International Trade: The Significance of AD Code

AD Code’s Trade Significance

Authorized Dealer Code (AD Code) serves as a crucial element in international trade, particularly for customs clearance and regulatory compliance. Here’s a detailed overview of the AD Code, its significance, registration procedure, and important points to note:

Significance of AD Code in International Trade:

1. Tracking Foreign Currency Trades: AD code registration enables authorities to monitor and track foreign currency transactions, ensuring transparency and stability in the economy.
2. Mandatory for Customs Clearance: AD Code is essential for generating shipping bills, facilitating smooth customs clearance procedures by linking trader details with customs authorities.
3. Direct Deposit of Government Benefits: Registered AD code allows for direct deposit of government benefits, incentives, or subsidies into the exporter’s bank account, streamlining financial support processes.
4. Simplifying Import-Export Processes: AD Code simplifies import-export operations by providing a standardized identification for foreign trade activities. It helps in maintaining comprehensive records of traders involved in international trade, aiding effective regulation and oversight.

AD Code Registration Procedure:

Documents Required:

• Bank Certificate (as per Customs Public Notice No. 93/2020).
• Company PAN Card with Seal and Signature.
• Import Export Code (IEC) Certificate with Seal and Signature.
• GST Certificate with Seal and Signature.
• Company’s canceled cheque.
• Class 3 Digital Signature Certificate (DSC).

Steps for AD Code Registration:

1. Visit Your Business Bank: Approach the bank where your business maintains its current account and apply for AD Code.
2. Submit an Application: Provide all necessary details and supporting documents as requested by the bank.
3. Obtain the AD Code Letter: Upon approval, receive an AD code letter from the bank in the specified format.
4. Register for AD Code at Exporting Ports: Use the AD code letter to register for AD code at each port you export goods from.

ICEGATE AD Code Registration Procedure:

1. Login to ICEGATE Portal: Access the official ICEGATE website and log in using your credentials.
2. Navigate to e-Sanchit: Under Filing Services, select “e-Sanchit” to begin the registration process.
3. Upload Supporting Documents: Upload all required documents for AD Code registration. Note the generated Document Reference Number (DRN) and Invoice Reference Number (IRN).
4. Select Financial Services: Return to the main page and choose “Bank Account Management” followed by “AD Code Registration.”
5. Fill in the Registration Form: Provide accurate company details, PAN Card, IEC Certificate, GST Certificate, and other relevant information.
6. Submit the Registration Form: Review the filled information for accuracy and submit the AD Code registration form.

Important Points to Note:

• AD Code registration has a lifetime validity unless there are changes to the associated bank account.
• The process must be completed in person at the business bank; no online application facility is available.
• Ensure to keep the AD code letter safe, as it is required for customs clearance procedures and future export transactions.

By following these steps and adhering to the necessary documentation requirements, businesses can obtain an AD Code, facilitating smoother import-export operations and ensuring compliance with regulatory standards.