As global e-commerce escalated rapidly and Amazon’s international platform grew strong, Indian sellers are increasingly looking into export opportunities. To access Amazon’s global marketplaces, such as Amazon.com (US), Amazon.co.uk (UK), Amazon.ca (Canada), among others, sellers are required to meet Indian regulatory requirements. The Ad Code is one such requirement to be met to receive export remittances into India.
In this article, we will discuss what the Ad Code for Amazon is, why it’s crucial for cross-border e-commerce exporters, how to register Ad Code, and a step-by-step guide to making cross-border transactions smooth.
Why is Ad Code for Amazon Important?
If you are an Indian merchant selling products abroad using Amazon Global Selling, your revenue from sales is earned in foreign exchange via Amazon’s payment processors. Remittances find their way to your Indian bank account in the form of export proceeds.
In the absence of an Ad Code for Amazon, customs authorities cannot authenticate export transactions from you, and this may lead to:
- Delay or rejection in shipping
- Difficulty in obtaining Export Shipping Bills
- Troubles with tracing foreign currency remittances
- Non-compliance with RBI and DGFT rules
Therefore, it is a requirement to have an Ad Code registered at your shipping port to facilitate adherence and seamless business operation.
Who Requires an Ad Code?
The following types of sellers require registration of an Ad Code:
- Amazon Global Sellers based in India
- Flipkart/Walmart Global Sellers
- Shopify or Etsy sellers shipping internationally
- Classic exporters exporting goods overseas
- Freelancers and companies receiving foreign payments through PayPal or wire transfers
How to Obtain Ad Code for Amazon Sellers
Following is a step-by-step guide on how Indian Amazon sellers can get and register an Ad Code:
Step 1: Open a Current Account with a Bank Authorized for Foreign Exchange
To begin the Ad Code registration process, sellers must hold a current account in a bank that is authorized to deal in foreign exchange (Authorized Dealer Category-I Banks like SBI, ICICI, HDFC, Axis Bank, etc.).
Step 2: Request the AD Code from Your Bank
Write a formal request to your bank manager seeking the issuance of Ad Code. You’ll need to provide:
- IEC (Importer Exporter Code) copy
- PAN card of the business
- GST registration
- Business address proof
- Exporter’s bank account details
The bank will provide a letter on its official letterhead with the 14-digit Ad Code.
Step 3: Register the Ad Code with Customs (ICEGATE Portal)
After you get your Ad Code, you need to register it with customs at the port or airport where your shipment will be leaving. Here’s how:
- Go to the ICEGATE portal
- Log in using your credentials
- Submit the request for Ad Code registration
- Upload the documents required:
- Copy of Ad Code letter from the bank
- IEC certificate
- GST certificate
- Company PAN
- Authorization letter, if required
- Submit the approval request
After approval, your Ad Code will be registered for the specific port.
Step 4: Associate Ad Code with Your Amazon Seller Account (Optional but Useful)
Though Amazon does not mandate you to provide the Ad Code directly in Seller Central, having this code ready helps you ensure hassle-free documentation for customs clearance, reconciliation of GST, and while applying for export advantages under MEIS/RODTEP.
Advantages of Ad Code Registration
- Ease in Customs Clearance: Ad Code is necessary for generating export shipping bills through ICEGATE.
- RBI Compliance: Assists in fulfilling RBI requirements with FEMA regulations pertaining to inward remittances.
- Foreign Remittance Tracking: Facilitates hassle-free tracking of Amazon or other overseas platform payments.
- Eligibility for Export Incentives: Facilitates claiming duty refund, GST exemptions, and initiatives such as RODTEP.
- Proof of Exports: Mandatory for documentation in the event of income tax scrutiny or audit of accounts.
Challenges Without Ad Code
Non-registration of the Ad Code can lead to:
- Blocked shipments
- Frozen foreign transactions
- Legal non-compliance
- Ineligibility for government export schemes
- Delays in GST refund procedures
Therefore, The Ad Code registration in advance is essential for smooth exports.
Amazon Best Practices for Global Sellers
- Ship always from registered ports where your Ad Code is effective
- Keep IEC, GST, and Amazon Seller details consistent
- Verify that Ad Code is registered for every port used
- Keep your export documents updated
- Track payments from Amazon through the Foreign Inward Remittance Certificate (FIRC)
FAQs
Q1. What is Amazon’s Ad Code and why do I need it?
The Ad Code is a 14-digit number released by your bank that sanctions the remittance of foreign income. It’s necessary to create shipping bills and monitor exports, which is compulsory for e-commerce sellers on Amazon Global Selling.
Q2. How can I register my Ad Code for e-commerce exports?
You have to get your Ad Code from your bank and register it with customs at the ICEGATE portal. You will have to upload supporting documents such as IEC, bank letter, GST certificate, and await the approval of the customs office.
Q3. Can I sell on Amazon without an Ad Code?
You can list and sell products on Amazon Global Selling, but shipping internationally from India or receiving remittances legally without registering an Ad Code with customs is not possible.
Q4. Do I need to register an Ad Code at each shipping port I export from?
Yes, you must register Ad Code separately at each port or airport you intend to export from. If you export from several ports, each must be registered separately.
Q5. How long does it take to register Ad Code?
The process typically takes 3 to 7 working days, subject to the port and correctness of your documents. Make sure all submissions are accurate to prevent delays.
Conclusion:
If you’re looking to expand your business internationally via Amazon, registering the Ad Code for Amazon is one of the most important steps in your export process. It allows you to receive foreign currency legally, clears customs procedures, and makes you financially compliant. With the increasing ease of doing business in India, Ad Code registration has become a hassle-free digital process that empowers small businesses and entrepreneurs to go global with their brands.
Ready to make your e-commerce company go global? Discover expert tips, step-by-step tutorials, and compliance advice on Estartup Blogs. From Ad Code registration to Amazon global selling techniques, we have everything you need to thrive. Begin scaling your company today with Estartup Blogs!
Moreover, If you want any other guidance relating to registering AD Code or IEC , please feel free to talk to our business advisors at 8881-069-069.
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