Introduction: AD Code registration plays a pivotal role in import and export operations, ensuring seamless customs clearance. This guide provides an in-depth understanding of AD Code, its significance, registration process, and documents needed for a successful registration.
I. What is AD Code?
AD Code stands for Authorised Dealer Code. It is a 14-digit numerical code obtained from the bank where the importer or exporter holds a current account. Importers/exporters request this code from their bank. The bank then issues the 14-digit AD code on its letterhead for export and import purposes.
II. Why is AD Code Required?
AD Code is essential for customs clearance during exports. Without a registered AD Code linked to their Import Export Code (IEC), exporters cannot generate a shipping bill number, which is mandatory for customs clearance. Furthermore, registering the AD Code with customs allows the exporter to avail government benefits such as Drawback/IGST refunds directly into their account.
III. AD Code Registration
The Directorate General of Systems, CBIC, has introduced a feature within ICEGATE login that enables exporters to request online registration/modification of their AD Code/Bank Account(s). They can also submit their passbook copy or bank authorization letter electronically through e-Sanchit. After obtaining the AD Code from the bank, it must be registered on ICEGATE by selecting a port of registration. The registered AD code can then be used across all customs ports.
IV. AD Code Registration or Updating
For new AD code registration or updates at any port, an online request on ICEGATE is mandatory. Any changes to AD code account details must be made at the port of registration chosen during the application.
V. Use at Multiple Ports
An AD code registered against an IEC at one port can be used across all ports in India. Separate registration at other ports is unnecessary for document filing.
VI. Multiple AD Codes
An IEC holder may have multiple current accounts, resulting in multiple AD codes. All these codes can be registered at any one port. Different ports of registration are possible for different AD codes under the same IEC.
VII. Documents Required for AD Code Registration
- Class-3 Organisational Digital Signature
- Bank Authorization letter including:
- Exporter’s name and address
- IEC Number
- PAN
- Bank Account number
- Bank AD Code
- Bank IFSC Code
- Branch details (name, address, email, contact)
- PAN linked with IEC and Bank accounts
- Copy of cancelled cheque or recent bank statement
Physical interactions between customs and trade, and the submission of physical documents, have been replaced with the online process.
VIII. Statutory Provisions
(a) Circular No.32/2020-Customs dated July 6, 2020
(b) CBIC Instruction No 25/2023-Customs dated July 28, 2023
(c) Advisory No : 10/2022 dated June 14, 2022
Conclusion: The AD Code registration process is a vital aspect of modern import and export operations. It streamlines customs clearance, enhances efficiency, and ensures compliance with statutory provisions. Understanding the significance, benefits, and step-by-step procedure empowers importers and exporters to navigate customs processes seamlessly, fostering trade growth and efficiency.
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Prepared and Compiled by: CA Rajnish Kumar, New Delhi-110024, Email: [email protected], Mobile: +91-8130883807
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