Overview

An AD, or Authorised Dealer, is a 14-digit code issued by a bank to an exporter or importer. It is required for all export and import transactions involving foreign currency. The purpose of the AD Code is to ensure that foreign currency transactions are genuine and not used for illegal purposes.

Benefits of AD Code Registration

Ease of Making and Receiving Foreign Currency Payments

• The AD Code helps to verify your identity and the authenticity of the transaction, making it easier to make and receive foreign currency payments.
• ssThis can save you time and hassle, and can help to ensure that your payments are processed smoothly.

Faster Customs Clearance

• The AD Code helps to identify your shipments and to ensure that they are compliant with all the necessary regulations.
• This can help you to clear your goods from customs more quickly, which can save you time and money.

Access to Government Incentives and Schemes

• The AD Code shows that you are a legitimate business that is engaged in genuine trade activities.
• This can make you eligible for government incentives and schemes, which can help you to grow your business.

Reduced Risk of Penalties and Fines

• The AD Code helps to ensure that you are complying with all the necessary regulations.
• This can help you to avoid penalties and fines, which can save you money and reputational damage.

Eligibility for AD Code Registration

To be eligible for AD Code registration, the entity must:

• Be registered with the Directorate General of Foreign Trade (DGFT) for an Import Export Code (IEC).
• Have a current account with a bank that is authorised to deal in foreign currency.
• Provide all the required documents to the bank.

Documents Required for AD Code Registration

The documents required for AD Code registration may vary depending on the bank and the type of entity applying for the code. However, the following are some of the most common documents that are required:

• IEC Registration Certificate: This certificate issued by the Directorate General of Foreign Trade (DGFT) establishes the entity's eligibility to export or import goods.
• Bank Account Details: This includes the name of the bank, the branch address, the account number, and the IFSC code.
• Proof of Identity: A PAN card, Aadhaar card, passport, or voter ID card.
• Proof of Address: This could be a utility bill, a lease agreement, or a property registration document.
• Board Resolution: This is a resolution passed by the entity's board of directors authorising the registration of the AD Code.
• Letter of Authorisation: This is a letter from the authorised signatory of the entity authorising the person applying for the AD Code to do so on their behalf.

Applying for an AD Code

To apply for an AD Code, you'll need to complete two main steps:

1. Apply for AD Code through your bank:

• Visit your bank branch: Go to the bank where you maintain your current business account.
• Submit an application letter: Request the bank to issue an AD Code for your business. The bank will likely provide a specific format for this letter. Be sure to include all necessary details like your IEC number, GST registration number, and desired port locations.
• Provide supporting documents: The bank might require documents like your PAN card, bank account details, and proof of business address.
• Pay the applicable fees: There might be a processing fee associated with issuing an AD Code.

2. Register your AD Code on ICEGATE:

• Go to the ICEGATE portal: Sign up or log in to the Indian Customs Electronic Gateway (ICEGATE) portal
• Verify your port locations: Ensure all port locations where you plan to conduct exports are listed in your profile.
• Obtain a Class-3 digital signature: If you haven't already, acquire a Class-3 digital signature certificate for online authentication on ICEGATE.
• Register your AD Code account: Under 'Bank Management System,' choose 'Add Bank Account' for AD Code bank account registration.
• Fill in the form: Provide details like your AD code, bank account details, and chosen port locations.
• Upload documents: Attach scanned copies of required documents like the AD code authorisation letter from your bank, GST registration certificate, and cancelled cheque.
• Verify and submit: Check all information thoroughly before submitting your application.