Importance of AD code for Import & Export

| |

Whether you are an importer or an exporter, you are required to obtain an Import Export Code (IEC) before transporting your goods. In addition to the IEC code, four other key documents are required for customs clearance: the shipping bill, the bill of lading, the export general manifest, and the AD code. This article will inform you all about AD Code for Import and Export.

Importance of AD Code for Import & Export

Registration of the AD code is required at each port where customs clear your products. As part of the customs clearance process, your Customs House Agent (CHA) will request the AD Code for that specific port.

It is mandatory for an exporter to register each port or airport from which products will be shipped separately. The purpose of this code is to monitor foreign exchange transactions involving the exporter’s bank account.

To verify the legitimacy of transactions. In accordance with the format prescribed by the Director-General of Foreign Trade (DGFT), the code must be printed on the letterhead of the Bank.

Is AD Code registration essential?

One of three documents required by customs for the clearance of exports is a Shipping Bill. A shipping bill contains comprehensive information about the items being shipped, the port of export, and the destination country.

Customs officers approve exports based on Shipping Bills. Unless you have registered your AD Code with Icegate (Indian Customs’ electronic data interchange platform), you cannot create a Shipping Bill.

Furthermore, registering your AD Code with customs may be eligible for government benefits, such as duty exemptions and rebates. Thus, after acquiring your Import Export Code, you must get AD Code Registration.

An inland container depot (ICD) needs to register its AD code with the associated port if the shipment is being sent there.

Moreover, an AD Code registration never expires. Nonetheless, if the exporter ships from multiple ports in the same or different states, he must register the AD code for each port. Each port will have a different AD code. Recently, there have been updated ruling on this. Learn about it at: Only 1 AD Code Registration for all ports or write to us at: info@e-startupindia.com

Understand in detail at: All you need to know about AD Code in Export

How to register your AD code with customs online?

  • Login to Icegate with your credentials.
  • Choose’ Bank account management from the Menu Bar on the left side.
  • Then select ‘Export Promotion Bank Account Management.
  • Click on the ‘Authorized dealer code registration’ tab.
  • Now click on ‘E-Sanchit.’
  • You will be redirected to the page where exporters must e-file the documents mentioned above.
  • Use the prescribed form and digitally sign the documents.
  • After successfully uploading documents, the portal will generate a Document Reference Number (DRN) and an Image Reference Number (IRN).
  • In case of any issue, mail to saksham.seva@icegate.gov.in.
  • Return to ‘Authorized dealer code registration’.
  • Click ‘add a new account.
  • Enter the required information such as bank account details, image reference number, and port location code from where goods are to be exported. For example, Gurgaon’s port location code is INGGE6.
  • A six-digit one-time password will be generated and sent to your registered email id and mobile number.
  • An OPT verification screen will appear. After verification of OTP, the process for the application for registration of AD code is complete.

Upon reviewing the application, Customs will accept or reject it. A dashboard will appear on the Explorer if your application is accepted. These steps can be complex and even a simple mistake or type can waste your time, energy and money. Therefore, you can contact our AD Code Registration experts at: 8881-069-069 and we will provide you hassle-free AD Code Registration that is error-free and is affordable.

Similar to exporting, you can add multiple AD codes. Under ‘Authorised dealer code registration’ you can check the status of your application.

How to modify an existing AD Code?

If you want to modify or update anything related to the AD Code, you must prepare the following documents:

  1. A letter outlining the rationale behind altering an AD Code or deactivating one that has already been registered.
  2. Your bank branch’s email address for any additional verification

Connect with the EDI help desk along with the above documents. A new AD Code will then be generated against your name.

An application for an updated AD Code may only be submitted once to the Bank holding your current account. If your bank account information changes, you must register your AD Code once more to continue producing a shipping bill number. As a result, a new AD Code would be created. If the port of shipment is moving, you will also need to re-register the AD Code with customs.

Final Thought

Regardless of the size or type of your business, the AD Code is a statutory requirement. You cannot export your goods to other regions without it. Hence, you must register your AD Code with the customs department after receiving it from your Bank.

Take a call from Expert

Only 1 AD Code Registration for all Ports

Moreover, If you want any other guidance relating to AD Code Registration, please feel free to talk to our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates narrating to your business.

Previous

GST on co-operative housing society

Due date for DIN-KYC for FY 2021-22 extended

Next

Leave a Comment