SUMMARY
To start an import and export business in India, you must obtain two essential registrations as per government regulations: IEC (Import Export Code) Registration and AD (Authorized Dealer) Code Registration. Both are mandatory for operating legally in the import-export sector.
The AD Code is a 14-digit number issued to businesses. Its primary purpose is to ensure that all foreign currency transactions in an exporter's current account are legitimate and originate from authorized channels.
Once you obtain the AD Code at any port, it is valid for customs clearance of goods for import or export throughout India.
The AD Code Registration offers several advantages, which include:
1. It helps expand your business globally by providing access to international markets, enabling rapid growth and development.
2. The AD Code registration is a one-time process, meaning there are no ongoing returns to file. Once you receive your code, no further steps or filings are required.
3. The AD Code is valid for the lifetime of your business. You don’t need to worry about renewing it as long as your entity is operational.
4. Businesses with an AD Code may qualify for various incentives related to imports and exports, offered by agencies such as DGFT, the Export Promotion Council, Customs, and other government programs.
Why is AD Code Registration Required?
AD Code Registration is essential for several key reasons when conducting export business:
1. Exporters must have an AD Code to legally export goods from India.
2. A Shipping Bill, required for export customs clearance, can only be generated on Icegate (Indian Customs' electronic platform) if you have an AD Code registration.
3. The AD Code enables direct transfer of credit to the trader's current account.
4. Government benefits, such as duty rebates, GST refunds, and exemptions, are credited directly to your current account when you have an AD Code registered with customs.
5. It is mandatory to register the AD Code at each port from which you plan to export goods.
6. When exporting, both the IEC and AD Code are required.
7. Banks may also ask for the AD Code when receiving payments from abroad.
Here’s a simple step-by-step process for AD Code Registration:
1. Enter your business details on our website.
2. Select a package and make the payment using available online options.
3. Once you place your order, a dedicated professional will be assigned to your application.
4. The professional will prepare the necessary documents and submit the AD Code registration application.
5. Our professional will regularly follow up with the Port department to ensure your AD Code registration is processed.
6. After your AD Code is obtained, we will send you the AD Code certificate via email.
Here’s the latest update on AD Code Registration:
1. The Directorate General of Systems and Data Management (CBITC) issued an advisory on June 14, 2022, introducing new changes related to AD Code.
2. Now, the AD Code linked to a bank account only needs to be registered at one port, rather than registering it separately for each port across India.
3. The AD Code Registration process can now be done online through the ICEGATE platform.
4. Once registered at one port, the AD Code can be used for all ports, eliminating the need for separate registrations.
5. Any changes to the AD Code account details must be made at the port where the registration was originally completed.
6. Multiple AD Codes can be registered under one Import-Export Code (IEC) at different ports.
7. For existing AD Codes, the port where the last Shipping Bill was filed will be considered the port of registration.
8. You can check the port of registration information for each AD Code linked to an IEC on the ICEGATE portal.
Simplified procedure for AD Code Registration in India:
1. Write a letter to your bank’s branch manager requesting an AD Code, following the bank’s prescribed format.
2. The bank will process your request and provide the AD Code document on the bank’s letterhead, as per the DGFT format.
3. The AD Code needs to be registered with your bank account at just one port, and it will be valid for use at all customs locations across India.
4. If there are any changes to the AD Code or account details, these must be updated at the port where you initially registered, using your Import Export Code (IEC) Registration.
List of documents required for AD Code Registration:
1. The bank’s AD Code authorization letter in Annexure-A (original).
2. A letter from the exporter on company letterhead requesting or authorizing AD Code registration.
3. A letter from the customs broker on their letterhead requesting AD Code registration.
4. GST registration certificate.
5. Import-Export Code (IEC) License.
6. PAN Card.
7. Export House Certificate (if applicable).
8. Manufacturing License (if applicable).
9. PAN, Aadhaar, and Voter ID/Passport of the business owners.
Our professionals can assist in preparing all the necessary documentation for AD Code Registration. Contact us for support.
How to register for an AD Code with the help of E-StartupIndia professionals:
Step 1: Consult with our experts to check if you're eligible and understand the required documents.
Step 2: Our team will help you prepare all the necessary documents in the required format.
Step 3: We will assist you in filling out and submitting the AD Code application.
Step 4: DGFT officials will verify and process your application within a week.
Step 5: Once the verification is complete, we will send you the AD Code Certificate or document via email.
Our experienced team provides seamless and error-free AD Code Registration services online in India. Since 2012, we have successfully handled over 2000 AD Code registrations, ensuring compliance with the latest DGFT guidelines.
Our team includes Chartered Accountants, Lawyers, and Company Secretaries, all experts in export-import regulations, business compliance, taxation, and accounting in India. We offer affordable services while ensuring that your registration meets all legal requirements.
Let us help you launch your import-export business with the proper legal formalities. Our team is here to support you throughout the entire process as you grow your business.