Export and import are the roots of several businesses currently present in India.
Being a business-centric country, it is not out of the norm if a company has to export or import from outside India.
That is where an AD code (Authorized Dealer Code) comes into play. In this article, we will try to explain AD code registration online in simple terms.
Here, we will discuss how to register for AD code online, its advantages, disadvantages, and everything in between regarding this.
What is AD code?
AD code or Authorized dealer code is a 14-digit numerical code provided by the bank to the companies which deal in Foreign currency.
The bank gives this code that the exporter has linked their business. It comes out as printed on a bank's letterhead. This has a particular format, and the DGFT dictates this format.
This code is only given out by banks that deal with foreign currency. With the presence of this code, any business transaction done in foreign currency by a company is considered to fall under legal trade.
Exporters are expected to learn about AD code registration online and register not only the port or airport they will export from but also other ports that their product might go through. Once registered and received, this AD code is valid for a lifetime.
This is important as this code is mandatory for every exporter without an AD code; a shipping bill will not be generated, and to get customs clearance, the exporter must show the AD code. Also, an AD code provides the exporter with whatever government aids present for them, starting from rebates and tax exemptions, GST refunds, etc., which are directly credited to the exporter's account.
Application Format for AD codes
The first one would have to collect the same from the bank to register the AD code online.
To do so, one must write a letter to the bank that their business is directly linked with the AD code. The Format of the letter should be like this:
(Address and Contact),
Subject: Request for Authorized Dealer Code
I, (account no.) of (bank branch) branch of your esteemed establishment, wish to apply for an Authorized Dealer (AD code) code as I am currently exporting a consignment abroad(estimated time frame), and I need the AD code to be registered with the port (port name) I will be sending my consignment through.
Please issue the AD code letter addressed to the commissioner of customs at the port (port name) and in the given format (enclosed format) at your earliest convenience.
My IEC number is (Enclose IEC number)
I would be grateful if this request is treated urgently.
Once the application is processed, you will receive the AD code assigned by your bank in Annexure-A.
After receiving this, you can move on to the next step of the process, which is an online registration of AD Code.
Documents Required for AD Code registration online
A particular set of documents is necessary for AD Code online registration. They are:
1. AD code registration letter authorized by the bank
2. Self-attested copies of:
B.Last three years of IT returns of the company.
C.Bank statement for the last 12 months.
D.Company’s Import Export Code (IEC).
3. Board’s resolution.
A. Partner’s PAN, Aadhar Card, and Voter/Passport ID.
4. Signatory’s PAN, Aadhar Card, and Voter/Passport ID.
How to register an AD code online in India
Once you have all the documents mentioned above, you can register your AD code online on ICEGATE.
Step 1: Go to the ICEGATE portal and slog in the portal.
Step 2: Go to the bank account management panel.
Step 3: Under that panel, select the option of Authorized Dealer or AD code
Step 4: Fill out all the details necessary in the portal by uploading documents in the e-Sanchit.
Step 5: Portal will generate an image reference and document reference numbers.
Step 6: Click add a new account under the Authorized dealer code registration dashboard.
Step 7: Enter the necessary bank details, port details, and the image reference number.
Step 8: if all details are valid, OTP is sent to the registered mobile number and email.
After verifying, the registration is complete. Now the customs would go through it and either accept or reject it.
Step 9: You can check the request status on the Authorized Dealer Code Registration dashboard by clicking on the status icon
If the request is approved, you can view the registered AD code and Bank details on the same dashboard.
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Advantages of AD Code
Due to this registration, exporters can learn whether their documents were processed and accepted or not from their homes.
Previously, the exporters only got to know about it when they reached the place and could not get their shipping bill from ICEGATE.
Disadvantages of AD Code
One of the most significant issues that one might face when applying for ad code registration online is that when they log in to the ICEGATE portal, they can not apply for customs if their account is temporary.
Final words on ad code registration online
AD code registration is very important for the best services in businesses with a lot of export work. The AD code also helps legalize the trade and the money earned from it.
If you want to learn more about these things, please consider visiting more blogs by us.
1. Is AD code mandatory?
Yes, an AD code is mandatory to get your shipping bill from ICEGATE.
2. Can the AD Code be modified?
Yes, the AD code can be modified.
3. What documents do I need to modify the AD code
To do so, you will need the following documents:
1. An exporter’s letter explaining why they need to change the AD code
2. Relevant bank branch’s email.
3. All other documents that were necessary during registration
4. Can I Modify my AD code online?
Yes. You can modify your AD code online. Go to ICEGATE and follow the following steps.
- On the Authorized Dealer Code Registration dashboard, select the location and click Modify Account.
- On the Modify Account panel, select bank name, put IRN, AD code, and ICEGATE code, then click Save Changes.
- If inputs are correct, a 6-digit OTP is sent to the registered email and mobile for verification. Once it is verified, the request will be processed officially.