All you need to know about AD Code in Export
Today, every entrepreneur wishes to venture into the global market to expand his business. Undoubtedly, export promotion is a sign of the nation’s economic growth and is, therefore, a key drive of our government.
However, for stepping into the world of Exim trade, one has to fulfil certain essential documentation as well as legal compliance.
The import-export code is a passport for doing Exim trade. Hence it is required by every exporter as well as importer of goods.
Apart from the Import Export Code, one has to be prepared with the 4 main documents for customs clearance:
Shipping Bill (Bill of Export)
Bill of Lading
Export General Manifest and
Very importantly, one has to know about the AD Code. While customs clearance procedure, the Custom House Agent will ask you to provide AD code letter.
So, let’s understand what is all about the AD code and how to obtain it.
#1. What is an AD code?
AD code stands for Authorised Dealer Code. This is a 14 digit code, which is required to be obtained after the Import Export Code Registration for export customs clearance.
In absence of AD code, the Electronic Data Interchange (EDI) system of the ICEGATE portal will not allow generation of the shipping bill number, which is required for customs clearance.
#2. Where to get the AD code?
The AD code can be obtained from the Bank where the exporter has opened its current account for the export & import. Bank gives the 14 Digit AD code on bank letterhead. This is what the Custom House Agent asks for, while customs clearance.
#3. Where to register for the AD code?
The exporter has to register the AD code at every port from where he wishes to export his shipment.
For instance, if an exporter wants to export your consignment from Visakhapatnam (EPZ/SEZ), Andhra Pradesh, he needs to register AD code in Visakhapatnam (EPZ/SEZ) Custom port only.
#4. What if I have to export from more than one custom port?
In case you are exporting shipment from more than one custom ports, you will have to register the AD code at each and every custom port, from where the shipment has to be dispatched.
#5. Why obtain the AD code?
The AD code is a very essential document required for customs clearance.
- Without this AD code, the exporter can’t generate his shipping bill number which is necessarily required for customs clearance.
- Besides, AD code is essentially needed for receiving the government benefits directly into the current bank account.
Hence, an exporter is required to register for the AD code at his customs port as soon as he obtains the unique Import Export Code.
#6. How to obtain AD code?
As mentioned above, the AD code can be obtained from the Bank where the exporter has opened his current account for the purpose of export & import. Here are the steps you need to follow to obtain the AD Code-
Approach your bank where you have maintained your business current account.
Write a request letter to bank branch manager for providing AD Code in the prescribed format.
Obtain AD Code on bank letterhead in DGFT prescribed format.
On obtaining the letter, register AD Code at every port from where you want to export.
#7. What are the documents required for registering AD code at customs?
Given below are the documents required for seeding AD code at the customs department-
AD Code on bank letterhead
Copy of the Import Export Code,
Copy of the PAN Card
Export House Certificate (optional)
If you're planning to kick-start your export venture. Our professional can assist you during the entire procedure of obtaining and registering AD Code on ports across India.
In case you need any other help regarding Import Export Code Registration, you can feel free to contact us at 8881-069-069.
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