AD Code Registration (Bank Authorised Dealer)

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.

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.

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.

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.

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.

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.

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.

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.

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.