For Indian exporters entering global markets, success is not determined only by product quality or pricing. A strong understanding of regulatory requirements is just as important. International shipments move smoothly only when all compliance steps are in place. One of the most critical among them is the AD Code. This 14 digit number may appear simple, but it serves as the foundation for customs clearance, export documentation, and access to incentives. Without an AD Code, your consignment cannot leave the country, and you will not receive any export-related benefits. In export compliance, the AD Code is not paperwork you handle later; it is the very first system entry that connects your bank account, the customs department, and the RBI.

What Is an AD Code?

An AD Code (Authorised Dealer Code) is a 14 digit numerical identifier issued by a bank that is authorised by the Reserve Bank of India (RBI) to deal in foreign exchange. This code serves as a link between the exporter’s bank account and key government systems, primarily the customs department and the RBI. This connection enables the monitoring of foreign exchange transactions and ensures that all export money is received in compliance with FEMA (Foreign Exchange Management Act).

Why Is AD Code Mandatory?

The AD Code is not an optional registration. It is mandatory for the following reasons:

1. Mandatory for Customs Clearance: Without a registered AD Code, customs authorities will not clear your shipment. This is a complete roadblock that can leave your goods stranded at ports, leading to significant financial losses and delivery delays.

2. Access to Government Benefits: For exporters, the AD Code is essential for receiving government benefits and incentives. Schemes like GST refunds, Duty Drawbacks, and RoDTEP (Remission of Duties and Taxes on Exported Products) are designed to make Indian products more competitive. These benefits are directly credited to the bank account linked to your AD Code, making its registration financially advantageous.

3. Facilitates International Trade: The AD Code provides a transparent record of all your financial activities related to exports. This compliance not only saves you from legal complications but also builds trust with international partners and financial institutions, paving the way for smoother transactions and long-term relationships.

Benefits of Having an AD Code

• Faster Customs Processing: Once registered, shipments clear ports without avoidable delays.
  
• Reduced Paperwork: The AD Code centralizes export documentation, making the customs process easier.
  
• Automatic Credit of Incentives: Export benefits sanctioned by the government are credited directly to your account.
  
• Lifetime Validity: Once registered at a port, the AD Code remains valid unless you change your bank or business details.
  
• Operational Clarity: Helps maintain a clear financial record of your export transactions.

Step-by-Step Process to Obtain AD Code from Bank

1. Choose an Authorised Dealer Bank
Ensure that your current account is with a bank that has RBI approval to conduct foreign exchange transactions.

2. Gather Required Documents

• Import Export Code (IEC) certificate
  
• Goods and Services Tax (GST) registration certificate
  
• Permanent Account Number (PAN) card
  
• Cancelled cheque from your company bank account
  
• Identity proof of Proprietor or Director
  

3. Draft a Formal Application Letter
Write to the branch manager requesting issuance of a 14 digit AD Code specifically for export operations.

4. Submit Application and Documents
Visit your bank branch and submit your letter along with all required documents.

5. Bank Verification
The bank verifies your application and confirms your eligibility.

6. Receive AD Code Letter
Once approved, the bank issues the AD Code on its letterhead confirming your authorised dealer code.

Format of Bank Letter Issuing AD Code

The letter should be on the bank’s letterhead and must include:

• Date
  
• Exporter’s Name and Address
  
• Bank Branch Details
  
• The 14 digit AD Code
  
• Signature of authorised officer and bank seal
  

Sample Format:

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[Bank’s Letterhead]

Date: [DD/MM/YYYY]

To Whom It May Concern,

This is to certify that [Exporter’s Name], having its registered office at [Exporter’s Address], has been assigned the Authorized Dealer (AD) Code [AD Code] by [Bank’s Name], [Branch Name], located at [Bank Branch Address].

This code is issued to facilitate the export transactions of the entity mentioned above.

[Signature of Bank Official]

[Bank’s Official Seal]

Sincerely,  

[Bank’s Name]

How to Register AD Code with Customs (Offline via CHA)

1. Submit Documents to CHA
Provide your Custom House Agent with the AD Code letter, IEC certificate, and GST certificate.

2. CHA Registers Code with Customs
Your agent submits these documents and completes the registration at the port.

3. Receive Port-wise Confirmation
Once processed, you will receive confirmation that your AD Code is active for that port.

How to Register AD Code Online on ICEGATE

1. Visit icegate.gov.in and Login/Register
Create a new account or log into your exporter profile.

2. Open AD Code Registration
Go to Services > Bank Account Management > AD Code Registration

3. Enter Details
Fill in the AD Code, your bank and branch details, and the port name.

4. Upload Documents
Upload scanned copies of the AD Code letter, IEC certificate, and GST certificate.

5. Submit Application
After submission you will receive an acknowledgment. Customs will verify your application and grant approval.

Documents Required for ICEGATE Registration

• AD Code letter on bank letterhead
  
• Import Export Code (IEC) certificate
  
• GST registration certificate

Modifying or Cancelling an Existing AD Code

• The AD Code remains valid for life unless you change your bank or the registered port.
  
• If you change either of them, submit a cancellation or modification request to customs.
  
• Provide an updated AD Code letter from the new bank (if applicable).
  
• Complete re-registration procedures at the new port or with the new bank details.
  

Conclusion

Registering your AD Code is the foundation of a compliant and efficient export operation. It ensures your shipments are cleared by customs, your bank records are linked to the RBI, and your business receives government incentives directly into its account. Treat AD Code registration not as a formality but as the first operational step in your export journey. Complete it well in advance of your first shipment. If you are unsure about the process or short on time, seek assistance from a Custom House Agent or freight forwarder to ensure proper setup and faster export readiness.

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