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AD Code Registration | Fees, Documents, Process
An Authorized Dealer Code (AD Code) is a 14-digit number issued by a bank for foreign currency transactions. Import Export Code (IEC) and AD Code registrations are the two most important registrations that every exporting business must complete. AD Code registration is essential for the customs clearance of goods from India.
AD Code registration on the ICEGATE portal must be done for each port separately. The purpose of registration is to ensure that the foreign currency transactions in the exporter’s current bank account are from a legitimate source.
Why is AD Code Registration Required?
AD Code stands for Authorized Dealer Code, which is a unique identification number allotted to businesses by authorized dealer banks in India. It is a 14-digit code that facilitates foreign exchange transactions for importers and exporters. Every Indian business undertaking cross-border trade must obtain an AD Code before initiating any foreign currency transaction.
- Transfer of credit directly to the trader’s account.
- Submission of shipping bill for custom house clearance.
- Important for claiming incentives & refunds.
- Importer’s requirement for releasing payment.
- Port registration for export can be done through AD Code ICEGATE online platform.
Documents Required for AD Code Registration
Once the bank has issued an AD Code it has to be registered with the customs on the ICEGATE portal. Following documents needs to be ensured before making an application.
- AD Code letter on banker’s letterhead
- GST Registration Certificate
- Import Export Code
- PAN Card
- Request Letter or Authorisation letter for AD Code on the letterhead
- PAN, Aadhaar Card and Voter ID/Passport of the owners/Partner/Director’s
- MOA, AOA & COI in case of Company
- Partnership Deed in case of Partnership Firm
AD Code Registration Process
Registering an AD code can be a complex and time-consuming process. We suggest that you hire an expert who can complete the entire procedure without any problems.
- Documentation
- Application to ICEGATE Portal using Organization based Class 3 DSC
- Regular follow up with the concerned Port for processing of AD Code registration.
- Approval of AD Code from Customs
AD Code Registration Fees
Application Fee for AD Code registration is Rs. 2500– (It is a one time fee which has to be borne by the exporter). There is no government fee for AD Code registration.
How to register AD Code?
Submission and Verification
The applicant needs to approach their designated bank with all the necessary documents. The bank will verify the provided information and initiate the AD Code registration process.
Approval and Issuance
Upon successful verification and compliance with the RBI guidelines, the bank will issue the unique AD Code to the applicant. It is essential to ensure that the code is error-free, as any mistakes may lead to transaction delays or penalties.
Benefits of AD Code Registration
Streamlined Foreign Transactions
The AD Code simplifies the process of initiating and receiving international payments, making foreign transactions more efficient and hassle-free.
Access to Export Incentives
Having an AD Code enables businesses to access various export incentives and benefits offered by the government, promoting export activities.
Enhanced Credibility
Entities with an AD Code are perceived as credible and trustworthy by international partners and financial institutions, facilitating better trade relationships.
Conclusion
AD Code registration in India is a critical requirement for businesses involved in foreign trade. It streamlines import and export transactions, ensures compliance with RBI guidelines, and opens up opportunities for export incentives. It is essential for entities to understand the significance of AD Code and follow the necessary steps to obtain and maintain it.
FAQs
An AD Code is a unique 14-digit alphanumeric code issued by the RBI to entities engaged in foreign trade, enabling them to conduct cross-border transactions.
Any business or individual involved in import or export activities is required to obtain an AD Code.
The AD Code is typically valid for the lifetime of the business entity. However, it may need renewal or modification in case of changes or errors.
Yes, the AD Code can be modified or renewed through the designated bank in case of changes or errors.
Yes, non-compliance with RBI guidelines may lead to penalties, fines, or suspension of AD Code privileges.