How to Get an AD Code for Smooth and Seamless Exports?

Whether you are an aspiring entrepreneur or locally recognized seller, or an already well-established exporter, expanding your business or services to the global market is the dream of every seller. With regular government promotion and support of exports, India has raised the global share of exports in the last few years. Thus, thousands of businesses are exporting from India and reaching new international customers. If you are already an exporter or want to become one, then you must know the importance of obtaining the critical documents and a few compliance requirements essential for smooth exports. In this, one such document required at the time of customs clearance is AD Code (Authorized Dealer Code).   

Well, before exporting your products, you also need to obtain an Import Export Code (IEC) and other documents such as the shipping bill and the bill of lading. This blog post will discuss the AD code, its registration process and its importance.   

What is AD Code?  

Basically, AD code is a 14-digit numerical code which is given by the bank where your current business account is there. For your products to be cleared in customs, it is essential for you to register for AD code in each and every port it passes through. There will be a Customs House Agent (CHA) who will ask the exporter to mention the AD code for the customs clearance of that particular port. For instance, if your shipping consignment is from Mumbai and Goa, you need to register the AD code for both ports separately.   

The AD Code has lifetime validity and is printed on the back side of the bank’s letterhead after you have successfully registered for the IEC code (Import-Export Code) by the Directorate General of Foreign Trade (DGFT).   

Importance of AD Code in the Export Process  

An AD code is absolutely crucial for the seamless export process because of the following reasons: –  

  • A shipping bill is one of the mandatory documents required for exports custom clearance. It comprises important information about the product, final destination country, port from where it is shipped and so on. But without AD code registration, the exporter cannot generate the shipping bill from ICEGATE (Indian Custom’s Electronic Gateway) platform.   
  • There are several government benefits for exporters in India. To avail of these, including duty rebates, GST (Goods and Services Tax), refunds etc, you just need a valid AD code. With the registration, customs will help you to avail of the benefits, which will be directly credited to your bank account.   

How can Exporter Register for AD code?  

As previously mentioned, you will have to register the AD code in every port from where your products are being passed on. Like, if you are exporting products from Gujarat, you can clear the customs from Mundra, but you need separate and unique AD codes.   

For registration of the AD code, exporters must undergo the following steps: –  

  • Firstly, you must approach your bank where your business bank account is there. Also, the bank must be the authorized dealer of forex or which deals in foreign currency.   
  • Then, write a letter to the bank branch manager requesting for AD code in the prescribed format given by the bank.   
  • The bank will further process your application and give the AD code document with its letterhead format prescribed by DGFT.   
  • Once you receive the AD code from the bank, you can register at the port from where your consignment will be shipped along with other documents to the Customs House Agent (CHA).   
  • After successful registration of AD code at all the ports, your information about the shipping consignments will appear on the ICEGATE website.   

Checklist of Documents Required for AD Code Registration  

For your ease, here is the list of documents required at the time of AD code registration. P.S. Save it for later.   

  1. GST registration  
  2. Import Export Code  
  3. Bank statements  
  4. IT returns of the company or self and partners of the last three years  
  5. Company’s PAN card  
  6. Business Partner(s) PAN, Aadhar Card and passport, if any.   
  7. Export House Certificate (optional)  

The requirements of the documents mentioned above may change as per the situation. CHA will receive the documents, and from there onward, they will submit those documents to customs. This process will usually take from 3 to 4 working days.   

Steps to Register Your AD Code on ICEGATE Portal  

  1. Log in to the official ICEGATE website with your registered username and password.  
  2. Then, click on the Bank account management on the left panel.   
  3. The Export Promotion Bank Account Management page opens up, where you have to click on AD code registration.   
  4. Select the AD code registration and click on submit. If the exporter has not registered the locations earlier, you can click the “Add account option” at the bottom of the dashboard to add the locations.   
  5. Fill in the required details, such as the AD code and bank name. Furthermore, upload the necessary documents as mentioned on the website.   
  6. After uploading your documents successfully, an Image Reference Number (IRN) and Document Reference Number (DRN) are generated.   
  7. Enter all valid input details, and click on Save changes. The six-digit OTP will be generated and sent to your mobile number and registered email id.   
  8. Once the OPT is verified, the bank account modification request is submitted to ICEGATE. So, once your bank account request is approved by ICEGATE, the bank account details will start reflecting on AD code dashboard.   

Export from India with Amazon Global E-commerce Exports Program  

Thanks to ecommerce export programs like Amazon Global Selling, it’s now easier than ever to expand your business across the globe. A seller who was earlier catering to a limited customer base in his region or even nationally can now set sight on the global market. With your AD code and other documents like IEC in hand, you can start exporting from India with ease. So, register your business with Amazon global selling today to extend your business with over 300 million customers across the globe.