Starting an import and export business in India requires two essential registrations mandated by the government: the Importer Exporter Code (IEC) and the Authorised Dealer (AD) Code. The AD Code, a vital 14-digit number, facilitates customs clearance for your goods and ensures that foreign currency transactions are conducted through legal channels.
What is an AD Code?
The AD Code is issued by authorized banks and is necessary for exporters and importers to conduct their business smoothly across various customs locations in India. Registering for an AD Code at any one port grants you the ability to use it for customs clearance nationwide.
Benefits of AD Code Registration
- Global Market Access: AD Code registration expands your business opportunities internationally, enabling rapid growth.
- One-Time Process: The registration is a one-time process with no recurring returns or filing requirements after the initial registration.
- Lifetime Validity: Once assigned, the AD Code remains valid for the life of the business entity without the need for renewal.
- Government Incentives: Registered entities can avail themselves of various incentives for imports and exports from the DGFT, Export Promotion Councils, and customs.
Why is AD Code Registration Essential?
- Mandatory for Exporters: Exporters must possess an AD Code to export goods from India.
- Shipping Bill Requirement: An AD Code is necessary for generating a Shipping Bill, a critical document for export customs clearance on the ICEGATE platform.
- Direct Fund Transfer: It facilitates direct credit transfers to the trader's current account.
- Access to Government Benefits: Many government benefits, such as duty rebates and GST refunds, are directly credited to accounts with a registered AD Code.
- Port-Specific Registration: Registration is mandatory for each port from which you intend to export.
- Documentation for Banking: Banks often require the AD Code for international transactions.
Required Documents for AD Code Registration
- Bank's AD Code authorization letter (Annexure-A).
- Exporter's authorization letter on company letterhead.
- Customs broker's letter on letterhead.
- GST Registration Certificate.
- Import-Export Code License.
- PAN Card.
- Export House Certificate (if applicable).
- Manufacturing License (if applicable).
- Identification proof (PAN, Aadhaar, Voter ID/Passport) of the owners
Step-by-Step AD Code Registration Process
- Provide Business Details: Enter the required business information on our portal.
- Choose a Package: Select a registration package and make payment through various available modes.
- Application Assignment: Your application will be assigned to a dedicated professional.
- Document Preparation: Our expert will prepare necessary documents and file the AD Code registration application.
- Follow-up: We’ll follow up with the port department for processing.
- Receive AD Code Certificate: Once obtained, we will send the AD Code certificate to your email.
Latest Updates on AD Code Registration
- As of June 14, 2022, AD Codes now only need to be registered at one port, making it easier for businesses.
- The AD Code registration process is now online via ICEGATE.
- Changes in account details must be processed at the original port of registration.
- Multiple AD Codes can be registered against a single IEC at different ports.
How to Register for an AD Code with Compliance Calendar LLP?
Compliance Calendar LLP offers expert assistance for hassle-free AD Code Registration:
- Consultation: Speak with our experts to check eligibility and required documents.
- Document Preparation: We help in preparing all mandatory documents.
- Application Submission: Our team applies for the AD Code on your behalf.
- Verification: DGFT officials will verify and process the application within a week.
- Receive Certificate: After successful verification, you’ll receive your AD Code certificate via email.