AD Code Registration - Fee, Process & Documents Required
The AD Code, or Authorized Dealer Code, is a unique 7-digit number provided by banks for foreign currency transactions. Both Import Export Code and AD Code registrations are crucial for every exporting business. AD Code registration is essential for customs clearance of goods from India.
Registration of AD Code on the Icegate portal must be completed separately for each port. The purpose of this registration is to verify that foreign currency transactions in the exporter's bank account are legitimate.
Why is AD Code Registration Required?
- Businesses intending to export goods from India must possess an AD code for several reasons, outlined below:
- Essential for Submitting Mandatory Export Documents
- Facilitates Direct Transfer of Credit to Trader's Account
- Submission of Shipping Bill for Customs Clearance
- Vital for Claiming Incentives and Refunds
- Required by Importers for Payment Release
- Enables Port Registration for Export via AD Code Icegate Online Platform
Documents Required for AD Code Registration
Exporters are required to produce the following documents to obtain AD code certification from the respective bank
The necessary documents for obtaining an AD code include:
- AD Code letter issued on banker's letterhead
- GST Registration Certificate
- Import Export Code
- PAN Card
- Request Letter or Authorization Letter for AD Code on official letterhead
- PAN, Aadhaar Card, and Voter ID/Passport of owners/Partners/Directors
- Memorandum of Association (MOA), Articles of Association (AOA), and Certificate of Incorporation (COI) for companies
- Partnership Deed for partnership firms
Process for AD Code Registration for India Port
The online AD code registration process is challenging, taking time
from the usual registrations. Here is the procedure for AD code registration online:
Visit Forex Bank:
Go to the Forex bank, where all your business
transactions have been made because this bank will only issue an AD code for you.
Submission of Application:
The Applicant must write a letter to the branch
manager, in which the applicant must mention the request for an AD code, along with all
required documents.
Obtain an AD Code Letter:
The applicant will receive the letter from the bank
once the application is accepted. The letter should be printed on the bank's letterhead
and in the prescribed form by the Directorate General of Foreign Trade (DGFT).
AD Code Registration for All Exporting Ports:
Once the applicant receives the AD
code letter, then the applicant can register for an AD code at each port from the
export.
ICEGATE AD Code Registration 2.0 Process:
- Visit ICEGATE 2.O website
- If the applicant is a new user, create your account from the ICEGATE 2.O portal.
- Need to submit all required documents, which are mentioned above.
- Once, the online application has been filed along with all required documents. The Applicant need to wait for the 3-4 working days for the approval of the ICEGATE 2.O department.
- Once the ID password has been generated, the applicant may proceed for the port registration.
Time Taken to Get AD Code Registration for India Port
Completing the AD Code registration for India Port will take
7 to 10 working days.
Benefits of AD Code Registration for India Port
- Trace Foreign Currency Trades: The AD code registration permits the
government/authorities to trace the foreign currency of trades. It helps to create
stability and transparency in the economy to know about the foreign exchange
transactions done by the exporters and importers.
- Government Benefits: AD code registration assists in subsidies or incentives
directly deposited into the exporter’s bank account.
- Customs Clearance: It is necessary to generate the shipping bills, which play a
vital role in customs clearance in import-export affairs. If the code is not registered,
then it won't be easy to generate the shipping bills.
- Registration’s Validity: Once the AD code is registered online, it holds lifetime
validity with one-time fees. It leads to accessibility and functional continuity without
much expense.
- Online Registration Process: The AD code registration process is done online,
providing exporters with the convenience of digital transactions and a hassle-free
process as it eliminates physical visits to regulatory offices.
BizFoc Your AD Code Consultant in India
With BizFoc, you can streamline the authorization process for your AD code with ease and efficiency. Our team of seasoned professionals specializes in guiding clients through every step of the registration and approval process, ensuring a seamless experience from start to finish. We understand the complexities involved in obtaining AD code authorization and are committed to providing comprehensive support and assistance to ensure that your registration journey is smooth and hassle-free. Trust BizFoc to navigate the intricacies of AD code authorization, allowing you to focus on your core business operations with confidence and peace of mind.
Conclusion
As an exporter having AD Code is a mandatory regulatory compliance in India. Businesses are Required to register themselves in order to carry international trade and transition. The ad code is a 14 digit unique identity that is obtained by every merchant and EXIM Business Owner in India.
FAQ - Related to AD Code Registration
Users with registration can log in to the ICEGATE platform and check the status of their AD Code Registration by accessing the Documents Tracking system.
AD Code refers to a 7-digit distinctive code issued by the Reserve Bank of India (RBI) to each Authorized Branch of a Bank engaged in foreign transactions.
The status of an AD code application can be verified online through the ICEGATE portal. Upon registration of the AD Code by Customs, a confirmation email is dispatched to the email address on record.
AD Code serves as a unique registration number allocated by an Authorized Dealer Bank for export transactions.
To secure a 7-digit AD code, a formal request letter must be submitted to the bank branch on official letterhead. Subsequently, an online application is to be completed on the ICEGATE portal, along with the necessary documentation for linking the AD Code with customs.