How to Modify Your AD Code Details After a Change in Bank Account?

The AD code is essential for facilitating foreign transactions. Furthermore, the RBI’s authorized banks are responsible for issuing this 14-digit code on the letterhead. However, there is a beneficial point for exporters. There is no requirement for the renewal of the AD code registration certificate. In simple words, the export-import code is valid for a lifetime. Imagine a situation where the exporter makes changes to its bank account. Then, it will impact the code. After the changes in the bank account, modification of the code is also mandatory. In this comprehensive guide, we will explore why modifying authorized dealer code details is important after making changes to the bank account. Let’s explore it in more detail.

How is AD Code Registration Connected to Banks?

There are several banks under the RBI instruction that deal with foreign exchange. Meanwhile, the RBI’s authorized banks are responsible for issuing the 14-digit AD code. The exporters who deal with the export-import of goods need to obtain this 14-digit unique code. Between the customs department and exporters, the banks serve as the intermediary. Before the AD code letter approval, the banks verify business registration details. Ultimately, this code plays a crucial role in connecting export-import operations to the current account. Even the exporters can only create shipping invoices when they have an authorized dealer code. 

When Exporters Need to Modify AD Code Details?

It is common to say that the export dealer code is valid for a lifetime. Meaning, there is no requirement to modify the certificate. However, here are a few exemptions:

• Change in Bank & Details: The primary concern regarding the AD code registration and HS code lies with the banks. If, in a case, the exporter switches its current account with another bank or branch, they will need to register for a new code. With a new bank, register for a new code.
• Change in Port: The exporter needs to register the 14-digit code at every separate port. If a new port is selected for export, it is required to register a new AD code for that port. ICEGATE is the official portal for registration for the AD code. 
• Change in business details: Any changes in the company’s official details that are linked to the AD code, modifications in the code, are critical. In cases where the exporter alters the company name or official address, an update is mandatory.

A Comprehensive Process of AD Code Modification

As previously stated, the authorized dealer code remains valid for a lifetime. But the exemptions come when the exporter makes changes in bank details or business official details. The following outlines the procedure to acquire a new AD code:

Step 1: Obtain the new AD code letter

If the exporter switches its bank, it must ensure that the current account deals with export transactions. Request the new bank and ask for the new AD code letter. Upon request for approval, the bank will issue a code on the letterhead. The letter determines that you are legally connected to an authorized bank.

Step 2: Prepare the Necessary Document

With the new bank, the fresh details of the account are further mandatory. The specific documents needed are

• Obtain soft copies of the AD Code letter from the new bank.
• Copy of your Import-Export Code (IEC) certificate.
• Copy of your GST registration certificate.
• A cancelled cheque from your new bank account.
• Company PAN Card.
• Board Resolution (if applicable for companies).
• PAN and Aadhaar card of the authorized signatory.
• Passport-size photo of the authorized signatory.
• A filled-in application form as per the bank’s or customs’ requirements.

Step 2: Application submission for Modification

To obtain a new authorized dealer code, register with the customs department. 

Otherwise, apply a request letter for the 14-digit code modification. Access the official website ICEGATE to register a new code.

Step 4:  Complete Application Form

For new registration, fill out the application form accurately. It is essential to verify that the information you provide corresponds with the original business and bank details. Furthermore, the uploaded document must be in scanned format.

Step 5: Verification of Application

Upon successful submission for a new AD code bank account registration, the details will be verified by the customs department. If they are satisfied with the details, a new AD code will be registered.

This is the last stage for the modification of a new code. Upon approval, the exporters can use it to file shipping bills.

The Specific Consideration You Must Know

The need to register the AD code at every port has ended. It means that when an exporter is once registered on ICEGATE at any port, it will register automatically at all customs locations. Now, you are no longer required to apply for registration at every port.

The modification of the authorized dealer code is also essential to ensure that any export incentives are credited accurately to a new bank account. 

What are the Consequences of not obtaining a New AD code?

The registration for the AD code is generally required to create the shipping bill on ICEGATE. It ensures that the amount you are receiving comes from an authorized channel. In short, it is used to prevent illicit activities. On the other hand, when the exporters fail to apply for a new AD code registration process in ICEGATE, they can face serious challenges. The major one is the shipping bill. It means you will not be able to create an invoice on the portal. 

The major effects are:

The End | AD Code Registration Certificate Apply Online

Any minor changes to the exporter’s current bank account lead to new AD code registration. The authorized dealer code basically links to the current bank account of the exporter. Therefore, its modification becomes crucial whenever a single change occurs in the bank. Banks connect export foreign transactions with the current account of the exporter. If businesses fail to modify the AD code after the bank switch, they can face potential challenges. Engage an AD code registration consultant, such as LegalRaasta. Seek their expertise to know why you need to modify the 14-digit code. 

User Query: AD Code Registration for Foreign Trade Operations

Got Questions? Our Quirky FAQ Page Has All the Answers You 

1. How can I modify the bank details for the AD code?

Ans.  If you want to change the bank’s details, visit the ICEGATE. Mention the details, such as the bank name, account number, and name of the branch. 

2. How to obtain the bank ad code?

Ans. The businesses that are associated with international trade can obtain the certificate of AD code through the current bank. Apply for the AD code by loading in precise information and submitting important documents. For AD code registration, the ICE number is important. 

3. Can I use a single code at all port locations?

Ans. Yes, once you register the code at a single port, it will become valid for all customs locations.

4. What is the ICEGATE customer care number?

Ans. For any query, the exporters can contact the customer care toll-free number 1800-3010-1000.

5. Is each new AD code required for a different bank account?

Ans. Yes, if an exporter uses each bank account for foreign transactions, they must obtain a separate AD code.