/ How to register Authorized Dealer (AD) code with a valid Importer Exporter Code (IEC)?

An application to connect Authorized Dealer (AD) code with Importer Exporter Code (IEC) needs to be made with the directorate general of foreign trade, who informs the customs to conduct the necessary change.

On receipt of the Authorized Dealer (AD) code letter, the customs connect the Authorized Dealer (AD) code with the Importer Exporter Code (IEC), thereby making an auto appearance of the Authorized Dealer (AD) on all documents pertaining to the respective Importer Exporter Code (IEC).

Know all about Authorized Dealer (AD) code Registration – What is AD Code?

When doing international trade using a current account, you will need a special code called an Authorized Dealer (AD) code from your Bank. The Directorate General of Foreign Trade (DGFT) -approved format for this code is printed on a document with the bank’s letterhead. Obtaining an Authorized Dealer (AD) code requires a bank to either engage in foreign currency trading or be recognised as an authorized dealer of foreign currency. This is consistent with an Authorized Dealer (AD) code’s goal of tracing the origin of a foreign exchange transaction in an exporter’s current account to legitimate business activity.

The Authorized Dealer (AD) code must be registered with the airport or port where the export will originate. Thus, the Authorized Dealer (AD) code registration is necessary for both the inland container depot (ICD) and the port associated with the ICD if the shipment is to be sent from an ICD.

Is Authorized Dealer (AD) code registration essential for foreign trading companies?

One of three documents required by customs for the clearance of exports is a Shipping Bill. A shipping bill contains comprehensive information about the items being shipped, the port of export, and the destination country.

Customs officers approve exports based on Shipping Bills. Unless you have registered your Authorized Dealer (AD) code with ICEGATE (Indian Customs’ electronic data interchange platform), you cannot create a Shipping Bill.

Furthermore, registering your Authorized Dealer (AD) code with customs may be eligible for government benefits, such as duty exemptions and rebates.

How to modify an existing Authorized Dealer (AD) code?

An application for an updated AD Code may only be submitted once to the Bank holding your current account. If your bank account information changes, you must register your AD Code once more to continue producing a shipping bill number. As a result, a new AD Code would be created. If the port of shipment is moving, you will also need to re-register the AD Code with customs.

What are the benefits of Authorized Dealer (AD) code Registration for the import/export of Goods in India?

• The importer can only remit the amount to the foreign supplier if the Authorized Dealer (AD) code appears on the bills of entry, customs, and bank portals.
• Exporters/Importers can abide by the legal requirements of obtaining Authorized Dealer (AD) code Registration.
• Exporters will not be able to generate shipping bills without an AD Code.

Maier Vidorno Altios has experts who import products for clients from all over the world. Our team manages all the aspects of exporting to India and distribution to your end client. Our team manages all the aspects of exporting to India and distribution to your end client, please write to us  if you want to register your Authorized Dealer (AD) code with the valid Importer Exporter Code (IEC) to process your customs clearance procedures with successful and efficient business operations.