Overview of AD Code
For starting any business of Import and Export in India, one must have two Registrations as per the Indian Government, out of which one is IEC (Import-Export Code) and another one is AD (Authorised Dealer) Code Registration.
AD Code is a 14-digit number issued for the customs clearance of the goods. This AD Code aims to ensure that the foreign currency used for transactions in an exporter’s current account comes from a legal channel.
AD Code is provided by the bank where he holds the business or current account. AD Code is printed on the bank’s letterhead in the set format as prescribed by the Directorate General of Foreign Trade (DGFT). The bank which is authorised to grant AD Code must deal with foreign currency. Registering AD Code at the port where goods are sent for custom clearance is mandatory. Without port registration of AD Code, the shipping bill number will not be generated, which is a must for the export of goods.
On 14th June 2022, the Directorate General of Systems and Data Management issued new changes made in respect of the AD Code. The new changes are as follows:
Benefits of AD Code
Following are the various benefits of obtaining AD Code:
Documents Required to Obtain AD Code
Following are the documents that are required to be submitted while obtaining the AD Code:
Procedure to Obtain AD Code
One has to request their bank for the grant of information on the AD Code of the bank. Once the bank gets the letter of request, then it provides the information in writing. Such a letter must contain information about the applicant’s organisation or business and the export transaction. The complete procedure for obtaining the AD Code is as follows: