AD Code Registration in Exports
Exporting goods from India requires compliance with several regulations and documentation processes. One crucial yet often misunderstood aspect of this is AD Code Registration. Without this registration, exporters cannot generate shipping bills — a mandatory document for customs clearance. This blog will demystify what Ad Code registration in Exports is, why it’s essential, and how exporters can complete this step efficiently.
What is an AD Code Registration in Exports?
Authorized Dealer Code, or AD Code, is a 14-digit code that is given by the bank that manages an exporter’s foreign exchange operations. This code is essential for registering with the ICEGATE portal and is required by Indian customs to validate an export transaction.
This code acts as a declaration that a particular bank is authorized to handle foreign exchange for the exporter and confirms the legitimacy of the financial transactions associated with exports.
Why is AD Code Registration Mandatory?
AD Code registration is mandatory for exporters for the following reasons:
- Customs clearance: Without AD Code registration at the port of export, customs authorities will not allow the shipping bill to be generated.
- Repatriation of export proceeds: The AD Code enables tracking of inward remittances, which is crucial for RBI monitoring and reporting.
- Port-specific requirement: Exporters need to register the AD Code separately at each port (or ICD – Inland Container Depot) from where they plan to ship goods.
How Can I Ask the Bank for an AD Code?
To obtain an AD Code, exporters must approach the bank through which they plan to receive export proceeds. The bank must be an Authorized Dealer Category I (typically, your current account bank involved in foreign exchange dealings).
Documents Needed to Submit an AD Code Application:
- Copy of Import Export Code (IEC)
- GST Registration Certificate
- PAN Card of the company/firm
- Address proof of business
- Exporter’s letterhead requesting AD Code issuance
- Cancelled cheque
The bank will provide the customs authority with a 14-digit AD Code on letterhead after verification.
How to Register AD Code on ICEGATE?
Once the AD Code is issued by the bank, the next step is to register it with the ICEGATE (Indian Customs Electronic Gateway) portal. Here’s a step-by-step guide:
Step 1: Login to ICEGATE
Visit www.icegate.gov.in and log in with your credentials. If you are not already registered, you must first register.
Step 2: Select Bank Account Management
Navigate to the Bank Account Management tab and click on AD Code Registration.
Step 3: Fill in the Port and Bank Details
Enter the 14-digit AD Code, select the port where registration is needed, and upload required supporting documents, including the bank’s AD Code letter.
Step 4: Submit for Approval
Submit the application for customs approval. In most cases, the verification process takes between 3-5 working days.
Step 5: Acknowledgment
You will receive acknowledgment once the AD Code is approved and mapped to your IEC at the chosen port.
Importance of Port-wise AD Code Registration
One of the most overlooked areas is that exporters must register the AD Code separately at each export location (port/ICD). For instance, if you’re shipping from both Nhava Sheva and Chennai, separate registrations are required.
Failure to register the code at the port can delay shipment, increase costs, and create compliance issues.
Updating or Modifying AD Code
If an exporter changes their bank or starts using a new branch for export transactions, the AD Code must be updated or modified accordingly. Although ICEGATE permits changes, the exporter must resubmit the necessary paperwork and undergo another approval procedure.
Common Issues Faced in AD Code Registration
| Issue | Resolution |
| Rejection due to invalid documents | Ensure bank letter is on letterhead and signed |
| Delay in customs approval | Follow up with ICEGATE or your CHA |
| Incorrect port selected | Double-check port code before submitting |
| Multiple bank accounts confusion | Use only the account receiving export proceeds |
Practical Example of AD Code in Use
Let’s say XYZ Exports Pvt. Ltd. exports garments from India to Europe. They receive an order and plan to ship from Mundra Port. They apply to their bank (say, SBI) for an AD Code and get it issued. This 14-digit code is then registered at Mundra Port via the ICEGATE portal.
Only after successful AD Code registration can XYZ Exports file their shipping bill, dispatch goods, and receive payment through their bank in foreign currency. If XYZ wants to start exporting from Chennai, they must repeat this process for that port.
The Final Thought: How Cretum Advisory Can Help
Cretum Advisory specializes in end-to-end export compliance and regulatory support. From IEC code application, AD Code registration, and ICEGATE onboarding to customs clearance documentation and DGFT filings, we streamline your entire export process. Our expert team ensures swift turnaround, compliance with government mandates, and seamless documentation, so you can focus on growing your global business. We also provide services like GST Registration, Startup Consulting, Accounting & Advisory, Income taxation and Customs Advisory Services
📩 Need help with AD Code Registration or any other export compliance service? Reach out to us at info@cretumadvisory.com
Frequently Asked Questions (FAQ) on AD Code Registration in Exports
Q1. What is an AD Code in exports?
A bank that is permitted to trade in foreign exchange will issue a 14-digit number known as an AD Code (Authorized Dealer Code).It is required to create a shipping bill while exporting.
Q2. Why is AD Code registration important?
Without AD Code registration at the port, customs won’t allow you to file the shipping bill—halting your export process.
Q3. Who issues the AD Code?
Your bank, which handles your foreign exchange transactions, issues the AD Code on its official letterhead.
Q4. Where do I register my AD Code?
You must register the AD Code at the port of export through the ICEGATE portal.
Q5. Do I need to register AD Code for every port?
Yes, AD Code registration is port-specific. You must register separately at each port you use for exports.
Q6. How long does AD Code registration take?
Depending on customs procedures, approval typically takes 3–5 business days after submission on ICEGATE.
Q7. Can I use the same AD Code for different ports?
Yes, but you must independently register the same AD Code at each port using ICEGATE.
Q8. What if I change my bank?
You’ll need to get a new AD Code from the new bank and re-register it at the relevant ports.