An AD Code is a 14-digit numerical code you can get from the bank with which you have a current account to run your import-export business. The code comes printed on a document with the bank’s letterhead, in a format prescribed by the DGFT. A bank must deal in or be an authorised dealer of foreign currency in order to be able to grant an AD Code. This is in line with the purpose behind an AD Code, which is to ensure that foreign currency transactions in an exporter’s current account are from legal trade. Exporters must register their AD Code with the port or airport from where they intend to ship their goods abroad. If the shipment is to be dispatched from an inland container depot (ICD), AD Code registration is required for that facility as well as the port attached to it. An AD Code registration has a lifetime validity

A registered AD Code for export is essential for customs clearance. If you do not have one, you will not be able to generate your shipping bill number, which is compulsory for customs clearance.

An AD Code registration with customs ensures that any government benefits you avail of – duty rebates and exemptions, GST (Goods and Services Tax) refunds, etc. – are credited directly to your current account. Based on AD Code registration, the companies may receive various incentives for their imports/exports from the DGFT, Export Promotion Council, Customs, and several other Government schemes.

An AD Code registration has a lifetime validity. However, if an exporter ships from more than one port, whether in the same state or in different states, they must register the AD Code for each of these ports.

AD Code Registration is a must for many reasons in carrying out export business. The significant reasons are as follows:- Exporters who want to export goods from India must register the AD Code. A Shipping Bill is one of three documents that must be submitted for export customs clearance. Without an AD Code registration, you cannot produce a Shipping Bill on Icegate, Indian Customs' electronic data exchange platform. AD Code Registration allows you to transfer credit to the trader's current account directly. Any Government advantages you want to avail of, for example, duty rebates and exemptions, GST (Goods and Services Tax) refunds, and so on, are credited straight to your current account if you have an AD Code registered with customs. Registering or submitting the AD code in each & every port from where you want to export shipment is a mandatory requirement. When exporting goods, exporters must provide the IE Code as well as the AD Code. Furthermore, while receiving money from Abroad, Banks can demand the AD code of the business/individual.