All about AD code (Authorized Dealer Code) / IFSC code registration
Overview :
All exporters and importers of goods in India are required to obtain the AD code as it is mandatory for customs clearance. A shipping bill is required for customs clearance at the port & it cannot be generated without an AD code registration. An AD code registration also offers benefits like exemptions that are directly credited to the current account.
When a current account is opened by any importer or exporter who wants to do international business, the authorized bank assigns an AD code. This is a 7-digit code given to an importer or exporter by a bank because all export proceeds are to be received in this account via normal banking channels. The AD code is a seven-digit number assigned by the Reserve Bank of India to the bank. For an importer, the amount of imported goods must be remitted to the seller from this Account. As a result, this account becomes a critical link in the Exim business.
We will focus on clarifying the fundamental concepts of the AD code and IFSC, new amendments to the online systems and required documents, and some important FAQ’s about the AD code and IFSC.
What is AD code?
The term AD refers to an authorised dealer who is licenced to conduct forex transactions by the Reserve Bank of India. When an exporter or importer opens a current account with a registered authorised dealer (exporter/importers banker), they are given the licence number of the authorised dealer. It also confirms that the importer or exporter is conducting legal business and that the proceeds are received or repatriated via normal banking channels. This code is required in order for an importer/exporter to transact any document, such as a shipping bill or a bill of entry, in the customs Icegate portal.
What is IFSC code:
Exporters are required to register for an IFSC code. The main reason for registering with an IFSC is to receive benefits such as duty drawback and IGST refund. In simple terms, it means that the amount of duty drawback and IGST will be credited to the bank account associated with the IFSC Code.
Importance of AD code.
It is very important to have an AD code without which an importer/exporter will not be able to transact any document with customs. It also helps customs and RBI to know whether the import/export transactions have been completed through legal banking channels.
Other benefits:
- Mandatory documents for import/export.
- Transfer of credit to the traders account directly.
- Submission of shipping bills/bill of entries for onward export/import.
- Important for claiming incentives and refunds.
- Importers requirement for releasing payments.
- Port registration can be done online.
Watch this short video on Icegate AD code registration & IFSC Code Registration, which explains the importance, application procedure, and how we at AFLEO Group can assist you in registering the AD code/IFSC at customs Icegate Portal.
Icegate AD Code Registration Procedure:
Before registration of the AD code let us understand what Icegate is.
Icegate is the official portal created by the CBIC for doing international business with customs and banks for importers and exporters. Prior to registering an AD code with Icegate, an importer or exporter must first register the company with the Icegate portal, i.e., provide his IEC, PAN card, email address, and phone number. This is a one-time event.
Documents Required for AD Registration online on Customs Icegate Portal:
- AD code number letter on bank’s letter head.
- GST registration document.
- Cancelled cheque.
- IEC code.
- Company’s pan card copy.
- Photo, Aadhar card copy, pan card copy etc. of the director who is authorized to sign the document on behalf of the company.
How can we help you
We at AFLEO Group, are a team of DGFT & customs experts having a rich experience of 10+ years in exim consultancy & international logistics [freight forwarding]. With our vast knowledge and experience in this field we can help you with the registration of AD code & IFSC at all ports in India in a fast & efficient manner.
So do get in touch with us for any of your requirements and our team will be happy to help you.
Let us know if you have any doubts in the below section.
FAQ’s on AD code registration at Icegate:
It is a mandatory requirement for conducting imports and exports from our country.
It can be done online after obtaining registration with the ICEGATE portal.
It can be checked online by visiting the ICEGATE portal.
After opening a current account with a registered authorised dealer, the dealer receives a 7-digit code that serves as proof of his registration with the Reserve Bank of India. This seven-digit code is the AD code for an importer or exporter.
It helps in getting the incentives and benefits directly credited into the Bank account. Also it helps in getting the export proceeds realized or allows repatriation of the funds for imports done.
No, an IEC holder may only have one AD code bank account registered for one Port location.
Yes, it is required for importers. The importer will be unable to file the bill of entry at customs without an AD code.
Latest update:
As per the latest circular, AD code is to be registered at one port only, post which it will automatically be reflected for all ports.
Whereas, IFSC registration is to be done port wise separately.
Insights
Our presence on Youtube
