Only 1 AD Code Registration for all Ports

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DGFT has issued the latest notification concerning the huge demand from traders regarding AD Code Registration. The government also claims this update will be beneficial for traders, and the government also claims it will facilitate trade and streamline the process. The latest update from DGFT is regarding only 1 AD Code Registration for all ports. This article will help you understand the latest update from DGFT for AD Code Registration.

What is AD Code Registration?

A 14-digit number is given out as an AD (Authorized Dealer) Code.

According to government laws, you need two registrations before launching an import and export business in India. IEC registration is one, while AD code registration is another.

tasks_2021_2xThe Importance of AD Code Registration 

Customs clearance of your products, whether you are importing or exporting, is necessary and is done through AD Code Registration.

tasks_2021_2xThe Objective of AD Code Registration

The AD Code’s objective is to verify if foreign exchange transactions in an exporter’s current account originate from a legitimate route or not.

The Former Process of Custom Clearance 

For customs clearance of goods imported or exported, a unique AD Code registration is needed for each port.

When an IEC filed a document (such as a shipping bill) at any Customs EDI port, registering an AD Code and its associated bank account was a one-time transaction.

Every port where papers were lodged needed the registration of an AD Code. There could be several AD codes connected to an IEC at different ports.

The registration request might be submitted online using an ICEGATE ID or in person at the Customs House.

Wherever the IEC requested the new AD Code Registration, the same had to be approved by an officer at each unique port.

Latest Updates: Only 1 AD Code Registration for all ports

The AD code and its linked bank account must now be registered in the system at just one port before becoming accessible at all customs sites. Any registration (or update) of a new AD code at any port must be made through an online request at ICEGATE.

In ICES, the “CLK” role has blocked the ability to add or modify the AD code and account against an IEC. As with the current process, the officer serving in that port’s CLK position would approve the application.

An AD code can be used on any port after it has been registered against an IEC there. No further registration is necessary at other ports.

Additionally, any modification to the specific AD code account information must be made at the port of registration designated by the IEC when the registration application was submitted. Additionally, a registered IEC may have several AD codes and related accounts. In this aspect, nothing has changed.

All multiple AD codes must be registered in the system at one of the ports as stated above, as instructed. As a result, numerous ports of registration for various AD codes are possible for an IEC.

Updates for Existing AD Code Registration

Additionally, for any existing AD code(s) and associated accounts registered for an IEC, the Customs port where the most recent Shipping Bill containing a certain AD code was lodged has been considered the port of registration for that AD code in the System. The ICEGATE login ID’s Bank Account section will provide the port of registration information for each registered AD code against an IEC Code Registration.

Take a call from Expert

Moreover, If you want any other guidance relating to AD Code Registration, please feel free to talk to our business advisors at 8881-069-069.

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