AD Code ( Authorized Dealer Code)admin
An AD Code is a 14-digit code, which is given by the bank where the exporter maintains a business current account. The first four digits of the code represent the bank code, the next four digits represent the branch code, and the last six digits represent the unique account number of the authorised dealer.
This code, printed with the bank letterhead, can be obtained after the exporter has registered for an Import Export Code (IEC) by the Director General of Foreign Trade (DGFT). The Reserve Bank of India (RBI) issues AD Codes to authorised dealers to facilitate their foreign exchange transactions. AD Codes are necessary for all foreign exchange transactions, including imports, exports, and remittances.
Entities that need to engage in foreign exchange transactions in India, such as importers, exporters, and individuals, need to provide the AD Code of the authorized dealer they are transacting with to complete the transaction. The AD Code helps to track foreign exchange transactions and ensure compliance with relevant laws and regulations governing such transactions.
In summary, AD Code is an important identification code used for foreign exchange transactions in India, and it is issued by the RBI to authorized dealers such as banks and financial institutions
Why it is necessary to get an Authorized Dealer Code?
An Authorized Dealer Code is a unique code that is assigned to a business by an authorized agency or authority, such as the government or a financial institution. It is necessary to obtain an Authorized Dealer Code for a number of reasons, including:
- Compliance with regulations: Depending on the industry and the country where the business operates, certain regulations may require businesses to have an Authorized Dealer Code to conduct certain types of transactions or to comply with specific laws and regulations.
- Access to foreign currency: If a business deals with foreign currency transactions, it may need an Authorized Dealer Code to access foreign currency from authorized banks or financial institutions.
- Import and export activities: Businesses involved in import and export activities may need an Authorized Dealer Code to comply with the customs and foreign trade regulations of their country.
- Tax purposes: Some countries require businesses to have an Authorized Dealer Code for tax purposes, such as to report certain transactions or to receive tax incentives or exemptions.
Overall, obtaining an Authorized Dealer Code is important for businesses that engage in international trade, currency transactions, or other activities that are subject to regulations or require government oversight.
How to register an AD code online in India
Once you have all the documents mentioned above, you can register your AD code online on ICEGATE.
- Step 1: Go to the ICEGATE portal and slog in the portal.
- Step 2: Go to the bank account management panel.
- Step 3: Under that panel, select the option of Authorized Dealer or AD code
- Step 4: Fill out all the details necessary in the portal by uploading documents in the e-Sanchit.
- Step 5: Portal will generate an image reference and document reference numbers.
- Step 6: Click add a New Account under the Authorized dealer code registration dashboard.
- Step 7: Enter the necessary bank details, port details, and the image reference number.
- Step 8: if all details are valid, OTP is sent to the registered mobile number and email.
After verifying, the registration is complete. Now the customs would go through it and either accept or reject it.
- Step 9: You can check the request status on the Authorized Dealer Code Registration dashboard by clicking on the status icon
If the request is approved, you can view the registered AD code and Bank details on the same dashboard.
Documents Required for AD Code Registration Online
A particular set of documents is necessary for AD Code online registration. They are:
- 1. AD code registration letter authorized by the bank
- Self-attested copies of:
A. GST registration.
B. Last three years of IT returns of the company.
C. Bank statement for the last 12 months.
D. Company’s Import Export Code (IEC).
E. Company’s PAN
- Board’s resolution.
A. Partner’s PAN, Aadhar Card, and Voter/Passport ID.
- Signatory’s PAN, Aadhar Card, and Voter/Passport ID.