How to Get Bank AD Code for Running Export Business?

As an exporter in India, you need to be aware of two important permits for sending products or services out of the country. The first is an Import Export Code (IEC), a business identification number issued by the Directorate General of Foreign Trade (DGFT). The second is an Authorized Dealer Code (AD Code), which you need for customs clearance of your goods. In this article, we have discussed what an AD code is and the process of obtaining a bank AD code for successfully running the export business.

What is an AD code?

The bank AD Code is a 14-digit code that's given by the bank where the exporter maintains a business current account. This code, which is printed on the bank's letterhead, can be obtained by the exporter after registering for an Import Export Code (IEC) with the Director General of Foreign Trade (DGFT). It is valid for the lifetime of the business. An AD Code exists to ensure that all foreign currency transactions in an exporter's current account are from legal trade. This helps to protect businesses and ensure that they are operating within the law.

Exporters need to register their bank AD Code with the port or airport from where they're shipping their goods abroad. If the shipment is going to be dispatched from an inland container depot (ICD), they'll need to register at that facility as well as the port attached to it. For example, if someone is shipping from ICD Khodiyar in Ahmedabad, they will need to register there, as well as at Mundra port in Gujarat or Nhava Sheva in Maharashtra, because the cargo will be routed through either of these ports.

Process of Obtaining Bank AD code

Follow the steps below to obtain a bank AD code: -

Write a letter to the branch manager in the format prescribed by the bank requesting the bank AD code.
After processing your application, they will get you the AD code document with its letterhead in the format as prescribed by the DGFT.
Now, you can register your AD code at the port from where your consignment will be shipped by submitting your documents to the Customs House Agents (CHA).
If you want to clear customs and export your products from more than one port, you need to register your AD code at each of those ports.

In addition, the following documents are required while registering your bank AD code with CHA: -

AD code on bank letterhead
Copy of IEC
Copy of PAN card
GST registration certificate

Summing Up!

Expanding your business to include selling internationally can be a great growth strategy. Thanks to eCommerce export programs like Amazon Global Selling, it's easier than ever to get started. You can launch your export business from anywhere in the world, at any time. Just sign in, list the products and enjoy selling globally today.

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