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Understanding the AD (Authorised Dealer) code is important for any business involved in international trade. This guide explains what the AD code is, why it is needed, and how to apply for it. You will learn how the AD code helps with customs clearance, ensures your business follows government rules, tracks foreign currency transactions, and makes import-export processes easier and more transparent.
What is an AD code?
An AD (Authorized Dealer) code is a 14-digit number given by a bank that the Reserve Bank of India (RBI) has approved to deal in foreign exchange. It links the business's bank account with its import and export transactions and helps Customs and banks track export proceeds. The code must be registered on the ICEGATE portal of Indian Customs. It is required for filing a shipping bill and for customs clearance of international shipments.
AD code full form: authorised dealer code explained word by word
The full form of AD code is Authorised Dealer code. Each word has a meaning in foreign trade.
| Word | Meaning |
|---|---|
| Authorised | Approved by the Reserve Bank of India (RBI) to deal in foreign exchange. |
| Dealer | A bank that handles foreign exchange transactions, such as export proceeds and import payments. |
| Code | A 14-digit number that the bank gives to the exporter or importer. It is linked to the business's bank account. |
Only a bank that is an authorised dealer in foreign exchange can issue the code. The code is then registered with Indian Customs on the ICEGATE portal.
Features of an AD code
-
- Bank issuance: The AD code is issued by an authorised bank upon request by the exporter
- Mandatory for exports: It is essential for filing shipping bills and conducting export transactions through the customs portal
- IEC linkage: The code is registered against the exporter's IEC on ICEGATE, so that Customs can link a shipping bill to the right bank account
- Customs verification: Helps customs track and validate export transactions
The AD code ensures compliance with regulatory requirements and facilitates smooth transactions within the import-export framework.
Example of AD code
An AD code is required for export processes such as generating a shipping bill. For example, when an exporter files a shipping bill, the AD code is linked to verify the bank details and track foreign exchange inflows.
Practical example:
- An exporter registers the AD code issued by their bank with the ICEGATE portal
- While submitting a shipping bill, the AD code ensures the payment from the foreign buyer is credited to the correct bank account
- The customs department uses the AD code to validate the transaction and monitor compliance
This code ensures streamlined financial operations for export businesses and is mandatory for customs clearance. For more information, refer to our articles on ICEGATE and shipping bill.
Importance of AD code in import-export business
The AD code plays a crucial role in facilitating seamless financial transactions and regulatory compliance in the import-export sector. Below are the key benefits of having an AD code:
- Customs clearance: The AD code is required for filing shipping bills and for customs officers to approve goods for export or import. It acts as a key link between the shipment and the exporter’s bank.
- Foreign exchange tracking: The AD code helps the Reserve Bank of India (RBI) keep track of money coming into and going out of the country through foreign trade, ensuring that all transactions follow exchange control rules and preventing illegal transfers.
- Regulatory compliance: It ensures that businesses follow all laws and policies related to international trade and helps stop illegal practices such as money laundering.
- Access to government benefits: Exporters need the AD code to claim government benefits like IGST refunds and Duty Drawback. These amounts are paid into the exporter's registered bank account.
- Smooth operations: Having a registered AD code makes customs procedures easier, simplifies foreign currency dealings, and ensures that payments are correctly routed to the business’s bank account.
AD code vs IEC: what each code does and who issues it
An exporter needs both codes. They have different issuers and different jobs.
| Point | AD code | IEC |
|---|---|---|
| Full form | Authorised Dealer code | Importer Exporter Code |
| Issued by | An authorised dealer bank | DGFT |
| What it does | Links the exporter's bank account to export payments and Customs records | Identifies the business as an importer or exporter |
| Format | 14-digit code | 10-character code |
| Order | Comes second. The bank's AD code letter carries the IEC | Comes first |
One code does not replace the other.
Validity of AD code
An AD code, once registered, stays valid for life as long as the linked bank account remains the same. If you change your bank account or update any business details connected to it, you must inform customs and update your AD code.
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When you need to update your AD code
You must apply for a new AD code and register it again in the following cases:
- Changing your bank: If your business moves its current account to another bank, you need to get a new AD code from the new bank.
- Changing your bank account: Even if you open a new account within the same bank, you still need to re-register the AD code.
- Changing business details: If your business name, address, or other key details change, you must update your bank and ensure the same changes are reflected in your AD code registration with customs.
Changing export ports: You do not need a new AD code to ship from another port. Since 14 June 2022, an AD code registered at any Indian port is valid across all customs locations in the country.
AD code port of registration: one registration works at all customs locations
Until 14 June 2022, exporters registered the AD code at each port. Under the CBIC advisory of that date, an AD code is registered at one port, called its port of registration, and then works at all customs locations.
- One IEC can hold more than one AD code. The codes can have different ports of registration.
- Request a new registration or an update online through your ICEGATE login.
- Make any change to the account details of an AD code at its port of registration.
- The bank account for export incentives is registered separately, with its IFSC. Since Circular 24/2025-Customs (7 October 2025), a request for another location is approved by the system if the same account and IFSC are already approved at one location.
Format of AD code
An AD code is a 14-digit number that identifies an exporter’s bank account for international trade transactions. It is a unique code issued by an authorised bank and is required for customs clearance as well as for handling foreign exchange related to imports and exports.
The bank writes the AD code on its AD code letter, on the bank's letterhead, in the format set by DGFT. Do not confuse it with the IFSC of the branch, which has 11 characters, or with the bank account number.
AD code vs IFSC: two bank codes that Customs asks for
The bank letter and the ICEGATE form use more than one bank code. Enter each code in the field made for it.
| Code | What it identifies | Format |
|---|---|---|
| AD code | The bank account that is registered for foreign exchange and Customs records | 14-digit code |
| IFSC | The branch of the bank, used for bank transfers and for the export incentive account | 11 characters |
The AD code is not the IFSC and not the bank account number.
How to apply for an AD code?
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Step 1: Get an AD code from your bank
- Contact an AD bank: Visit a bank authorised by the Reserve Bank of India (RBI) to handle foreign exchange.
- Submit an application: Fill out the AD code application form provided by the bank. Write a formal request letter to the branch manager and include all required business details.
Step 2: Collect the necessary documents
- Company documents:
- Copy of your Importer Exporter Code (IEC)
- Company PAN Card
- GST Registration Certificate
- Company’s cancelled cheque
- ID proof of the Director/Proprietor/Partner
- Class 3 Digital Signature Certificate (DSC)
- Bank document:
- Bank Certificate (if required by your bank)
Step 3: Get the AD code letter
- After submitting your form and documents, the bank will check and verify them.
- Once approved, the bank will issue an official AD code letter on its letterhead. You’ll need this letter for the next step.
Step 4: Register your AD code on ICEGATE
- Log in to the ICEGATE portal.
- Go to the “Bank Account” section and choose “Foreign Remittance Account (Authorised Dealer Code)”.
- Click “Add New Bank Account”, enter your details, choose your customs location, and upload the AD code letter from your bank.
- Submit the information to complete your AD code registration.
What the bank's AD code letter must contain
Customs offices decide an AD code request from two documents, uploaded on e-Sanchit with a digital signature: the bank's authorisation letter, and a cancelled cheque or a bank statement endorsed by the bank. The letter must show:
- The name and address of the exporter
- The IEC number issued by DGFT
- The PAN linked to the IEC
- The bank account number linked to the IEC, and the account holder's name
- The bank's confirmation that the PAN of the account matches the PAN of the IEC
- The AD code or the IFSC, as applicable
- The name, address, contact details and official email of the bank branch that holds the account
How long AD code registration takes: bank letter and ICEGATE approval
Registration has two stages. The table gives the time for each.
| Stage | Time |
|---|---|
| The bank issues the AD code letter | A few business days, depending on the bank |
| ICEGATE request received before 2 PM | Disposed of the same day |
| ICEGATE request received after 2 PM | Disposed of before 2 PM on the next working day |
The ICEGATE timelines are the ones that CBIC Instruction No. 25/2023-Customs sets for Customs offices. Register the AD code before you file the first shipping bill.
AD code and export incentives: IGST refund, duty drawback, and RoDTEP
The AD code links a shipping bill to the exporter's bank. Export incentives follow different routes.
| Incentive | How it reaches the exporter |
|---|---|
| IGST refund | Paid to the bank account that is registered for incentives, after the IFSC is validated |
| Duty Drawback | Paid to the bank account that is registered for incentives, after the IFSC is validated |
| RoDTEP | Issued as an e-scrip in the ICEGATE credit ledger, not paid to a bank account |
Register the incentive bank account and its IFSC for the customs location where you file. The AD code alone does not set up the incentive account.
Common AD code registration mistakes and how to avoid them
| Mistake | How to avoid it |
|---|---|
| The name or address differs between the IEC, the GST certificate and the bank letter | Match them before you upload |
| An outdated bank letter is uploaded | Ask the bank for a new letter after any change in the account |
| The code on ICEGATE does not match the code on the bank letter | Copy the code from the letter |
| The registration is not updated after a change of bank or account | Update it as soon as the change takes place |
| Only the AD code is registered and the incentive account is left out | Register the incentive bank account and its IFSC as well |
| A digital signature that is not Class 3 is used | Use a Class 3 organisational digital signature |
AD code for small exporters and marketplace sellers: what to set up first
Export guides for online marketplace sellers in India list the AD code as a requirement. A first-time seller can set up in this order:
- Get the Importer Exporter Code (IEC) from DGFT.
- Hold a current account with a bank that is an authorized dealer in foreign exchange.
- Ask the bank for the AD code letter.
- Register the AD code on ICEGATE.
- File shipping bills only after the registration is in place.
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Conclusion
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The AD code is an integral part of India’s import-export framework, facilitating customs clearance, foreign exchange monitoring, and access to export incentives. Businesses must ensure accurate registration and compliance to streamline their international trade operations.
For exporters facing financial challenges, securing a business loan can help maintain cash flow and manage operations effectively.
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Frequently Asked Questions
Overview
How do I find my bank AD code?
You can find your bank AD code in the letter issued by your bank when requested. It is provided by the branch where your current account is maintained. Alternatively, check with your bank or refer to any export documentation where the AD code is registered.
Does AD code expire?
The AD code does not expire as long as the bank account linked to it remains unchanged. If there is a change in the bank account or branch, the exporter must update and re-register the AD code.
Can I export without an AD code?
No, exporting without an AD code is not permitted. The AD code is essential for customs clearance, linking foreign exchange earnings, and complying with export regulations.
What is the 7-digit AD code?
Some older bank and Customs papers show a 7-digit or 8-digit AD code. That was an earlier branch-level code. ICEGATE registration now needs the 14-digit AD code that your bank issues. If your letter shows a shorter code, ask the bank branch for the 14-digit code.
How to apply for an AD code?
AD code registration involves four steps: obtain the AD code from your authorised dealer bank, keep your DGFT-issued IEC active, register the bank account on the ICEGATE portal, and submit it for verification. Keep the bank authorisation letter and cancelled cheque or bank statement ready for the application.
Which banks issue AD codes for importers and exporters?
An authorised dealer code is issued by RBI-authorised banks, including eligible scheduled commercial, private and co-operative banks authorised under FEMA. Not all banks can issue an AD code; the bank must hold the required foreign-exchange authorisation.
Is AD code mandatory for exports and imports?
Yes, an AD code is generally required for export transactions involving foreign exchange, and not having the required registration can result in a shipment being blocked by customs authorities. An AD code for export helps link export transactions to the authorised dealer bank and supports required reporting. It is also relevant to compliance with FEMA and RBI requirements. The authorised dealer code requirement can apply to both exports and imports, depending on the transaction and applicable customs requirements.
What happens if my AD code is not linked to my IEC before shipment?
The shipment cannot move forward. ICEGATE does not generate a shipping bill number for an exporter whose AD code is not registered and linked to the IEC. Register the AD code against your IEC on ICEGATE first, and file the shipping bill after that. Do this well before the cargo reaches the port.
Can I use one AD code across multiple bank accounts?
An AD code is registered together with the bank account it is linked to. Accounts at different banks have separate AD codes, and one IEC can hold more than one AD code. For a second account at the same bank, ask the bank for an AD code letter that shows that account, and register it.
What happens if my AD code is registered at a different port?
Nothing blocks the shipment. Since 14 June 2022, an AD code registered at one port, its port of registration, works at all customs locations. You need not register it again at the port you use. Change the account details at the port of registration only. The incentive bank account is a separate registration.
Can an AD code be rejected after filing the shipping bill?
The check comes before filing. ICEGATE does not generate a shipping bill number unless the AD code is registered and linked to the IEC. So fix any problem first. Open Bank Account Management on your ICEGATE login, check the status and port of registration, and match the details with the bank letter.
Can I get an AD code before I get my IEC?
No. The bank's AD code letter carries the IEC number issued by DGFT, so the IEC comes first. Get the IEC, then hold a current account with an authorized dealer bank, and then ask the bank for the AD code letter.
Do I need a current account to get an AD code?
Yes. The bank where your business holds its current account issues the AD code. The bank must be authorized to deal in foreign exchange, and not every bank is. Confirm this with your bank before you apply.
Is there any fee for AD code registration?
The government charges no fee for registering the AD code on ICEGATE. The bank may charge for the letter or the account, and the charges differ by bank, so ask your branch before you apply.
How do I check which port my AD code is registered at?
Log in to ICEGATE and open the Bank Account Management option. It shows the port of registration of each AD code on your IEC. Make any change to the account details at that port.
Is the AD code the same as my bank account number?
No. The AD code is a 14-digit number that the bank issues to link your current account with your foreign exchange transactions. The account number is a different number. The bank letter and the ICEGATE form ask for both.
Do different branches of the same bank have different AD codes?
Yes, they can. The AD code can vary from one bank to another and from one branch to another. Use the code on the letter from the branch that holds your account, not a code from a different branch.
Is an AD code the same as a dealer code?
In export and import, yes. The term dealer code usually means the AD code, the 14-digit code that a bank gives when it is an authorized dealer in foreign exchange. It is not a code for a vehicle or product dealer.
What is e-Sanchit and why is it used for AD code registration?
e-Sanchit is the ICEGATE facility where traders upload supporting documents. For AD code registration, you upload the bank's authorisation letter and a cancelled cheque or an endorsed bank statement, with a digital signature. Customs offices decide the request from these documents.
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