AD Code Registration

AD CODE registration – An Overview

An AD (Authorized Dealer) Code is a 14-digit unique number issued by a bank authorized by the Reserve Bank of India (RBI). It is essential for all exporters and importers to register their AD Code with customs to enable foreign currency transactions. This code ensures that all cross-border payments are legitimate and comply with FEMA (Foreign Exchange Management Act) regulations.

Why is AD Code Registration Important?

AD Code registration is a mandatory requirement for any business engaged in international trade. It plays a critical role in:

Ensuring regulatory compliance under FEMA

Preventing illegal foreign exchange transactions

Simplifying customs clearance processes

Enabling access to export-related government schemes and incentives

Without AD Code registration, exporters cannot generate shipping bills, a crucial step in export documentation.

Benefits of AD Code Registration

Simplified Foreign Currency Transactions
Facilitates secure and smooth foreign payments and receipts.

Faster Customs Clearance
Helps in faster cargo processing and clearance at ports and ICDs.

Access to Government Incentives
Essential to avail various benefits under export promotion schemes.

Compliance Assurance
Ensures adherence to FEMA, thereby avoiding legal penalties and fines.

Documents Required for AD Code Registration

To register your AD Code, the following documents are required:

IEC Certificate (Issued by DGFT)

Bank Details: Name, branch address, account number, and IFSC code

Identity Proof of authorized signatory: PAN, Aadhaar, Passport, or Voter ID

Business Address Proof: Utility bill, rent/lease agreement, or ownership proof

Board Resolution (for companies)

Letter of Authorization (if applying through a representative)

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Frequently Asked
Questions

Find answers to some of the most common questions about our services. If you don’t see what you’re looking for, feel free to reach out to us.

1. What is an AD Code and who issues it?

An AD Code is a 14-digit number issued by a bank authorized by the RBI. It connects your business bank account with your IEC to enable foreign currency transactions through customs.

2. Is AD Code registration mandatory for exports?

Yes. Without registering your AD Code with the port of export, you cannot generate a shipping bill, which is essential for customs clearance and export documentation.

3. Can I use one AD Code at all ports in India?

The same AD Code can be used, but it must be registered separately at each port or ICD (Inland Container Depot) where you plan to export or import goods.

4. How long does AD Code registration take?

Once the correct documents are submitted, registration is usually completed within 1–3 working days, depending on the port and bank involved.

5. What are the consequences of not registering an AD Code?

Without AD Code registration: Exports or imports cannot be processed through customs You cannot receive or make foreign payments You lose access to government schemes Legal penalties may be imposed for non-compliance