byShine legal India                        Published On 2025-07-01             

Businesses that import or export goods need an AD Code. They must register this AD code with customs before sending the shipments overseas. The AD code helps customs authorities to track and confirm exports, which makes the process faster. Without an AD code, businesses may face delays and difficulties with customs clearance. The AD Code links banks with customs to support a clear and efficient process for international trade payments.

Meaning of AD code 

An Authorised Dealer (AD) Code is a 14-digit unique identifier issued by banks that are authorised by the Reserve Bank of India (RBI). An AD code is needed for businesses to clear goods through customs when exporting goods. The AD code is given once the exporter gets their Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). 

Requirement for AD code registration

After obtaining a unique code from their bank, exporters are required to register their AD codes with Indian customs via the ICEGATE portal. The AD code is essential for both foreign exchange transactions and customs clearance. Once the AD code is obtained, it must be included in all export documents, which makes it easier for customs to process and track shipments.

Why is AD code registration required

The AD code helps exporters to comply with India’s foreign trade rules and allows them to receive payments in foreign currency directly into their bank accounts. Exporters must register their AD code in order to guarantee efficient customs clearance and proper handling of foreign exchange transactions. The registration of the AD code also helps in tracking and reporting export transactions for accurate financial accounting and legal compliance. Without this AD code, exporters would have a difficult time shipping goods abroad.

Application process for registration of AD code

1. Contact an authorized bank - Get in touch with a bank that is approved to deal with foreign exchange transactions. These banks are generally commercial institutions that are licensed by the Reserve Bank of India (RBI)

2. Application form submission - Request the AD Code application form at your bank and fill in the necessary information regarding your business and intended trade activities.

3. Document verification by the bank - Submit the completed AD code form and supporting documents to your bank for verification.

4. Comply with the bank’s request for any additional documents or explanations, if needed - If the bank needs more information or clarification regarding the details or documents with respect to the registration of the AD code, provide it quickly to avoid delays in the registration process.

5. Bank’s approval and issuance of AD code - Following verification, the bank will authorise your AD code registration and will provide the AD code, which is typically printed on official bank letterhead.

6. Document submission to the customs - Exporters are required to provide their AD Code along with other relevant supporting documents to the customs authorities at the designated port of shipment. 

7. Port registration - Importers and exporters must register their AD code through the ICEGATE portal at the corresponding port. This makes the process of customs clearance easy.

8. Review and authorization - Once the documents have been submitted, customs officials will review and verify them. After approval from the customs officials, the AD Code is successfully linked to the port, which allows the exporter to proceed with customs clearance for their shipments.

9. Start using your AD code - After your AD code is registered, you can use it for handling foreign currency, clearing goods through customs and doing other international trade activities. It also allows you to receive any government incentives or subsidies for exporters.

Checklist of documents for AD Code registration

• Bank certificate
• GST certificate
• AD code lette
• Import Export Code (IEC)
• Company PAN card
• Cancelled cheque of the company’s bank account
• Class 3 Digital Signature Certificate (DSC)
• Shipping  bills (may be required)

How long does AD code remain valid

The Authorised Dealer (AD) code is issued by the banks, which  remains valid as long as the exporter maintains an active and properly functioning account with the issuing bank. The AD code does not have a set expiration date, however, its validity depends on the continued accuracy of the associated account and business information. 

Conclusion

Successfully registering for an AD code is crucial for conducting international trade efficiently. The AD Code speeds up the customs process and also helps to calculate export duties and ensures everything is done legally. It also facilitates customs procedures and strengthens your business’s ability to engage in global markets. At Shine Legal India, we make AD Code registration and port linking easy. Our team takes care of everything, from working with your bank to submitting the code to customs. Whether you are exporting for the first time or adding new ports we help you stay fully compliant with all rules.