StartupGrants India

AD Code Registration (Bank Authorised Dealer)

Mandatory bank code registration for customs clearance and export proceeds repatriation

Validity: Until cancelled or updated

What is AD Code Registration (Bank Authorised Dealer)?

Get your 14-digit AD Code registered with customs at every port you ship from — mandatory before ICEGATE will accept your shipping bill.

The Authorised Dealer Code, universally referred to as the AD Code, is a 14-digit numeric identifier issued by an Authorised Dealer bank to an exporter in respect of a specific export bank account. This code is a mandatory requirement under the Foreign Exchange Management Act, 1999, and the regulations issued thereunder by the Reserve Bank of India. Its primary purpose is to create a direct linkage between an export shipment and the specific bank account to which the foreign exchange proceeds of that shipment must be repatriated, enabling the RBI and DGFT to monitor India's export earnings and ensure compliance with the obligation to realise and repatriate export proceeds within the prescribed timeframe. The AD Code system is administered jointly by the customs authorities under the Central Board of Indirect Taxes and Customs and the banking system under RBI oversight. When an exporter or their Customs House Agent files a shipping bill on the ICEGATE portal, the AD Code field is mandatory. The customs system validates the AD Code against the registered bank database. If the AD Code is missing, incorrect, or not registered at that specific port of export, the shipping bill cannot be filed and the cargo cannot be cleared for export. This makes AD Code registration a non-negotiable prerequisite for every exporter, regardless of the size of the shipment or the export value. To obtain an AD Code, the exporter must approach the bank branch that holds the current account designated for receiving export proceeds. The branch issues an AD Code letter on the bank's official letterhead, typically addressed to the Principal Commissioner of Customs at the relevant port. This letter contains the bank's Authorised Dealer licence number, the branch IFSC code, the account number, and the exporter's details including IEC. The exporter then submits this letter at the customs port for registration. Most major Indian ports and inland container depots manage AD Code registration through the ICEGATE portal, where the CHA or the exporter can upload the letter and complete registration online. A critical but often overlooked aspect of AD Code management is port-specific registration. An AD Code letter from the bank is valid only when registered at each specific port or inland customs station from which the exporter intends to ship. If an exporter ships from Chennai but later decides to route a shipment through Mumbai or Nhava Sheva, the AD Code must be separately registered at that new port. Exporters who expand their shipping routes frequently encounter delays when they discover mid-shipment that the AD Code is not registered at the new port. Another common compliance issue relates to changes in the exporter's banking arrangements. If an exporter changes their bank or opens a new current account for export proceeds, the AD Code for the old account remains registered at customs but cannot be used for the new account. A fresh AD Code letter from the new bank must be obtained and registered. Failure to update the AD Code at customs leads to mismatches in Foreign Exchange Repatriation certificates and can trigger scrutiny under FEMA. The Reserve Bank of India's Master Direction on Export of Goods and Services specifies that export proceeds must be realised and repatriated within nine months from the date of shipment for goods and within fifteen months for software and services. The AD Code creates the traceable link through which RBI tracks this compliance. Exporters with an AD Code that is not updated or correctly registered may find their bank unwilling to issue Export Data Processing and Monitoring System confirmations, which are required for GST refund claims on exports. Expert assistance in AD Code registration ensures that the bank letter is correctly formatted, that the submission to customs follows the port-specific procedure, that multi-port registrations are tracked and completed before shipments are planned, and that the AD Code is maintained in an updated state as the exporter's banking and shipping arrangements evolve.

Who Needs AD Code Registration (Bank Authorised Dealer)?

Every Indian exporter shipping physical goods or software from any Indian port or inland customs station must have an AD Code registered at that port. It is equally essential for companies that regularly ship from multiple locations and for businesses that have recently changed their export bank account or bank branch, as the AD Code must reflect the current account details.

What's Included

  • Mandatory clearance for filing shipping bills on ICEGATE customs portal
  • Links export shipments to the correct bank account for foreign exchange repatriation
  • Enables GST refund processing through correct EDPMS linkage
  • Required for FEMA compliance and RBI export proceeds monitoring
  • Multi-port registration ensures flexibility to ship from any Indian customs point
  • Prevents shipment delays and demurrage at port due to documentation gaps
  • Facilitates seamless pre-shipment and post-shipment credit processing by the bank

⚠️ Penalty for Non-Compliance

Failure to have a valid AD Code registered at the port of export prevents customs from processing the shipping bill, causing shipment delays, potential demurrage charges, and inability to meet delivery commitments to overseas buyers. Unrealised export proceeds due to incorrect AD Code linkage can result in FEMA contraventions attracting penalties up to three times the amount involved under Section 13 of the Foreign Exchange Management Act, 1999.

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How It Works

  1. 1

    Identify the Correct Bank Branch

    Confirm the specific branch of your Authorised Dealer bank where your export current account is held. The AD Code letter must be issued by this exact branch, referencing the branch's IFSC code and Authorised Dealer licence number.

  2. 2

    Request AD Code Letter from Bank

    Submit a written request to the bank branch for an AD Code letter. Provide supporting documents including IEC copy, GST certificate, PAN card, and company incorporation proof. The bank typically issues the letter within two to four working days.

  3. 3

    Obtain Port-Specific Submission Details

    Determine the port or inland customs station from which you intend to export. Identify whether the port accepts AD Code registration online through ICEGATE or requires a physical submission to the customs house. Each port has specific procedures.

  4. 4

    Submit AD Code Letter at Customs

    Submit the bank-issued AD Code letter at the relevant customs port, either through the ICEGATE portal or physically at the customs house. Include all supporting documents as required by the port. Obtain an acknowledgement of submission.

  5. 5

    Receive AD Code Registration Confirmation

    Customs authorities process the submission and register the AD Code in the ICEGATE system. Once registered, the AD Code becomes active and can be used when filing shipping bills. Confirm activation before the first shipment.

  6. 6

    Register at Additional Ports if Required

    If exporting from multiple ports or inland container depots, repeat the submission process at each location using the same or updated AD Code letter from the bank. Maintain a record of all ports at which the AD Code is registered.

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Documents Required

Items marked Required are mandatory; others are situational.

Bank Documents

  • AD Code letter issued by the Authorised Dealer bank branch on bank letterheadRequired
  • Cancelled cheque or bank account statement of the export accountRequired

Company Documents

  • Import Export Code (IEC) certificateRequired
  • GST registration certificateRequired
  • PAN card of the companyRequired
  • Certificate of Incorporation or equivalentRequired

Port Submission

  • Authorisation letter for CHA if filing through a customs agent
  • Covering letter addressed to the Principal Commissioner of Customs at the relevant portRequired
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Fees & Pricing

Government Fees

AD Code registration at customs

Customs does not charge a fee for AD Code registration. Some ports may charge a nominal handling fee — verify with the specific customs house.

0

Professional Fees

Bank letter coordination, customs submission, and multi-port registration

Quoted on review of your specific case

Varies

* Government fees may vary. GST applicable on professional fees. Final pricing confirmed after review.

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Frequently Asked Questions

What exactly is an AD Code and why is it required?

An AD Code is a 14-digit Authorised Dealer Code issued by an exporter's bank branch to identify the specific current account to which export proceeds must be credited. It is mandatory under FEMA 1999 and the RBI's Master Direction on Export of Goods and Services. Customs authorities require it when processing shipping bills on ICEGATE. Without a registered AD Code at the relevant port, the shipping bill cannot be filed and the cargo cannot depart from India legally.

Who issues the AD Code — the RBI or the bank?

The AD Code is issued by the Authorised Dealer bank branch, not by the RBI directly. Authorised Dealer banks are those licensed by the RBI under the Foreign Exchange Management Act to deal in foreign exchange. The bank assigns its own branch-specific code and issues a letter to the exporter, which is then submitted at the customs port for registration. The RBI establishes the regulatory framework but the bank executes the issuance.

Is AD Code registration done once or at every port separately?

AD Code registration is port-specific. The same AD Code letter from the bank must be registered separately at every port, airport, or inland container depot from which the exporter plans to ship. If an exporter ships from Mundra and later routes a container through Nhava Sheva, a fresh registration at Nhava Sheva customs is required even though the AD Code number from the bank remains the same. This is one of the most common sources of last-minute shipment delays.

What happens if an exporter changes their bank or export account?

If the exporter opens a new current account at a different bank, or even at a different branch of the same bank, a new AD Code letter must be obtained from the new branch and registered at all relevant ports. The old AD Code remains in the ICEGATE system but is linked to the old account. Using the old AD Code for shipments credited to a new account creates FEMA mismatches and prevents correct EDPMS tagging, which in turn blocks GST refund processing and ECGC claims.

How long does it take to register an AD Code at customs?

Once the AD Code letter is received from the bank, customs registration typically takes between three and seven working days. Ports that accept online submission through ICEGATE may process registrations faster. Physical submissions at some ports may take longer depending on the customs house workload. Urgent shipments should not be planned without first confirming that the AD Code is active in the ICEGATE system, as the field is mandatory and cannot be bypassed.

Can a CHA register the AD Code on behalf of the exporter?

Yes. A licensed Customs House Agent can file the AD Code registration at the customs port on behalf of the exporter, provided the exporter furnishes an authorisation letter and the original or certified copy of the bank-issued AD Code letter. The CHA's role is limited to submission and follow-up; the bank must issue the letter directly to the exporter and address it to the customs authority. The exporter remains responsible for ensuring that the AD Code is correctly maintained.

What is the connection between AD Code and GST refund on exports?

Exports of goods and services may carry either a zero-rated status with upfront GST exemption or a refund of input tax credits. For GST refund processing, the GST portal cross-verifies shipping bill data against the EDPMS records maintained by the bank. The AD Code creates the linkage between the shipping bill on ICEGATE and the corresponding export proceeds entry in the bank's EDPMS. If the AD Code is incorrect or unregistered, the EDPMS entry cannot be matched to the shipping bill, and the GST refund application remains stuck or is rejected.

Does the AD Code have an expiry date?

The AD Code itself does not expire, but it ceases to be valid if the underlying bank account is closed or the branch's Authorised Dealer status changes. Additionally, if the exporter's IEC is surrendered or cancelled, the AD Code becomes redundant. Exporters should inform their bank and the relevant customs ports of any changes to their banking arrangements. There is no periodic renewal required as long as the exporter's IEC and the underlying bank account remain active and in good standing.

Can an exporter have multiple AD Codes for different bank accounts?

Yes. An exporter may maintain multiple current accounts at different banks or branches and obtain a separate AD Code letter for each. Each AD Code corresponds to one specific bank account. When filing a shipping bill, the exporter selects the AD Code corresponding to the account into which the proceeds for that particular shipment will be received. Having multiple AD Codes is common among larger exporters who route different product lines or buyer relationships through separate accounts for accounting and compliance clarity.

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AD Code Registration (Bank Authorised Dealer)

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