What is an AD code?
An AD code (Authorised Dealer code) is a unique 14-digit number issued by a bank that the Reserve Bank of India (RBI) has authorised to handle foreign exchange. It links your export transactions to a specific bank account, so that every payment tied to a shipment moves through a legitimate, RBI-supervised banking channel.
You can only get an AD code after you hold an IEC (Import Export Code), the registration issued by the Directorate General of Foreign Trade that every Indian exporter needs. The AD code sits one layer above the IEC: the IEC identifies you as an exporter, and the AD code connects that identity to the bank account your export money flows through.
In plain terms, the AD code is what lets customs trust that your shipment and its payment belong to a real, banked, compliant exporter.
Why does customs need an AD code?
Customs needs an AD code because it is the link between your shipment and a bank account cleared to receive foreign payments. Without that link, the system will not generate your shipping bill, and the shipping bill is the core document that authorises goods to leave the country.
The requirement does three things at once:
- It generates your shipping bill. Customs ties the shipment to your AD-linked account and produces the shipping bill, the primary export document. No AD code, no shipping bill, no export.
- It keeps your foreign exchange compliant. Because the code routes every export payment through an RBI-authorised bank, the money movement stays within RBI and FEMA (the Foreign Exchange Management Act) rules. That is what keeps your inward payments clean and traceable.
- It unlocks export incentives. An AD code is part of the paperwork trail needed to claim government export benefits such as duty drawbacks and rebates.
Think of it as the difference between a parcel with a return address and one without. Customs will only move the one it can trace back to a compliant account.
What are the benefits of registering your AD code?
Registering your AD code turns a legal requirement into an operational advantage. The main benefits:
- Faster customs clearance. A registered AD code means customs can process your shipment without chasing missing banking details, so goods move in and out with less friction and fewer missed deadlines.
- Compliance you can prove. The code keeps your export transactions aligned with RBI and customs rules, which lowers the risk of penalties and held shipments.
- Access to export incentives. With the AD code in place, you can pursue duty drawbacks, tax exemptions, and other schemes that improve your margins.
- Timely release of export payments and ICEGATE access. Banks can only process your international receipts through authorised channels once the AD code is registered, and ICEGATE registration itself depends on it.
The through-line: getting paid quickly and clearing customs quickly are the same problem, and the AD code sits at the centre of both.
What documents do you need for AD code registration?
You need a defined set of documents for AD code registration, most of them issued or attested by your bank. Gather these before you start, because a missing attestation is the most common reason a registration stalls.
| Document | What it is |
|---|
| AD code letter | Issued by your bank on its letterhead, this carries the 14-digit AD code you register with customs at each port. |
| Bank certificate | Confirms you hold a valid current account with the bank, in the format under Customs Public Notice No. 93/2020. |
| Authorised signature and bank seal | The signature of the bank official authorised to issue the AD code, with the bank's seal. |
| Company PAN card | A copy, used to verify the exporting entity's identity. |
| Import Export Code (IEC) | Issued by the DGFT; mandatory for every exporter. |
| GSTIN registration certificate | Confirms the exporter is registered for GST. |
| Cancelled cheque | From the current account tied to the AD code. |
| Class 3 Digital Signature Certificate (DSC) | Required to sign documents on the customs portal. |
| Signatory ID | PAN, Aadhaar, and Voter ID or Passport of the authorised signatory, plus the director, proprietor, or partner. |
| Export House Certificate | Only if applicable to your business. |
Keep the PAN, GST, and IEC copies sealed and signed where your bank asks for it, and have your bank statement or previous-year balance sheet and last three years of income tax returns ready, since the ICEGATE upload step asks for them.
How do you register an AD code with your bank?
You register an AD code with your bank in four steps, and it starts with the right kind of account. The AD code comes from the bank first; ICEGATE registration comes after.
- Open a current account with an authorised dealer bank. This must be a bank cleared to handle foreign exchange. You cannot get an AD code without it.
- Gather the required documents. Use the checklist above: AD code letter, bank certificate, sealed and signed PAN, GST, and IEC copies, cancelled cheque, Class 3 DSC, signatory ID, and the Export House Certificate if it applies.
- Submit a written application. Write a formal request to your bank in the format it provides, stating that you need the AD code for your export activity.
- Let the bank verify and issue. The bank checks your details and, once satisfied, issues the AD code on its letterhead in the DGFT format.
Once that letter is in hand, you move to the customs portal.
How do you register an AD code on the ICEGATE portal?
You register the AD code on ICEGATE (the Indian Customs Electronic Data Interchange Gateway), the official customs portal run under the Central Board of Indirect Taxes and Customs (CBIC). This is the step that actually links your code to a specific port. Here is the sequence:
- Log in to ICEGATE. Visit the ICEGATE portal and sign in with your existing credentials.
- Open Bank Account Management. Find it in the left panel.
- Choose Authorised Dealer Code Registration. On the Export Promotion Bank Account Management page, select this option.
- Upload documents via e-Sanchit. Select e-Sanchit in the left panel to reach the upload page. Every document must be digitally signed and in the prescribed format. You will upload the AD code authorisation letter, the exporter's request letter, the customs broker's letter (if used), and copies of your GST registration, IEC, PAN, last three years of income tax returns, and your bank statement or previous-year balance sheet. Add the Export House Certificate or manufacturing licence if they apply, plus the ID and IT declarations of the signatory and export partner. On completion, the portal generates an Image Reference Number (IRN) and Document Reference Number (DRN).
- Add your bank account details. Return to the Authorised Dealer Code Registration page, click "add new account," and enter your IRN, bank details, and port location code.
- Submit and verify the OTP. If your inputs are valid, a six-digit OTP arrives on your registered email and mobile. Enter it to complete the request.
- Wait for the customs review. Your request goes to customs for approval. Track it from the Authorised Dealer Code Registration dashboard using the status icon.
- View your registered AD code. Once approved, the code and bank details show on your dashboard. Repeat the process to add more AD codes, accounts, or ports as your export footprint grows.
That last point matters more than it looks: AD code registration is per port. If you ship from a new port next quarter, you register there too.
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The payment side of the same problem
An AD code clears your goods. It does not, on its own, make your international payments arrive quickly or in full. Once your shipment is out, the next friction point is collection: currency conversion, forex markup, reconciliation, and the FIRA (Foreign Inward Remittance Advice) you need as proof of payment.
This is where a cross-border payments partner earns its place alongside your AD code. PayGlocal is RBI-authorised as a Payment Aggregator Cross Border Inward and Outward (PA-CB-I&O) and as an Online Payment Aggregator (PA-O), and is part of the ICICI Bank Group. It gives exporters multi-currency accounts, a checkout tuned for a high payment success rate, settlement in INR to your Indian bank account, and FIRA issued automatically after settlement. Just as an AD code keeps customs from stalling your shipment, a strong payment setup keeps a weak checkout from stalling your revenue.
