AD Code - A Quick Guide On Registration

The demand for online shopping has dissolved the borders and shrunk the world. Logistic industry has turned over to a new leaf due to advanced technology, which has encouraged E-sellers to do international shipping. With greater market for Indian goods abroad, E-sellers must ensure that they are well equipped to render their product and services to customers in every nook and corner of the globe.

It's intricate to perceive customers buying pattern, you never know when a foreign customer may admire your product and order it. Hence you have to plan and be ready with documents and registrations beforehand to do International shipping. One such document required for import/export of your goods is AD Code.

Any businessman who wants to import or export his goods to another country must obtain IEC (Import Export Code) from Directorate General of Foreign Trade. Since you are remitting or receiving foreign currency to your bank account, it is necessary to get AD Code from the bank and register it in customs.

AD Code is an acronym of Authorized Dealer Code. It is a 14 digit code given by the bank branch where you have opened a current account for export/import business. AD Code is required when you are exporting or importing goods to other countries. It is a compulsory document during customs clearance of the goods without which shipping bill number will not be generated. AD Code depicts that the foreign currency transactions in your bank account are by trading goods and not through illegal activity. Below is the procedure to get AD Code and register it in customs:

Procedure to get and register AD Code:

Step 1: Write a letter to the bank regarding issuing the AD Code for your bank account (Account used for business purpose).

Step 2:Collect the letter from the bank with the information about the 14 digit AD code.

Step 3:Once you have collected the AD Code from the bank, register it in the customs. In order to register AD Code, you need to approach CHA’s (Customs House Agents). CHA’s will receive all the documents from you and submit it to the customs on behalf of you and this will take almost 3-4 working days.

Step 4:The documents required for AD Code registration are as below (All originals also would be needed at time of the feeding)

• Authority letter for ad code registration issued by your banker.
• Self attested copy of GST registration.
• Self attested copies of Income Tax Returns minimum 3 years of the company/self &  partner Income Tax Returns of last 3 years.
• Self attested copy of bank statement (minimum of 12 months).
• Self attested copy of company's IEC & PAN card along with a certificate of board resolutions in case of Pvt Ltd Company.
• Self attested copies of partners PAN card, Aadhar card & Voter card/Passport.
• Self attested copies of signatory PAN card, Aadhar card & voter card/passport (originals also required).
• Copy of central excise registration (RC if company is registered in excise).
• Copy of rent agreement along with electricity bill in case change in address of IEC and Director’s.
Step 5: You will know if your AD Code is registered in customs only when you file an export.
Step 6: File an export, if shipping bill is generated in the EDI System, then AD Code is registered. If error message is displayed then it implies that AD Code is not registered.  


How to change an already existing AD Code?


1.You will have to consult the EDI helpdesk in order to change the AD Code with above mentioned documents and other documents mentioned below:
• Letter with the cause of changing then AD Code or cancellation of previously registered AD Code.
• Also, e-mail ID of the Bank branch must be mentioned for further verification.
2. With the above documents, new AD Code will be generated.


You can get AD Code only once from the bank where you have your current account unless you change the bank. In such cases, you will have to generate a fresh AD Code. You will have to register AD Code again in customs, if you are changing the port from where you are importing/exporting goods. You can register it only once for that particular port and continue shipping for a lifetime.


No matter what size your company is, AD Code is a necessary document without which you cannot import/export your goods to other countries. Hence make sure you get the AD Code from the bank and register it in the customs.