There are two most important licenses or registrations required for Import and Export in India. The first is a Directorate General of Foreign Trade-issued Import Export Code (IEC) Registration for your company (DGFT). The second is a valid Authorized Dealer (AD) Code Registration, which is required for customs clearance. In order to clear export customs at a certain port, you’ll need to generate a customs clearance code and provide it to your Customs House Agent together with the other appropriate documents. Learn all about AD Code Registration for import of Goods in India through this article.
Know all about AD Code Registration – What is AD Code?
When doing international trade using a current account, you will need a special code called an AD Code from your financial institution. The DGFT-approved format for this code is printed on a document with the bank’s letterhead. Obtaining an AD Code requires a bank to either engage in foreign currency trading or be recognised as an authorized dealer of foreign currency. This is consistent with an AD Code’s goal of tracing the origin of a foreign exchange transaction in an exporter’s current account to legitimate business activity.
The AD Code must be registered with the airport or port where the export will originate. Thus, the AD Code registration is necessary for both the inland container depot (ICD) and the port associated with the ICD if the shipment is to be sent from an ICD.
The validity of an AD Code registration is eternal. However, registering the AD Code for each port from which an exporter ships is required, regardless of whether the ports are located within the same state or in other states. Each of these ports would have a unique AD Code under these circumstances.
Learn more at: Importance of AD code for Import & Export
What are the benefits of AD Code Registration for import of Goods in India?
- Importers are able to abide by the legal requirements of obtaining AD Code Registration.
- Importers will not be able to generate shipping bills without an AD Code.
- You can deposit funds straight into the dealer’s bank account once you register an AD code.
- If you have an AD Code registered with customs, any government benefits you desire to receive, such as duty rebates and exemptions, GST (Goods and Services Tax) refunds, and so on, would be sent directly into your bank account.
- Importers can release the payment only if they have an AD Code.
- Port Registration from ICEGATE can also be done only if you have AD Code.
Document Requirement to obtain AD Code Registration for Import of Goods
- Bank’s Authorization letter in Annexure-A (original)
- Customs broker’s letter on letterhead requesting AD Code registration
- GST registration certificate
- Import-Export Code License
- PAN Card
- PAN, Aadhaar and Voter ID/Passport of the business owners
Also know: Documents required for IEC Code Registration
Can you modify the existing AD Code?
Yes, you can modify the AD Code. You will need to prepare following documents for a new AD Code Registration:
- An explanation of why the existing AD Code needs to be updated or deleted must be included in the letter.
- The bank’s contact email address for additional confirmation purposes
Summary
AD Code Registration is an extremely important document or a kind of license for importers as well as exporters. One can not do any exim business in India without AD Code.
Furthermore, If you want any other guidance relating to AD Code Registration online , please feel free to talk to our business advisors at 8881-069-069.
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