{"id":32668,"date":"2025-09-15T12:16:06","date_gmt":"2025-09-15T06:46:06","guid":{"rendered":"https:\/\/www.legalraasta.com\/blog\/?p=32668"},"modified":"2026-04-03T17:11:09","modified_gmt":"2026-04-03T11:41:09","slug":"ad-code-export-oriented-units","status":"publish","type":"post","link":"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/","title":{"rendered":"AD Code Registration for Export-Oriented Units (EOU)"},"content":{"rendered":"<p style=\"text-align: justify\"><span style=\"font-weight: 400\">Under the Foreign Trade Policy, the Government of India established the scheme &#8220;Export-Oriented Units.&#8221; In short, the core role of the establishment of EOU is to enhance the exportation in India. The development of the scheme was to support the exporters or manufacturing units by providing benefits. The businesses that are linked as Export Oriented Units are required to adhere to the specific requirements of DGFT. The top one is <\/span><a href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/\" target=\"_blank\" rel=\"noopener\"><b>AD code registration for EOUs<\/b><\/a><span style=\"font-weight: 400\">. Registration for the authorized dealer code is a prerequisite, as it helps with customs clearance and manages foreign transactions. This guide will explore the Export Oriented Units&#8217; compliance with the AD code, including benefits and the code&#8217;s role for shipments.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Export-Oriented_Units_EOU-_An_Overview\" title=\"Export-Oriented Units (EOU)- An Overview\">Export-Oriented Units (EOU)- An Overview<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#How_does_AD_Code_Registration_link_to_Export-Oriented_Units\" title=\"How does AD Code Registration link to Export-Oriented Units?\">How does AD Code Registration link to Export-Oriented Units?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Why_do_Export-Oriented_Units_EOUs_Need_an_AD_Code\" title=\"Why do Export-Oriented Units (EOUs) Need an AD Code?\">Why do Export-Oriented Units (EOUs) Need an AD Code?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Help_for_Shipping_Bill\" title=\"Help for Shipping Bill\">Help for Shipping Bill<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Ease_in_Foreign_Transactions\" title=\"Ease in Foreign Transactions\">Ease in Foreign Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Access_to_government_benefits\" title=\"Access to government benefits\">Access to government benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Track_Foreign_Exchange\" title=\"Track Foreign Exchange\">Track Foreign Exchange<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Port_registration_and_ICEGATE\" title=\"Port registration and ICEGATE\">Port registration and ICEGATE<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Key_Points_for_EOUs_Must_Know_about_AD_Code\" title=\"Key Points for EOUs Must Know about AD Code\">Key Points for EOUs Must Know about AD Code<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Final_Discussion_Bank_AD_Code_for_EOU_shipments\" title=\"Final Discussion |\u00a0 Bank AD Code for EOU shipments\">Final Discussion |\u00a0 Bank AD Code for EOU shipments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-export-oriented-units\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Export-Oriented_Units_EOU-_An_Overview\"><\/span><b>Export-Oriented Units (EOU)- An Overview<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">In India, EOUs act as the service or manufacturing units. These units work based on domestic sales. In general, the manufacturing or service units export their entire production items through domestic sales. The major aim of such units is to increase exportation at the international level as well as boost foreign currency earnings. Another role of units is to create employment for Indian youths. When an<\/span><b> Export Oriented Unit (EOU) exports goods or services,<\/b><span style=\"font-weight: 400\"> including raw materials, they do not need to pay customs duties. They can easily connect to potential global buyers and dealers. Furthermore, EOU is a recognized scheme that is described as the government&#8217;s export promotion strategy.\u00a0<\/span><\/p>\n<h3 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"How_does_AD_Code_Registration_link_to_Export-Oriented_Units\"><\/span><b>How does AD Code Registration link to Export-Oriented Units?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">Under the Export Oriented Units scheme, the businesses or manufacturers who are active in international exportation must be verified by registering for the AD code. DGFT and SEZs (Development Commissioners of Special Economic Zones) are responsible for overseeing the performance of EOUs. Read more points in the next section:<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li style=\"font-weight: 400\"><b>Banks Request: <\/b><span style=\"font-weight: 400\">The export-oriented units open their current account with RBI&#8217;s authorized banks, which deal in foreign exchange. Initially, they are required to submit an official letter to request that banks issue them an <\/span><b>AD code letter.<\/b><\/li>\n<li style=\"font-weight: 400\"><b>Customs Registration<\/b><span style=\"font-weight: 400\">: After the <strong>A<\/strong><\/span><b>D code letter approval<\/b><span style=\"font-weight: 400\"> on the letterhead by banks, the EOUs then submit a 14-digit unique code to the customs authority. Usually, the process is done through the online DGFT&#8217;s portal, ICEGATE.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Electronic Linkage: <\/b><span style=\"font-weight: 400\">The customs department scrutinizes all information and then links the <\/span><b>AD code with the EOU&#8217;s Import Export Code (IEC Number).\u00a0<\/b><\/li>\n<li style=\"font-weight: 400\"><b>Activation:<\/b><span style=\"font-weight: 400\"> Upon successful linking of the 14-digit code with the 10-digit IEC code, the export-oriented units can activate the process of export shipments to expand international trade activities.\u00a0<\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Why_do_Export-Oriented_Units_EOUs_Need_an_AD_Code\"><\/span><b>Why do Export-Oriented Units (EOUs) Need an AD Code?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">There is not a single reason to explain why the<\/span><b> registration of the AD code<\/b><span style=\"font-weight: 400\"> is mandatory, but there are several critical reasons. The common causes that are EOUs depend on the authorized dealer code:<\/span><\/p>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Help_for_Shipping_Bill\"><\/span><b>Help for Shipping Bill<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">To export goods or services internationally, the EOUs are required to generate the shipping bill and submit it to the customs department. It determines that exporters can only get customs clearance when they have a valid shipping bill. The invoice helps to authenticate the transaction&#8217;s legitimacy and ensure compliance with export regulations.\u00a0<\/span><\/p>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Ease_in_Foreign_Transactions\"><\/span><b>Ease in Foreign Transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">The guidelines and regulations for foreign exchange transactions are too strict. Meanwhile, the EOUs that hold the AD code can easily receive the foreign currency into their bank account. A 14-digit code helps to adhere to foreign trade policies for currency exchanges.<\/span><\/p>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Access_to_government_benefits\"><\/span><b>Access to government benefits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">To participate in foreign trade fairs and other benefits, such as GST refunds, duty drawbacks, etc.,<\/span><b> AD Code Registration for EOUs <\/b><span style=\"font-weight: 400\">is mandatory. By getting certified, EOUs can easily access these financial benefits directly in their bank account.\u00a0<\/span><\/p>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Track_Foreign_Exchange\"><\/span><b>Track Foreign Exchange<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">To keep the foreign exchange transaction transparent and disciplined, navigating the <\/span><b>AD Code registration process for exporters<\/b><span style=\"font-weight: 400\"> is essential. With registration, the code helps the regulatory body to manage and track foreign currency trades. Management of economic stability and transparency for a nation is critical to keep a positive image in front of the world.\u00a0<\/span><\/p>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Port_registration_and_ICEGATE\"><\/span><b>Port registration and ICEGATE<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">For the registration of the port from where goods are expected to be exported, the <\/span><b>DGFT AD Code for Export Units <\/b><span style=\"font-weight: 400\">is also important to generate the shipping bills on the ICEGATE (Indian Customs Electronic Gateway) portal.<\/span><\/p>\n<h3 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Key_Points_for_EOUs_Must_Know_about_AD_Code\"><\/span><b>Key Points for EOUs Must Know about AD Code<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">In case you are part of a new EOU and are not aware of its requirements, then this page is for you. In the previous sections, we have discussed why the 14-digit export code is compulsory for export-oriented units. But have you ever searched about its different key considerations? This can be under:<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">An AD code is issued by the banks where the exporter holds its current account.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">AD code letters can only be provided by those banks that deal with foreign exchange.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The <\/span><a href=\"https:\/\/www.legalraasta.com\/blog\/ad-code-registration-online-application-in-india\/\" target=\"_blank\" rel=\"noopener\"><b>AD code registration process<\/b><\/a><span style=\"font-weight: 400\"> is dead without the Import Export Code (IEC).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Authorized dealer code registration is a one-time process. It means export-oriented units do not require renewal.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The code will remain the same until the changes come in business details or the bank account.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The digital signature certificate is further crucial when applying for code, as it is required for online application submission.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Export-originated units are required to submit the AD code at each separate port.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">In case you make changes to bank details or business details, you must update the authorized dealer code.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Without a valid export code, units cannot claim the duty benefits, IGST refunds, and export incentives.\u00a0<\/span><\/li>\n<\/ul>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Final_Discussion_Bank_AD_Code_for_EOU_shipments\"><\/span><b>Final Discussion |\u00a0 Bank AD Code for EOU shipments<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">To conduct international trade, the export-oriented units are required to first obtain authorization. Meanwhile, the<\/span><b> AD code registration for EOUs<\/b><span style=\"font-weight: 400\"> is critical, as this 14-digit code allows them to trade globally. Shipping bills further depend on the code required during navigation of the ICEGATE portal. In essence, the export-oriented units must register their AD codes on ICEGATE against their IEC at each port. Registration is the commitment to adhere to foreign trade regulations with compliance. Still confused about how to navigate the<\/span><b> DGFT AD Code for Export Units?<\/b><span style=\"font-weight: 400\"> Seek consultancy at LegalRaasta. We provide end-to-end service as your trusted partner.\u00a0<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center\"><span style=\"font-size: 14pt\"><strong><em>User Query: <a href=\"https:\/\/www.legalraasta.com\/blog\/role-of-banks-ad-code\/\" target=\"_blank\" rel=\"noopener\">Role of Banks in the AD Code Registration Process<\/a><\/em><\/strong><\/span><\/p>\n<\/blockquote>\n<h4 style=\"text-align: justify\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol style=\"text-align: justify\">\n<li><b> How can one obtain the AD code?<\/b><\/li>\n<\/ol>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\"><em><strong>Ans.<\/strong><\/em> Individuals or businesses that import and export goods for international trade<\/span> <span style=\"font-weight: 400\">are eligible for a<\/span><b>n AD bank account registration in India.\u00a0<\/b><\/p>\n<ol style=\"text-align: justify\" start=\"2\">\n<li><b> Which document is mandatory during the registration process?<\/b><\/li>\n<\/ol>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\"><em><strong>Ans.<\/strong><\/em> To fulfill the requirements for authorized dealer code registration, businesses such as export-oriented units must hold a valid IEC number.\u00a0<\/span><\/p>\n<ol style=\"text-align: justify\" start=\"3\">\n<li><b> Is a separate AD code required for each port?<\/b><\/li>\n<\/ol>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\"><strong><em>Ans.<\/em> <\/strong>Importers must apply for a new <\/span><b>AD code<\/b><span style=\"font-weight: 400\"> for each port from which they desire to ship or receive goods.\u00a0<\/span><\/p>\n<ol style=\"text-align: justify\" start=\"4\">\n<li><b> What is the timeline of the AD code?<\/b><\/li>\n<\/ol>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\"><strong><em>Ans.<\/em><\/strong> The exporters don&#8217;t need to apply for the code, as it is valid for a lifetime.<\/span><\/p>\n<ol style=\"text-align: justify\" start=\"5\">\n<li><b>Is GST registration mandatory for the AD code?<\/b><\/li>\n<\/ol>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\"><em><strong>Ans.<\/strong><\/em> Yes, to apply for the code, the businesses need to apply for <\/span><b>registration of a GST certificate.\u00a0<\/b><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Under the Foreign Trade Policy, the Government of India established the scheme &#8220;Export-Oriented Units.&#8221; In short, the core role of the establishment of EOU is to enhance the exportation in India. The development of the scheme was to support the exporters or manufacturing units by providing benefits. The businesses that are linked as Export Oriented Units [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":32669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[560],"tags":[],"class_list":["post-32668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-import-export"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AD Code Registration for Export-Oriented Units<\/title>\n<meta name=\"description\" content=\"Explore reasons to need of AD code registration for export-oriented units, how EOU links to AD Code, &amp; overview of EOU.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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