Introduction
If you run an import or export business in India, you'll need an AD Code (Authorized Dealer Code) to send goods overseas. This is a special number that has to be registered with Indian Customs. Without it, your exports could face delays. Or worse, get stuck at customs.
This is why you need to register the AD Code with the Central Board of Indirect Taxes and Customs (CBIC). This can be done through the ICEGATE portal.
In this article, we'll explain what an AD Code is and the steps you need to follow to check the registration status on ICEGATE.
What is an AD Code in export-import transactions?
An AD Code (Authorized Dealer Code) is a 14-digit number that exporters and importers in India must have. It is given by banks that are approved by the Reserve Bank of India (RBI) to handle foreign exchange.
After your bank issues the code, you must register it on the ICEGATE portal. This lets customs check and verify your trade activities.
It works as an ID number that links your bank account to your import and export transactions. It also makes sure only registered businesses can send or receive goods across borders. But remember, you can apply for an AD Code only after getting your IEC (Import Export Code) from DGFT.
The RBI has authorized select banks under the AD Category I. Here’s the AD Code list of all banks:
- State Bank of India (SBI)
- ICICI Bank
- HDFC Bank
- Kotal Mahindra Bank
- Ounjab National Bank
- IndusInd Bank
- Axis Bank
- Canara Bank
- Kotal Mahindra Bank
- Bank of Baroda
- Union Bank of India
How does an AD Code work for exporters and importers?
An AD Code is a key requirement for anyone doing export or import business in India. Once registered with customs, it becomes the link between your bank account and your trade activities. Without this code, your goods cannot pass customs.
For exporters and importers, the AD Code works in three main ways:
- Customs clearance: Your shipments won't move forward unless the AD Code is registered on ICEGATE.
- Foreign exchange tracking: The RBI uses it to check foreign exchange transactions and make sure they follow FEMA rules.
- Government benefits: Exporters get refunds and incentives like GST refunds, Duty Drawback, and RoDTEP straight into the bank account linked to their AD Code.
Benefits of AD Code check for smooth cross-border trade
Checking and registering your AD Code directly impacts how smoothly your cross-border trade runs. It links your bank account with customs and makes sure your trade activities are recorded properly. If the code is not registered, your goods can get stuck at the port. This can lead to delays or extra charges.
Key benefits of an AD Code check include:
1. Easy customs clearance
With a registered AD Code, customs can clear your goods faster. This avoids delays, storage costs, or penalties that may happen if your code is missing.
2. Quick refunds and incentives
Exporters can get government benefits like GST refunds, Duty Drawback, etc., directly into their bank account. This saves time and reduces extra paperwork.
3. Legal compliance
Customs and the RBI use the code to track foreign exchange transactions. This keeps your business within the law and builds trust with authorities.
4. Less cost and effort
With fewer delays and less paperwork, you spend less money and waste less time on manual tasks.
Step-by-step process to check AD Code registration status on ICEGATE
Checking the AD Code registration status on ICEGATE is a simple process. All you need to do is log in to ICEGATE (Indian Customs EDI Portal) and follow the steps.
Step 1: Log in to ICEGATE
Enter your user ID, password, and the CAPTCHA code to log in. If you don't have an account, create one first.
Step 2: Go to the right section
Once you log in, you'll reach your account homepage. From the menu, click on 'Financial Services', then select 'Bank Account Management'.
Step 3: Access the AD code option
In the Bank Account Management page, select your export promotion bank account from the drop-down list. Once done, click on 'Authorized Dealer Code Registration.'
Step 4: View your status
Submit the details, and the system will show your AD Code status. If it shows 'Approved,' your code is valid and active. If the status reads 'Deactivated,' it means you'll need to apply for a new AD Code.
Use cases across industries
The AD Code is used by both exporters and importers in their daily trade activities. It acts as a mandatory link between businesses, banks, and customs.
1. Exporters
Exporters need an AD Code to file shipping bills, which are required for every export. Without it, shipments may face delays or even penalties at customs.
2. Importers
For importers, an AD Code is required when making payments for imports. It ensures that foreign exchange transactions are properly recorded and authorized by the bank.
Why is it important to select the right bank for the AD Code?
Choosing the right RBI-authorized dealer bank for your AD Code is just as important as getting the code itself. You see, not every bank can issue it. Only banks approved by the RBI can handle foreign exchange transactions. As such, choosing a reliable bank makes the process easier and helps you avoid problems later.
Here's what you should look for while selecting a bank:
- RBI authorization: The bank must be approved to deal in foreign exchange.
- Experience in trade finance: A bank with a strong history in handling export and import transactions can guide you better.
- Support with registration: The bank should help you in registering your AD Code on the ICEGATE portal.
- Regular updates: A reliable bank will keep you informed about rule changes, export incentives, and compliance requirements.
Challenges in completing and verifying AD Code checks
Completing and verifying your AD Code check is not always simple. Your application may get rejected because of small mistakes like mismatched details, unclear documents, or DSC issues.
1. Mismatched details in documents
One of the main reasons an AD Code application gets rejected is mismatched details. If your company name, IEC, PAN, GSTIN, or signatory information doesn't match across documents or with ICEGATE, the application can fail. Even small things like extra spaces or missing initials can cause issues.
You can avoid this by making a checklist and comparing your IEC, PAN, GST, and AD Code letter before uploading. If there's a mismatch, correct it immediately.
2. Incorrect or unclear document uploads
Documents that are blurry, incomplete, or uploaded in the wrong format are another big reason for rejection. Sometimes businesses forget to include the AD Code letter, or they upload the wrong bank proof. Expired GST certificates or invalid PAN cards also cause issues.
To avoid this, always scan documents clearly, check expiry dates, and upload them in the required PDF format within the size limits. If using the e-Sanchit module, make sure your documents are digitally signed with a valid Class 3 DSC before linking them to your AD Code application.
3. Digital Signature Certificate (DSC) issues
Since the process is online, a valid DSC is required. Many applications fail because the DSC has expired, is not registered on ICEGATE, or belongs to someone who is not the authorized signatory. Sometimes, technical issues like missing drivers or incompatible browsers also cause errors.
Before applying, check that your Class 3 DSC is valid, properly mapped to your ICEGATE ID, and belongs to your authorized signatory. Test it on the recommended browser to avoid last-minute problems.
4. Not linking the AD Code to all ports
A very common mistake is assuming that once the AD Code is registered, it works everywhere. That's not the case. The AD Code has to be linked to each port you want to use for exports or imports. For example, if you registered it for Mumbai Air Cargo but later try to export from the Nhava Sheva Sea Port, your shipping bill will be blocked.
Always make a list of all ports, ICDs, or airports where you plan to ship and register the code for each one in advance.
5. Not checking application status
Another common issue is submitting the application and then forgetting about it. If customs raises a query and you don't respond, your application will be stuck.
Therefore, make sure to log in to ICEGATE regularly to check your application status. If there is a query, reply quickly with the required information. If nothing moves for more than a week, contact the ICEGATE helpdesk for support.
How Xflow simplifies the AD Code check for export businesses
Once your AD Code is registered, the next big step is to make sure your international payments are simple, secure, and compliant. That's where Xflow makes things easier. It helps exporters avoid delays, surprise charges, and compliance worries. Here's how:
1. RBI and FEMA-compliant transfers
Every transaction follows the rules, so you don't have to worry about compliance issues.
2. Free e-FIRA for withdrawals
For every withdrawal, Xflow automatically provides a digital Foreign Inward Remittance Advice (FIRA) through an RBI-approved bank. This is key for exporters as it proves foreign income is received legally.
3. Transparent forex rates
You get access to mid-market rates with no hidden fees. This means you know exactly how much money will reach your account.
4. Fast settlements
Receive funds in your bank account within 1 business day to maintain a steady cash flow.
Frequently asked questions
An AD (Authorized Dealer) Code is a 14-digit number given by your bank. It links your export business to your bank account and is needed to clear shipments at customs.
You can check your registered AD Code on the ICEGATE portal. Log in with your details and go to the AD Code section to see if your bank and code are updated.
To get an AD Code, you need to apply through your business bank. Submit documents like your Importer Exporter Code (IEC), GST certificate, and PAN card. Once verified, the bank will issue an AD Code letter. You must then register this code at every customs port you plan to use for exports.
No. An IFSC code is used for identifying bank branches within India. An AD Code is specifically for export businesses to process customs and international trade payments.
Your business bank, which is approved by the RBI as an Authorized Dealer, issues the AD Code.