

Q4. Can I export without AD code?

An AD code is mandatory for exports from India. Is AD code different for each branch? AD code is different for each branch of a bank. It is assigned by the Reserve Bank of India (RBI) to each authorised branch of various banks.

Q5. What is AD code in Icegate?

Authorized Dealer Code Bank Account Registration Advisory. The advisory covers the registration of Bank Account(s) on ICEGATE for collection of. export incentives and the declaration of banks used for making foreign remittances.

Q6. Can I import without IEC?

The Importer-Exporter Code (IEC) is a crucial business identification number that is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT.