Complete Guide to AD Code: For Global Shipping

Global retail eCommerce sales are expected to reach USD 3.6 trillion in 2025, and and could cross USD 4.9 trillion by 2030. So to venture into the global market and expand business is every entrepreneur’s dream come true. But stepping into cross-border trade is no small feat. There are legal documentation processes and international compliance requirements one needs to be aware of. 

However, selling abroad requires understanding legal requirements, documentation, and shipping processes. One essential document is the Authorised Dealer (AD) Code, which acts like a passport for your goods. Without it, shipments cannot be processed through Indian ports. Learning how the AD Code works and how to get one can help you ship internationally with confidence, reduce delays, and grow your business efficiently.

Let’s delve into what AD code is and why one needs AD code for export.

What is AD Code?

An Authorised Dealer (AD) Code is a unique identification number issued by the bank where an exporter holds a business account. It is typically a 14-digit code, though some banks issue 8-digit codes. The AD code links the exporter’s bank with the customs department.

It is obtained after registering for an Import Export Code (IEC) and is mandatory for export customs clearance. Without an AD code, shipping bills cannot be generated on the ICEGATE portal, and goods cannot be cleared for export.

What is The Significance of an AD Code?

An AD code is necessary for three segments of international shipping –

• For Exporters: When running an export business, this code is needed to receive foreign payments for goods or services sold abroad. It helps ensure that all export-related money transfers are recorded and verified through authorised banking channels.
• For Importers: Importers also require an AD code while making payments for goods purchased from overseas. This code helps in ensuring that foreign exchange transactions related to imports follow the Reserve  Bank of India (RBI) guidelines and remain transparent.
• Trade Documentation: The AD code is often a mandatory requirement in various trade documents, such as the Bill of Lading, Shipping Bill, or Letter of Credit. It acts as an official reference that links your bank with customs authorities, making it easier to track and authorise foreign exchange transactions.

Why an AD Code Is Crucial for Your Export-Import Business?

Here are the key ways an AD code can make your export-import journey easier and more efficient: 

1. Helps in the Export Process

For customs clearance, a shipping bill is mandatory, and it cannot be generated without an AD code. For customs clearance, a shipping bill is required. Without the AD code, the shipping bill for your cargo cannot be generated. W.e.f August 03, 2018, commercial shipments up to a value limit of INR 5,00,000 are allowed through courier mode, using CSB-V, or Courier Shipping Bill-V. CSB-V cannot be generated without AD code registration. 

The AD code also enables government benefits like GST refund, duty rebates, and exemptions. These amounts are credited directly to your business’s linked bank account. 

2. Keeping Tabs on Foreign Currency Trade

The AD code registration system for foreign currency trades allows the government to monitor these transactions. This helps promote transparency and economic stability. It lets authorities track the foreign exchange dealings of businesses that import and export goods and services. 

Having insight into this cross-border flow of money helps regulators ensure the overall health of the nation’s economy.

3. Necessary for Customs Clearance

Generating a shipping bill is essential for getting your goods through customs during import and export operations. Without a registered AD code, generating this bill isn’t possible. The AD code links your business to customs authorities and ensures all your export and import transactions are properly documented. Having it means your shipments can move faster through the customer clearance process, and help authorities to easily verify your business credentials.

4. Government Benefits Paid Directly

With a registered AD code, government incentives, refunds, or subsidies are credited straight to your business bank account. This cuts down paperwork, speeds up processing, and ensures timely access to financial support for your exports. 

How To Apply for AD Code?

Exporters are required to register an AD code with the airport or port from which they plan to ship their goods across borders. In case an exporter ships packages from more than one port, they must register an AD Code for each of the ports, irrespective of whether the ports are in the same states or different states. 

Follow these steps to get your Authorised Dealer code:

• Head over to the bank where your business current account exists. This is the bank that will issue your Authorised Dealer (AD) code.
• Speak to the branch manager and formally apply for an AD code. Provide all the necessary details and supporting documentation that the bank asks for.
• Once your application gets processed and approved, the bank will provide you with an official AD code letter. This should follow the format specified by the Directorate General of Foreign Trade and must be printed on the bank’s letterhead. Hold onto this letter as it’s proof of your AD code registration.
• With that AD code letter in hand, you can then register for an AD code at each port you plan to export from. Present the letter to the respective customs authorities at those ports to complete the registration process.

One Important Note: Keep in mind there is no online application facility to obtain an AD code. The process requires you to visit your business bank in person and then the customs offices at each exporting port location.

How to Register Your AD Code With Customs?

Now that you have your AD code, you need to follow the steps given below to register the AD Code on ICEGATE:

1. The following are the steps to register the AD Code on ICEGATE:

• Go to the ICEGATE portal on the official website.
• Create an ID if you don’t have one
• Enter your credentials, like your user ID and password, to log in.
• After logging in, look for the “Filing Services” section and click on the option labelled “e-Sanchit.”

2. Upload Supporting Documents and Get Your Reference Numbers

In the e-Sanchit section, you’ll find the option to upload documents. Make sure you have all the required supporting documents ready for your AD Code registration. Upload the necessary ones following the provided guidelines.

After the upload is successful, the system will generate a Document Reference Number (DRN) and an Invoice Reference Number (IRN). Save them for future reference. 

3. Head to Financial Services

Return to the main ICEGATE portal page by clicking the appropriate link or navigating back. On the main page, look for the Financial Services section. 

4. Choose Bank Account Management and AD Code Registration

Within Financial Services, locate and select the Bank Account Management option.  From the next set of options, choose AD Code Registration.

5. Fill in the Registration Form

You’ll now see the AD Code registration form. Fill in all the required details completely and accurately. Be sure to provide your company details, contact information, PAN card details, IEC certificate details, GST certificate details, and any other relevant information asked for.

6. Submit Your AD Code Registration Form

Before hitting that submit button, thoroughly review all the information you entered then submit your AD Code registration. The system will then process your request. Go ahead and submit your AD Code registration. The system will then process your request.

What Documents are Required to Register for an AD Code?

To register for AD Code, you will need the following documents handy:

• AD code letter
• Bank Certificate according to Customs Public Notice No. 93/2020 dated 29.07.2020 (format attached)
• Copy of Company PAN Card (with seal and signature)
• Copy of GST Certificate (with seal and signature)
• Copy of IEC Certificate (with Seal and signature)
• The company-cancelled cheque
• Class 3 Digital Signature Certificate (DSC)
• Director or Proprietor, or Partner information (Copy of PAN Card, Voter ID, Aadhaar card, Passport)
• Export House Certificate (this is optional)

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Conclusion

If you’re someone looking to kickstart a business involving import-export, it is always advisable to be ready with all legal formalities for a seamless transaction. This means registering both the IEC code and AD code before starting your operations.  The AD code connects your bank with customs, making sure all foreign currency transactions are legal and easy to track. 

An AD Code, once registered, has lifetime validity. If the AD code is missing or entered incorrectly, the shipment can leave the carrier’s facility but won’t be processed. It will be blocked at the foreign border or customs. Having your AD code and other documents can help you protect your shipment, clear customs, and keep your import-export business running without delays. It’s a small step that can make a big difference in going global with your product.