AD Code Registration Online Application in India

The export-import activities cover a large area in India. Individuals or businesses are required to obtain a comprehensive Indian government approval before initiating the operations of export-import. Meanwhile, to keep the data of foreign exchange transactions that are utilized by the Indian entrepreneurs, the Government of India mandates the AD code registration. The registration is a process in which the operator obtains a 14-digit number.

In addition, the authorized bank under the RBI (Reserve Bank of India) is responsible for providing the 14-digit number (AD code). The major motive to mandate online AD code registration is to manage the foreign currency flow. In this exhaustive guide, we will explore the characterization of registration for the AD code, including what its use is, why it is obligatory to obtain, and the importance of the Import-Export Code prior to acquiring the Authorized Dealer code.

What is an AD Code Registration Certificate?

To manage international trade, a specific type of code is required, which is issued by the origin country’s government, whether it is a government bank or other body. For the management of foreign exchange transactions, the Indian government mandated registration for the AD code. 

Whoever, whether an individual or a business, is involved in import & export activities must obtain an AD code certificate, which contains a unique 14-digit code. This critical code is granted by the bank where exporters keep an existing business fund. In India, the structure of the “Authorized Dealer Code” was made in accordance with the Foreign Exchange Management Act of 1999.

On the other side, through the registration, the exporter’s current bank account interlinks with its export & import dealings. It demonstrates that for the customs clearance to trade in international markets, the exporters are required to adhere to “FEMA,” a comprehensive foreign exchange governing law. 

Primary Functions of AD Code Bank Account Registration

For the import-export transactions, the Authorized Dealer (AD) code serves as the unique identifier for the business. The major functions of this 14-digit unique code are

• Provides Customs Clearance: To file shipping bills, the exporters require an AD code, which contains 14-digit numbers. This code is required for customs clearance. through which it is ensured that the operator adheres to international shipments and export-import rules and regulations.
• Track Foreign Exchange:  The import-export foreign exchange activities connect to RBI’s authorized banks, in which the exporter holds a current account. The interlinking makes the RBI operate on foreign currency inflows and outflows. It is critical to maintain the exchange control regulations and prevent financial irregularities.
• Regulatory Compliance: With the registration of the AD code online, the businesses that are associated with export-import stay compliant within a specific framework. Complying with the regulations for international trade ensures that only authorized boards manage transactions.
• Government Opportunities: With the Authorized Dealer (AD) code, the exporters can utilize the benefit of government incentives. The benefits exporters can enjoy are GST refunds and duty rebates.
• Ensure Smooth Operation: The linking of foreign transactions to the RBI’s authorized banks makes the export and import process more streamlined. It ensures that the operator is connected to a legally authorized bank and does not perform illicit activities. 

Who Needs an AD Code Registration Certificate?

The authorized dealer code is not issued to everyone. It is granted to those who deal in importing and exporting goods or services. In broad terms, it is obtained by:

Importers & Exporters

The businesses or individuals who are associated with importing or exporting activities in India.

E-Commerce Sellers

Obtaining the AD code is also essential to those who ship goods internationally. It is basically secured by the e-commerce sellers.

Freight Forwarders & Shipping Companies

The entities that are associated with the processing of customs clearance and global shipments need to apply for AD code registration online.

What Documentation Is Necessary for an Authorized Dealer Code?

To obtain the AD code from the current bank account, the exporters are required to prepare several documents. The required documents consist of the GST registration certificate for identity and address verification. Documents serve as proof, which is kept in storage by the government body to avoid illicit activity.

The specific documents that are required are:

What is the AD Code Registration Process in ICEGATE?

Bank Allot AD Code

For the foreign exchange transaction management, the operator needs to obtain the AD code. It is provided by the bank where your current account is open. The bank will provide an authorization letter on letterhead that includes the authorized dealer code.

Navigate the ICEGATE Portal

ICEGATE serves as the sole official platform utilized for the registration of the AD code. To make an account on it, the applicant needs to mention essential details such as IEC, PAN, and Class 3 DSC.

Add Foreign Remittance Account

On the option of “Add new Bank Account,” you need to  share specific details, including 

• Name of Bank
• Name of Branch
• AD Code Certificate
• Current Bank Account Number
• Customs Location

Provide Necessary Documents

Prepare the specified documents in advance, including the AD code letter, which the current bank issues. All documents and important certificates must be uploaded online on the portal.

Submit an OTP Verification

After the application and document submission, you will receive an OTP at your registered email and contact number. For confirmation, fill out the OTP.

Customer Clearance Approval

After the verification of documents and other specific details. Upon the acceptance of the submitted application, the customs officer will associate the AD code with the IEC. 

Now, you can freely deal with export-import after customs clearance and foreign remittance. 

Ongoing Compliance Requirement after AD Code Approval

Registration with the relevant authority is not a one-time requirement, but its maintenance is also crucial. The post-compliance includes the management of IEC (Import-Export Code), submitting billing details online, and many more. 

Whoever is associated with export-import activities must ensure that the IEC they have received is active or not. With it, maintenance of the GST registration certificate is also crucial to operate goods & services legally. Every specific port required an AD code for customs clearance. The exporter needs to submit the code to the customs officer at each specific port.

In the end, to ensure compliance with accuracy in documents, the inspection might be conducted by the customs authorities.

How is AD Code Related to IEC Code?

AD Registration Online: The AD code registration process is a way to obtain a 14-digit unique number from the exporter’s current bank account. It is only issued by the SBI’s authorized bank. In the meantime, the Authorized Dealer Code is crucial for maintaining foreign transactions and is also important for customs.

IEC Code: Meanwhile, the IEC (Import-Export Code) is also a 10-digit unique number that is issued by the DGFT. It provides the identities of those businesses that are involved in export-import activities. 

However, the main relation between them is that the exporter cannot apply for registration as an Authorized Dealer (AD) until they have an IEC. To obtain the AD code, the IEC is a prerequisite. 

How Does LegalRaasta Help with Registration for AD Code?

Many entrepreneurs who deal with import-export activities are unaware of the regulatory requirements. Navigating the registration process with a lack of knowledge can create potential challenges. But you do not need to worry, as we make the process hassle-free. At LegalRaasta Private Limited, the experts help businesses by handling their documents. 

What do we provide? It is a consulting company that assists in navigating the process. Overall, the major work done by the firm is

• Handles the Documents for AD code registration
• Reduce the administrative burden and complex registration process to save time and effort.
• We ensure that the application adheres to the regulations set forth by the DGFT 
• Provides assistance to register for the AD code on the portal, ICEGATE.
• Assist in completing the registration process step-by-step successfully.
• Makes the process hassle-free and provides consultancy for free

Our AD Code Certificate Service Further Includes

• Provides DSC for Authorized Dealer Code registration.
• Issue GST Registration Certificate
• Apply for a BIS license if your service falls under mandatory registration.
• Manage the CDSCO registration process
• Navigate the EPR certification process for your plastic packaging or battery services
• Legally sell, stock, and distribute medical devices as we handle the MD-42 registration certification procedure.

Conclusion | AD Code Bank Account Registration

The exporters are restricted from operating the import-export operation without a specific code. This code refers to the AD (Authorized Dealer), which is issued by banks authorized by the RBI. For the businesses, the code performs the vital role of providing customs clearance as well as linking the bank account with export-import transactions. To utilize the benefits for your import-export journey, navigate the registration process with LegalRaasta professionals. With years of experience in AD code certificate provision, we assist you throughout the procedure.

FAQ | Registration for AD code Certificate Apply Online

1. Is it mandatory to write a letter to the bank for obtaining an AD code?

Ans. Yes, the letter is required for a formal request to obtain the AD code from the current bank account. It is essential to ensure that the letter is composed in a formal manner.

2. What are the AD code registration fees?

Ans. For AD code registration in India, the exporter does not need to invest. This means there are no government fees included. Nevertheless, the applicant must pay the bank to receive the Authorized Dealer Code.

3. Is a DSC required for obtaining the Authorized Dealer Code?

Ans. Yes, a DSC (Digital Signature Certificate) is essential during the registration of the AD code. 

4. How manys takes took for AD code registration process?

Ans. The registration process generally takes 3-4 working days. However, the duration for customs clearance may be extended based on the verification process.

5. Is AD certificate renewal mandatory?

Ans. No, it is not renewed, as it is valid for a lifetime. However, the exporter might need to re-register if there are any changes brought into the current bank account or bank.