Procedure to Apply for AD Code & Register it with Customs

An Authorised Dealer Code (AD Code) is a 14-digit numerical code provided by a bank with which your business has a current account. You will need to register an AD Code at every port from where your goods are cleared by customs. At the time of customs clearance, your Customs House Agent (CHA) will ask you to provide the AD Code for that particular port.

Importance of AD Code in Exports

A registered AD Code for export is essential for customs clearance. If you do not have one, you will not be able to generate your shipping bill number, which is compulsory for customs clearance. The EDI system of the IceGate portal will not allow the generation of the shipping bill in the absence of a registered AD Code.

If you are eligible for government benefits, an AD Code registration with the customs enables you to get the same directly credited into your current account. Therefore, you should register for the AD Code at your customs port(s) once you obtain your Import Export Code.

Also Read : Features of AD Code

How to apply for AD Code?

As mentioned, you will need to register your AD Code with every port from which you intend to export your goods. For example, if you are an exporter from Gujarat, you will need separate AD Codes if you want to clear customs from both Mundra and Ankleshwar.

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. The bank will then issue a 14-digit AD Code on its letterhead in the format prescribed by the Directorate General of Foreign Trade (DGFT).

The procedure to apply for an AD Code is as follows:

• Go to a Bank which deals in foreign currency or is an authorized dealer for forex
• Apply for an AD Code with the Bank in the format given below
• Bank will further process the application an issue the AD Code
• The exporter then needs to register the AD Code with the CHA House Note : __ For instance, an exporter is registered with the port in Mumbai for his shipping consignment, he needs to do it only once. But if his next consignment is from Gujrat, he needs to register with the CHA house of that port as well.)
• Once the registration is processed - all the basic information of the exporter and his shipping consignments will appear on the ICEGATE website.

AD Code - Format

If you are an exporter applying for an AD Code, you could follow the format below:

Format of bank’s AD Code letter:

Also Read : Pro forma Invoice v/s Commercial Invoice

Register AD Code with Customs

After the bank issues you an AD Code, you will need to register it with the customs. To do this, you will have to approach the CHA, and furnish the following documents:

• The AD Code registration authority letter issued by your banker

• Self-attested copies of:

  1. GST registration
  2. Last three years’ IT returns of the company or self and partner’s
  3. Bank statement, generally for the last 12 months
  4. Company's Import-Export (IE) Code
  5. Company’s PAN
  6. Board resolution
  7. Partner’s PAN, Aadhaar card, and voter ID/passport
  8. Signatory PAN, Aadhaar card and voter ID/passport, along with originals
  9. Export House Certificate (optional)

These requirements may vary with a change in statutes. The CHA will receive all the documents from you and submit it to the customs on your behalf. This usually takes about 3–4 working days.

While filing for export, if the shipping bill gets generated in the Electronic Data Interchange (EDI) system, it means your AD Code has been registered. Please note that this AD Code has to be registered at every port from where you wish to clear customs and export your goods. Once you register your AD Code at a particular port, the registration has lifetime validity.

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Making changes to the AD Code

If you wish to make any changes to the AD Code, you will have to prepare a set of documents required at the time of AD Code registration, along with the following:

• A letter mentioning the reason for changing the AD Code or canceling a previously registered AD Code

• The email ID of the bank branch for any further verification

With these documents, you will have to approach and consult the EDI helpdesk. Thereafter, a new AD Code will be generated against your name.

You can apply for an AD Code from the bank where you have your current account only once. But if your bank account changes, you will have to register your AD Code again to continue generating a shipping bill number. In other words, you will have to generate a fresh AD Code. Further, if you are changing the port of shipment, you will have to register the AD Code again with the customs.

The AD Code is a necessary document, irrespective of the size of your business or the type of entity. Without it, you cannot export your goods to other countries. So, you must get your AD Code from your bank and register it with the customs department.

Also Read :

• AEPC Registration and Subsidy Schemes for Apparel Exporters
• MPEDA - How to Register Online & Subsidy Schemes for Exporters
• APEDA's Online Registration Process & Schemes for Agricultural Exports
• Export Incentives in India | Types, Benefits & How it works
• Export Promotion Council of India | Functions & Registration procedures
• 12 Documents Required for Export Customs Clearance
• Documents Required for Your Export Order