If you are
an exporter in India, you know the two most important permits you need to
export your goods. The first is a business identification number issued by the
Import Export Code (IEC), issued by the Directorate General of Foreign Trade
(DGFT). and another is an authorized dealer code (AD code), without it cannot
complete the customs clearance of your goods. In
this article we have discussed about what is AD code and how to find AD code of
Bank.
In this complete
article on the AD code, we will touch on its importance of export business in
India. To find out:
- What is an AD code?
- Why does an exporter need an AD code?
- How do you apply for an AD code?
- How do you register your AD code with Customs?
- Can you edit an AD code?
What is an AD Code (Authorized Dealer)?
An AD code
is a 14-digit numeric code that you can get from the bank with which you have
your current account to run your import-export business. The code is printed in
a document with the bank's letterhead in the format prescribed by DGFT.
A bank must
be an authorized dealer of foreign currency in order to be able to issue an ED
code. This is in line with the purpose behind the AD code, which ensures that
foreign currency transactions in the current account of the exporter come from the
legal trade of foreign currency.
Exporters
need to register their ED code with the port or airport from where they want to
ship their goods abroad. If the shipment is sent from an Internal Container
Depot (ICD), then the AD code registration with the attached port is required
for that facility. For
example, if you ship from Ahmadabad’s ICD Khodiyar, you will have to register
there and transport goods through the two ports at Mundra Port in Gujarat
and/or Nhava Sheva in Maharashtra.
There is a lifelong
validation of an AD code registration However, if an exporter ship from more
than one port, in the same state or in different states; they must register the
AD code for these ports. In that case, the AD code will be different for each
of these ports.
#Why do exporters need AD codes and How to find AD code of Bank?
The AD code
is absolutely necessary for the export process because:
The Bill of
Lading is one of the three essential documents required for export customs
clearance. And if you don't register your AD code, you won't be able to
generate shipping invoices on Ice gate, India's customs electronic data
exchange platform. When you register your AD code with Customs, all government
benefits you enjoy, including customs discounts and waivers, and refunds on
goods and services tax (GST), will be deposited directly into your checking
account.
#Know the process of application how do I apply for the AD code?
You can
request an AD code by contacting the bank you currently have an account with.
The application must be in the following format to the Bank:
To,
Branch Manager,
(Bank Name),
(Branch Name),
Subject:
AD Code Request
Dear Sir / Madam,
I Owner of Current
Account (Number) at the (Branch Name) of (Bank Name) wants to apply for an
Authorized Distributor Code (AD) (specify the time frame) because you are in
the process of exporting a shipment abroad. In order to ship the product, you
must register the AD code with customs at (port name).
Issue a
letter containing the AD code to the Commissioner of Customs at (named port). I
also request that the letter be filled out in the format established by the
customs attached hereto (shown in the format below). Import and export codes within
(including IEC numbers).
We appreciate your urgent response to this
request.
Thank you.
(Name/Signature)
After
applying at the bank, an AD code will be issued. The bank authorization letter
with AD code must be in Appendix A in the following format:
#How do I register a promo code with customs?
After
receiving the AD code from the bank authorization letter, the next step is to
register with customs. This process is completely digital, contactless, and
must be completed on the Indian Customs website, Ice gate. The registration
process is as follows.
1- Log in to Ice gate Portal
2- In the left pane, click Manage Bank Accounts.
3- Select the "Register Authorized Dealer Code" option
to enable export on the Manage Bank Account page that opens.
4- Click on e-Sanchit in the left pane. This leads to a page
where you can save the document as an electronic file. Upload the required
documents in the prescribed format with a digital signature as indicated on the
page.
You must upload the following
documents:
- Letter from Appendix A with Bank Authorization
- AD code (original)
- AD Code
- Letter from exporter requesting/licensed registration Letter from customs broker requesting AD Code registration
- GST registration (copy)
- Import/export code (copy)
- Permanent account number or PAN (copy)
- Income declaration for the last 3 years (copy)
- Last year's bankbook balance/balance (copy)
- Certificate of exporting country (copy if any)
- Production license (copy if available)
- PAN, Aadhaar, Voter ID/Passport and Export Partner IT Declaration
- PAN, Aadhaar and Voter ID / Signer Passport.
5- When a document is successfully uploaded, an Image Reference
Number (IRN) and Document Reference Number (DRN) are generated. 6- If you encounter
recurring errors while uploading documents, you can email us at
saksham.seva@icegate.gov.in.
7- Now go back to the
Export Facilitated Bank Account Management page and click Add New Account in
the Authorized Distributor Code Registration panel.
8- Enter the required
bank details, IRN and port location code (eg Nhava Sheva code - INNSA), then
click Submit.
9- If the data entered is
valid, a 6-digit One Time Password (OTP) will be sent to your email address and
mobile phone number and you will be redirected to the OTP page.
10- Check your OTP. This completes your registration request. Now
the request goes to customs and gets approved/rejected after passing the
documents.
11- Exporters can track
the status of their request in the Authorized Distributor Code registration
panel by clicking the status icon.
12- If your request is approved, you can view your registered AD
code and bank details on the same dashboard. You can still add new AD codes,
accounts and locations by following the same procedure.
Tags
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