How to Get AD Code from Your Bank for Export Registration

Getting an AD Code from your bank is a must if you intend to export goods from India. The AD Code guarantees that your export transactions are processed through authorized banking channels and is necessary for customs clearance. This guide will help you obtain your bank's AD Code for export registration by explaining what it is, why it matters, and how to do it step-by-step.

What is AD Code in Bank?

A special 14-digit code known as the "Authorized Dealer Code" (AD Code) is given by banks that have been approved by the Reserve Bank of India (RBI) to deal in foreign exchange. This code allows for traceable and lawful international trade transactions by connecting your company's current account with customs authorities. Exporters are unable to create shipping bills or get their goods cleared by Indian customs without an AD Code.

Why is Bank AD Code Important for Export?

Mandatory for Customs Clearance: You must register your AD Code at the port or airport of shipment in order to export goods from India.
Assures Lawful Foreign Exchange Transactions: It guarantees that all export payments are handled via approved banking channels while adhering to customs and RBI rules.
Access to Government Benefits: The bank account associated with your registered AD Code receives direct credit for export incentives, GST refunds, and duty drawbacks.
Simplifies Export Documentation: Important export documents like bills of lading and shipping bills must be prepared using the AD Code.

Step-by-Step Guide: How to Get AD Code from Your Bank

1. Obtain an Import Export Code (IEC)

Before applying for an AD Code, you must have a valid Import Export Code (IEC) issued by the Directorate General of Foreign Trade (DGFT). IEC is a prerequisite for any export activity from India.

2. Choose an Authorized Dealer Bank

Select a bank that is authorized by the RBI to handle foreign exchange transactions. Major banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, and others are commonly chosen for this purpose.

3. Open a Current Account

You need a current account with your chosen authorized dealer bank. This account will be linked to your AD Code and used for all international trade transactions.

4. Prepare Required Documents

Gather the following documents for your AD Code application:

IEC certificate
PAN card of the business entity
GST registration certificate (if applicable)
Business registration/incorporation documents
Address proof of business premises
Board resolution (for companies)
Bank account details and statements
Cancelled cheque of the current account
Authorization letter (if required)

5. Write a Request Letter to the Bank

Draft a formal request letter addressed to your bank’s foreign exchange department, requesting issuance of the AD Code for export purposes. Attach all required documents to the letter.

6. Submit Application to the Bank

Submit your request letter and documents at your bank branch. The bank will verify your credentials and process your application.

7. Receive the AD Code Letter

Once verified, the bank will issue a 14-digit AD Code on its official letterhead, as per the format prescribed by DGFT and customs authorities.

8. Register the AD Code with Customs

Take the AD Code letter to the customs office at each port or airport from where you intend to export. Registration is port-specific; if you export from multiple ports, register the AD Code at each location. Many ports now allow online registration via the ICEGATE portal.

9. Complete Online Registration (If Applicable)

Some customs locations support digital AD Code registration. Upload scanned copies of your AD Code letter and supporting documents on the ICEGATE portal and follow the instructions to complete the process.

How to Register AD Code with Customs?

After getting the AD Code letter from your bank:

Visit the customs office at the port where you will export from
Submit the AD Code letter, IEC, GST certificate, and other required documents
Customs will verify and register your AD Code in their system (ICEGATE portal)

✔️ Note: You need to register the same AD Code separately at each port you plan to export from.

Key Points to Remember

The AD Code is mandatory for all exporters in India.
It is a 14-digit code issued by your authorized dealer bank.
Register the code at each port you export from.
No AD Code = No shipping bill = No exports.
The AD Code is valid for the lifetime of your business at that port, unless business or banking details change.

Conclusion

An essential tool for all Indian exporters is the AD Code. To make sure that your export operations are efficient, profitable, and compliant, it is essential to comprehend what an AD Code is in bank terminology and learn how to obtain one from the bank. You're actively facilitating quicker customs clearance, safe foreign exchange transactions, and access to beneficial government incentives by protecting this 14-digit code and carefully registering it at the ports of your choice. Don't let a missing AD Code stop you from achieving your global goals!

FAQs

1. What is AD Code in bank?

AD Code is a 14-digit Authorised Dealer Code issued by banks authorised by RBI for foreign exchange transactions related to exports and imports.

2. Why is AD Code required for export?

It is mandatory for customs clearance and for routing export proceeds to your bank account.

3. Who issues AD Code?

Your bank issues the AD Code letter, which you then register with customs.

4. Is AD Code same as IFSC code?

No, IFSC code is for domestic fund transfers within India, whereas AD Code is for international trade compliance.

5. Can I export without AD Code?

No, your shipping bills will not be processed without AD Code registration at customs.

6. What documents are needed to get AD Code?

IEC certificate, GST registration, PAN, cancelled cheque, and a request letter to the bank.

7. Do I need to register AD Code at every port?

Yes, it must be registered separately at each exporting port.

8. How much does it cost to get an AD Code?

Banks generally do not charge for issuing an AD Code letter, but customs may have a nominal registration fee.

9. Does AD Code expire?

No expiry, but if you change your bank or branch, you must register the new AD Code.

10. How to check if my AD Code is registered with customs?

Your CHA or customs broker can confirm registration status on the ICEGATE portal.