AD Code Registration

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:

• AD Code with an associated bank account is now required to register in the system at only one port rather than registering at every port, and thereafter the AD Code is made available at all customs locations. And the same is required to register online at ICEGATE. Earlier, AD Code was required for each port separately for custom clearance of export or import of goods. 
• Once an AD Code is registered against an Import-Export Code at any port, then the same can be used for all ports. And there is no requirement for separate registration at other ports for filing of documents.
• Any change or amendment in a particular AD Code account details is to be done at that port of registration only; the post selected by the Import Export Code (IEC) at the time of making the application for registration.

• Multiple AD Codes and associated accounts can be registered against an Import-Export Code (IEC). All multiple AD Codes must register in the system at any of the ports. There can be different ports of registration for different AD Codes.
• For existing AD Codes and associated accounts registered for an IEC, the customs port where the last shipping bill with a specific AD Code is filed is deemed a port of registration for that AD Code in the system.
• The details of the port of registration for each registered AD Code against an IEC are made available on the ICEGATE.

Benefits of AD Code

Following are the various benefits of obtaining AD Code:

• It assists in developing business and reaching out to a bigger market at the global level. It allows the business to flourish at a rapid pace. 
• Obtaining an AD Code is a one-time process. It means there is no requirement to submit any returns.
• The AD Code is valid till the existence of the business of its holder. So, there is no requirement to renew it. 
• Based on the AD Code, the businesses receive multiple incentives for their imports or exports from the Directorate General of Foreign Trade, Export Promotion Council, Customs and several other Government Departments.
• It is one of the crucial documents to be submitted for export customs clearance. Without it, one cannot produce a shipping bill on ICEGATE, the Indian Customs Electronic Data Exchange Platform. 
• AD Code allows transferring credit to the trader’s current account directly.
• Any Government advantages one wishes to avail of are credited straight to his current account if he has an AD Code registered custom.