AD Code Registration: Importance, Filing Process & Documents
TL;DR - Summary
- What is AD code registration? - This refers to the process of registering the 14-digit AD Code issued by your bank on the ICEGATE portal for export customs clearance.
- Why is an AD Code Registration required? - Without this, you cannot create a Shipping Bill, your cargo will not pass through customs, and eligible export benefits such as RoDTEP and Duty Drawback cannot be credited to your account.
- How much does an AD Code Registration cost? - ICEGATE does not require any government charge; however, there may be optional charges from the bank, DSC, or consultant.
- How many ports must I register at? - Under CBIC Advisory No. 10/2022, only one registration is valid across all customs locations under the same IEC.
- How long is an AD Code Registration valid? - It does not have a prescribed expiry period and remains valid unless there is a change to the linked bank account or other registration details.
What Is AD Code Registration?
AD code registration is the process of registering the 14-digit Authorised Dealer Code, provided by an RBI-authorised bank, on the ICEGATE portal so that Indian Customs can associate your bank account with your IEC for export dealings. Authorised dealer code refers to a 14-digit number generated by an RBI authorised bank for use by businesses with a current account for doing international business.
Key points to understand:
- The AD Code is received following IEC registration and needs to be registered in the ICEGATE portal (Indian Customs Electronic Gateway) for customs clearance.
- Registration ties the bank account of the exporter with the IEC number and customs, which ensures that all foreign exchange transactions are traceable via the approved banking route.
- Without a registered AD Code, an exporter cannot create a Shipping Bill in the ICEGATE portal, and without a Shipping Bill, there is no export clearance from customs.
- An AD Code does not have a fixed expiry date. It remains valid as long as the authorised dealer bank account and business details remain unchanged. Any change in the bank account, AD bank or IEC-linked details requires updating the registration on ICEGATE.
- Following CBIC Advisory No. 10/2022 (14 June 2022), the system changed to the single-port system where registration in a single port is enough for the AD Code to be used anywhere in customs under the same IEC.
Why Is AD Code Registration Required?
AD code registration is necessary since Indian Customs would not process a Shipping Bill unless a registered AD Code is associated with the exporter’s IEC on ICEGATE. Apart from this basic need for registration, the registration serves several purposes:
- The registration links the exporter's authorised dealer bank account with ICEGATE for customs processing.
- Export incentives such as RoDTEP, Duty Drawback, RoSCTL, and eligible IGST refunds on exports are credited to the registered bank account linked through ICEGATE.
- It ensures FEMA and RBI compliance by making sure that all foreign currency transactions take place through an official and RBI authorised banking route.
- Proactive registration avoids shipment delays, facilitates speedy customs clearance, and also allows the availing of export incentive schemes based on your IEC code.
In short, the AD code registration for export activity is not just formal paperwork, but it serves as the bridge between your goods, the customs clearance process, and the payment of your money.
What Documents are Needed for AD Code Registration?
The list of AD code registration documents consists of the AD Code Letter by the bank, IEC certificate, GST registration, PAN, a cancelled cheque and, depending on the type of entity, DSC, Board resolution and Address Proof.
The following table lists the documents along with the reason for rejection.
| Document | Common Rejection Reason |
|---|---|
| AD Code letter from bank (on bank letterhead) | Not on official letterhead, missing bank officer signature/stamp, IFSC code absent |
| IEC Certificate (issued by DGFT) | Address on IEC does not match current business address |
| GST Registration Certificate | Business name mismatch with PAN or IEC |
| PAN Card (business entity + authorised signatory) | Proprietor PAN used instead of company PAN for registered firms |
| Cancelled Cheque / Bank Statement | Account number does not match the account in the AD Code letter |
| Digital Signature Certificate (DSC), wherever applicable for ICEGATE services requiring digital authentication | Wrong DSC type used (must be Class 3), expired DSC |
| Board Resolution (for Pvt Ltd / LLP / companies only) | Missing or not stamped by authorised director |
| PAN + Aadhaar of all directors/partners/proprietor | Aadhaar not linked to PAN, missing for all partners in a firm |
| Authorisation Letter on company letterhead | Missing when a CHA (Customs House Agent) is filing on behalf |
| Business address proof (electricity bill, lease deed, rental agreement) | Proof is outdated, or address differs from IEC/GST records |
How to Get an AD Code from Your Bank?
You can obtain an AD Code by submitting a formal request along with the required documents to the RBI-authorised dealer bank where your business holds a current account. AD Code is the mandatory first step for registering with ICEGATE to undertake export of goods and complete customs formalities.
Here is how to obtain it:
- Step 1- Selecting an AD Bank: First, you need to ensure that you hold an account at a bank which has been authorised to deal with foreign exchange transactions. This is because every bank does not have this authority, and hence it would be wise to check in advance.
- Step 2- Send an AD Code Request Letter to Your Bank: You can write a formal letter to your bank requesting an AD Code. Along with the request to issue the 14-digit AD Code, mention your purpose and business requirements in detail.
- Step 3- Prepare the Necessary Documents: Always keep necessary documents ready, such as a bank certificate, IEC certificate, and company PAN card handy.
- Step 4- Verification by the Bank and Release of AD Code: The bank will verify all your details along with the documents before issuing the AD code letter on their official letterhead. Depending on your bank's policies, this process usually takes a few business days.
Note: To get to know the detailed steps on how to obtain an AD Code, read here.
How to Register AD Code on ICEGATE?
An AD Code bank account is registered on ICEGATE in six steps: open the Bank Account tab, select Foreign Remittance Account, click Add New Bank Account, fill in your bank and AD Code details with a proof document, verify, and submit. This registration covers both the bank accounts used to collect your export incentives and the declaration of banks used for making foreign remittances.
Step 1: Open the Bank Account tab
Once you are logged in to ICEGATE, click on the tab labelled Bank Account. This is where all your registered account details sit, and where you add or modify them.
Step 2: Select Foreign Remittance Account (Authorized Dealer Code)
From the options available, choose Foreign Remittance Account (Authorized Dealer Code). This section holds the declaration of the banks you use for making foreign remittances, as distinct from the accounts used purely for receiving export incentives.
AD-Code-Registration-Select AD CodeStep 3: Click Add New Bank Account
On the Foreign Remittance Account screen, click the Add New Bank Account button to open the entry form for a new account.
AD-Code-Registration - Add Bank AccountStep 4: Fill in your bank and AD Code details
Enter the full set of details the form asks for: Bank Name, Branch Name, AD Code, Bank Account Number, Custom Location, Doc Type, and IRN. You will also need to upload a proof document supporting the account you are registering, so keep that file ready before you begin.
AD-Code-Registration - Add bank detailsStep 5: Click Verify
Once every field is filled in, click the Verify button. This is where the system checks the details you have entered against its records, so any typo in the AD Code or account number will surface at this stage rather than later.
Step 6: Confirm the AD Code and submit
Based on the details you entered, the system will auto-populate the AD Code under IRN. Check that it matches what your bank issued you, then click the Submit button to complete the registration.
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Who is eligible to apply for an AD code?
Any person having a valid IEC issued by DGFT, having a current account with an authorised bank under the RBI for foreign exchange transactions and engaged in export/import of goods is eligible to register on the ICEGATE portal for AD code registration.
Are there any fees for AD code registration?
Do service exporters and freelancers need AD code registration on ICEGATE?
How do I check my AD code registration status online?
Does one AD code registration cover all export ports automatically?
Can multiple AD codes be registered against one IEC?
What happens after my AD code registration is approved?
When do I need to re-register my AD code?
What is the validity of an AD code registration?
