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What is Authorized Dealer code? Understand AD code for exports from India
AD code is required by Indian exporters before they can do business globally. Learn more about its process, benefits, and documents required to obtain it.
Exporting from India requires adherence to several regulatory procedures, one of which is obtaining an Authorized Dealer (AD) Code. Issued by a banking institution, the AD Code is essential for ensuring seamless international transactions. This blog post will cover what an AD Code is, why it matters in exports, its format, required documentation, and the steps to obtain one.
What is an Authorized Dealer code (AD code)?
The AD code is a 14-character alphanumeric code that is essential for smooth processing of export-related transactions, including the receipt of payments in foreign currency. AD code ensures that all export proceeds are routed through the correct banking channel. It is mandatory for exporters to register their AD code with the Directorate General of Foreign Trade (DGFT) and Customs authorities to ensure seamless export operations.1
What is bank AD code?
A bank AD code is issued by banks authorized by the Reserve Bank of India (RBI). It is assigned by the bank where the exporter maintains an account, and is specific to the exporter’s branch. It must be registered with the customs department to facilitate seamless financial transactions related to international trade. The AD code letter from the bank is a document that proves the exporter’s registration with an authorized dealer.2
Importance of AD code in exports
AD code ensures all export transactions comply with RBI and DGFT regulations. It helps in monitoring foreign exchange inflows and outflows, reducing the risk of financial irregularities. Customs authorities require AD code to verif5y exporter’s banking details. Without this, shipments may face delays or even rejection at the port.
Format of AD code
AD codes follow a specific 14-character alphanumeric format. Here’s how it is structured:
Bank code
The first four characters represent the bank code assigned by RBI to the bank.
Branch code
The next three digits represent the branch code of the bank branch where the exporter’s account is maintained.
Unique serial number
The last seven alphanumeric characters are a unique identifier assigned by the bank to the exporter.3
AD code bank letter format
Here is a sample of an AD code bank letter format:
Pro tip
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Example of AD code
Suppose ABC Textiles Pvt. Ltd., a small textile exporter based in Mumbai, is preparing to ship a consignment of fabrics to the US. To ensure smooth customs clearance and payment processing, the company needs to register its AD code with the DGFT and Customs authorities. Their AD code details will be as follows:
● Exporter name: ABC Textiles Pvt. Ltd.
● Bank branch: State Bank of India, Fort Branch, Mumbai
● AD code: SBIN 0123456 EX01
Breakdown:
1. First 7 characters (Bank branch code):
o SBIN: Represents the bank code for State Bank of India.
o 012: Denotes the branch code for the Fort Branch in Mumbai.
2. Next 7 characters (Exporter’s unique ID):
o 3456EX01: A unique identifier assigned by the bank to ABC Textiles Pvt. Ltd.
o Note: Banks often include letters (e.g., “EX”) to denote export-related accounts.
When ABC Textiles initiates the export process, they provide their AD code (SBIN 0123456 EX01) to the customs authorities. This code ensures that the export proceeds are credited to their current account with the State Bank of India. Additionally, the AD code helps customs verify the exporter’s banking details, ensuring compliance with RBI regulations.
● Exporter name: ABC Textiles Pvt. Ltd.
● Bank branch: State Bank of India, Fort Branch, Mumbai
● AD code: SBIN 0123456 EX01
Breakdown:
1. First 7 characters (Bank branch code):
o SBIN: Represents the bank code for State Bank of India.
o 012: Denotes the branch code for the Fort Branch in Mumbai.
2. Next 7 characters (Exporter’s unique ID):
o 3456EX01: A unique identifier assigned by the bank to ABC Textiles Pvt. Ltd.
o Note: Banks often include letters (e.g., “EX”) to denote export-related accounts.
When ABC Textiles initiates the export process, they provide their AD code (SBIN 0123456 EX01) to the customs authorities. This code ensures that the export proceeds are credited to their current account with the State Bank of India. Additionally, the AD code helps customs verify the exporter’s banking details, ensuring compliance with RBI regulations.
Benefits of AD code
1. Simplified export process
AD code streamlines the export process by linking the exporter’s bank account with customs and regulatory authorities.
2. Faster customs clearance
With AD code, customs clearance becomes quicker, reducing shipment delays.
3. Access to export incentives
Exporters can avail government schemes and incentives by registering their AD code
4. Transparent transactions
The AD code ensures transparency in foreign exchange transactions, reducing the risk of fraud.4
Documents required for AD code
To register for an AD code, exporters need to submit the following documents:
● Exporter’s PAN card: This is needed for taxation purposes.
● ID proof: Aadhaar, voter ID, or passports to verify the identity of the exporters.
● Importer Exporter Code (IEC): Importer Exporter Code is mandatory for all exporters.
● Bank account details: Must include current account number and branch information.
● Address proof: Could be a utility bill or rental agreement.
● Authorization letter: A letter authorizing the bank to issue the AD code.5
How to get an AD code
The following is an overview of some steps involved in obtaining an AD code:
Step 1
Reach out to the authorized dealer bank branch where you maintain a current account.
Step 2
Obtain the application form for AD code and fill it accurately.
Step 3
Submit the required documents, including IEC and PAN card.
Step 4
Request the bank to issue an AD code letter.
Step 5
Once issued, submit the letter to the customs office where exports will be processed and register the AD code with the DGFT and customs authorities.
Step 6
Customs officials will verify the details and approve the code for shipping bill generation.6
Need help obtaining your AD code?
Conclusion
AD code is vital for exports from India. It ensures regulatory compliance, simplifies customs clearance, and facilitates faster payment processing. For exporters, understanding and obtaining an AD Code is not just a regulatory requirement but a strategic advantage. If you are a seller looking to expand your export business, e-commerce export programs like Amazon Global Selling can empower you to reach global customers and take your products to the world.
Amazon Global Selling: Easy e-commerce exports and hassle-free shipping
If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Frequently Asked Questions
1. Can we register an AD code online?
It is possible to register an AD code online. You can log into ICEGATE, which allows you to make registration or modification request online.
2. How do I find my bank AD code?
An exporter can obtain an AD code from the bank where he maintains the business's current account.
3. Can we export without an AD code?
An AD code is mandatory for exports from India.
4. Is the AD code different for each branch?
AD code is different for each branch of a bank. It is assigned by the Reserve Bank of India (RBI) to each authorized branch of various banks.
Published on December 30, 2021.
Updated on April 21, 2025.
Sources:
1. https://www.dhl.com/discover/en-in/logistics-advice/import-export-advice/the-importance-of-ad-code-in-India-for-import-and-export
2. https://export.ebay.com/in/resources/weblog/ad-code-authorized-dealer-a-step-by-step-guide-to-registration-and-format/
3. https://www.credlix.com/blogs/guide-to-ad-code-authorized-dealer-registration-and-format
4. https://wareiq.com/resources/blogs/what-is-ad-code/
5. https://old.icegate.gov.in/Download/AD_Code_Bank_Account_Registration_Advisory_Final.pdf
6. https://www.citrusfreight.com/resource/blog/ad-code-registration
Updated on April 21, 2025.
Sources:
1. https://www.dhl.com/discover/en-in/logistics-advice/import-export-advice/the-importance-of-ad-code-in-India-for-import-and-export
2. https://export.ebay.com/in/resources/weblog/ad-code-authorized-dealer-a-step-by-step-guide-to-registration-and-format/
3. https://www.credlix.com/blogs/guide-to-ad-code-authorized-dealer-registration-and-format
4. https://wareiq.com/resources/blogs/what-is-ad-code/
5. https://old.icegate.gov.in/Download/AD_Code_Bank_Account_Registration_Advisory_Final.pdf
6. https://www.citrusfreight.com/resource/blog/ad-code-registration
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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