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What is AD code and how to find AD code of Bank

If you are an exporter in India, you know the two most important permits you need to export your goods. The first is a business identification number issued by the Import Export Code (IEC), issued by the Directorate General of Foreign Trade (DGFT). and another is an authorized dealer code (AD code), without it cannot complete the customs clearance of your goods. In this article we have discussed about what is AD code and how to find AD code of Bank.

In this complete article on the AD code, we will touch on its importance of export business in India. To find out:
  • What is an AD code?
  • Why does an exporter need an AD code?
  • How do you apply for an AD code?
  • How do you register your AD code with Customs?
  • Can you edit an AD code?

What is an AD Code (Authorized Dealer)?

An AD code is a 14-digit numeric code that you can get from the bank with which you have your current account to run your import-export business. The code is printed in a document with the bank's letterhead in the format prescribed by DGFT.

A bank must be an authorized dealer of foreign currency in order to be able to issue an ED code. This is in line with the purpose behind the AD code, which ensures that foreign currency transactions in the current account of the exporter come from the legal trade of foreign currency.

Exporters need to register their ED code with the port or airport from where they want to ship their goods abroad. If the shipment is sent from an Internal Container Depot (ICD), then the AD code registration with the attached port is required for that facility. For example, if you ship from Ahmadabad’s ICD Khodiyar, you will have to register there and transport goods through the two ports at Mundra Port in Gujarat and/or Nhava Sheva in Maharashtra.

There is a lifelong validation of an AD code registration However, if an exporter ship from more than one port, in the same state or in different states; they must register the AD code for these ports. In that case, the AD code will be different for each of these ports.

#Why do exporters need AD codes and How to find AD code of Bank?

The AD code is absolutely necessary for the export process because:

The Bill of Lading is one of the three essential documents required for export customs clearance. And if you don't register your AD code, you won't be able to generate shipping invoices on Ice gate, India's customs electronic data exchange platform. When you register your AD code with Customs, all government benefits you enjoy, including customs discounts and waivers, and refunds on goods and services tax (GST), will be deposited directly into your checking account.

#Know the process of application how do I apply for the AD code?

You can request an AD code by contacting the bank you currently have an account with. The application must be in the following format to the Bank:

To,
Branch Manager,
(Bank Name),
(Branch Name),
Subject:  AD Code Request
Dear Sir / Madam,
I Owner of Current Account (Number) at the (Branch Name) of (Bank Name) wants to apply for an Authorized Distributor Code (AD) (specify the time frame) because you are in the process of exporting a shipment abroad. In order to ship the product, you must register the AD code with customs at (port name).
Issue a letter containing the AD code to the Commissioner of Customs at (named port). I also request that the letter be filled out in the format established by the customs attached hereto (shown in the format below). Import and export codes within (including IEC numbers).

We appreciate your urgent response to this request.
Thank you.
(Name/Signature)

After applying at the bank, an AD code will be issued. The bank authorization letter with AD code must be in Appendix A in the following format:

#How do I register a promo code with customs?

After receiving the AD code from the bank authorization letter, the next step is to register with customs. This process is completely digital, contactless, and must be completed on the Indian Customs website, Ice gate. The registration process is as follows.

1- Log in to Ice gate Portal
2- In the left pane, click Manage Bank Accounts.
3- Select the "Register Authorized Dealer Code" option to enable export on the Manage Bank Account page that opens.
4- Click on e-Sanchit in the left pane. This leads to a page where you can save the document as an electronic file. Upload the required documents in the prescribed format with a digital signature as indicated on the page. 

You must upload the following documents:
  • Letter from Appendix A with Bank Authorization
  • AD code (original)
  • AD Code
  • Letter from exporter requesting/licensed registration Letter from customs broker requesting AD Code registration
  • GST registration (copy)
  • Import/export code (copy)
  • Permanent account number or PAN (copy)
  • Income declaration for the last 3 years (copy)
  • Last year's bankbook balance/balance (copy)
  • Certificate of exporting country (copy if any)
  • Production license (copy if available)
  • PAN, Aadhaar, Voter ID/Passport and Export Partner IT Declaration
  • PAN, Aadhaar and Voter ID / Signer Passport.
5- When a document is successfully uploaded, an Image Reference Number (IRN) and Document Reference Number (DRN) are generated.
6- If you encounter recurring errors while uploading documents, you can email us at saksham.seva@icegate.gov.in.
7- Now go back to the Export Facilitated Bank Account Management page and click Add New Account in the Authorized Distributor Code Registration panel.
8- Enter the required bank details, IRN and port location code (eg Nhava Sheva code - INNSA), then click Submit.
9- If the data entered is valid, a 6-digit One Time Password (OTP) will be sent to your email address and mobile phone number and you will be redirected to the OTP page. 
10- Check your OTP. This completes your registration request. Now the request goes to customs and gets approved/rejected after passing the documents.
11- Exporters can track the status of their request in the Authorized Distributor Code registration panel by clicking the status icon.
12- If your request is approved, you can view your registered AD code and bank details on the same dashboard. You can still add new AD codes, accounts and locations by following the same procedure.


Tags

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