The Authorized Dealer (AD) Code is a 14-digit number issued by a bank authorized by the Reserve Bank of India (RBI) to deal in foreign exchange. This code is mandatory for exporters and importers to facilitate customs clearance, foreign remittances, and trade compliance.
Key Purpose of AD Code:
✅ Customs Clearance – AD Code must be registered with ICEGATE to process Shipping Bills.
✅ Foreign Exchange Transactions – Required for inward and outward remittances of foreign currency.
✅ Duty Drawback & Incentives – Essential for claiming GST refunds, MEIS, SEIS, and RoDTEP benefits.
✅ Compliance with DGFT & RBI – Helps track forex inflow and trade transactions.
What is an IFSC Code?
The Indian Financial System Code (IFSC Code) is an 11-character alphanumeric code assigned by the Reserve Bank of India (RBI) to uniquely identify bank branches participating in online fund transfers. It is essential for NEFT, RTGS, and IMPS transactions.
Key Purpose of IFSC Code in Trade:
✔ Facilitates international payments – Required for receiving/exporting foreign exchange.
✔ Verifies bank details in ICEGATE registration – Ensures correct bank linkage for refunds and trade transactions.
✔ Used in DGFT applications – Needed for EPCG, Advance Authorization, and other schemes.
Difference Between AD Code & IFSC Code
| Feature | AD Code | IFSC Code |
|---|---|---|
| Issued By | Authorized Dealer (Bank) | RBI |
| Number Format | 14-digit numeric code | 11-character alphanumeric code |
| Purpose | Foreign exchange transactions, export-import clearance | Domestic banking & online fund transfers |
| Where It Is Used | ICEGATE, DGFT, Customs, RBI reports | NEFT, RTGS, IMPS, Trade settlements |
| Link to Trade | Required for export & import customs clearance | Used for bank account verification in trade transactions |
How to Obtain an AD Code?
✔ Visit your bank (Authorized Dealer) and request an AD Code issuance letter.
✔ Provide company details, IEC (Importer Exporter Code), GSTIN, and business registration documents.
✔ The bank issues a 14-digit AD Code linked to your account.
✔ Register the AD Code with ICEGATE for customs clearance and trade transactions.
- 1 What is an AD Code in exports?
- It is a 14-digit code issued by a bank, necessary for export clearance and receiving foreign exchange.
- 2 Why is AD Code registration required in ICEGATE?
- Without AD Code registration, exporters cannot file Shipping Bills, and refunds like duty drawback, IGST refunds, and RoDTEP cannot be processed.
- 3 How long does AD Code registration take?
- Typically, 2-5 working days after submitting required documents.
- 4 Can an exporter have multiple AD Codes?
- Yes, exporters can register multiple AD Codes for different ports of export.
- 5 Is AD Code required for imports?
- Yes, AD Code is needed for remitting import payments and compliance with RBI guidelines.
- 6 What documents are needed for AD Code registration?
- • IEC Certificate • GST Registration Certificate • Bank AD Code Letter • PAN & Business Registration
- 7 Can an AD Code be changed?
- Yes, exporters can change their AD Code by submitting a fresh request to the bank and updating it in ICEGATE.
- 8 What happens if AD Code is not registered with ICEGATE?
- Exporters cannot file Shipping Bills, which can delay customs clearance and export incentives.
- 9 Is IFSC Code mandatory for export transactions?
- Yes, IFSC Code is required for banking transactions related to exports and imports.
- 10 How to find my bank’s IFSC Code?
- The IFSC Code is printed on cheque leaves, bank statements, and can be found on the RBI website.
- 11 Does AD Code change for different branches of the same bank?
- Yes, AD Codes vary branch-wise, even within the same bank.
- 12 Can an IFSC Code be used instead of an AD Code?
- No, IFSC Code is for domestic banking, while AD Code is for foreign trade transactions.
- 13 What if my AD Code registration is rejected on ICEGATE?
- Ensure correct bank details, IEC, and AD Code letter are submitted.
- 14 Do service exporters need an AD Code?
- Yes, for foreign exchange remittances and compliance with RBI norms.
- 15 How can Pragati Exim Solution help with AD Code & IFSC Code registration?
- ✅ Obtaining AD Code from your bank ✅ Registering AD Code on ICEGATE ✅ Resolving rejection issues & compliance
An AD Code (Authorized Dealer Code) and IFSC Code (Indian Financial System Code) are essential for businesses engaged in international trade. They facilitate smooth financial transactions, including payments for imports and exports, by ensuring that your bank is authorized to process foreign transactions and that payments can be easily identified through a standardized system.
At Pragati Exim Solution, we help businesses with AD Code and IFSC Code Registration, ensuring compliance with Indian financial regulations and facilitating seamless cross-border transactions.
- 1 What is an AD Code?
- The AD Code (Authorized Dealer Code) is a unique code issued by the Reserve Bank of India (RBI) to banks and financial institutions that are authorized to handle foreign exchange transactions. It is mandatory for businesses involved in import or export activities to enable smooth and compliant international payments.
- 2 Why do I need an AD Code?
- An AD Code is essential for businesses to facilitate cross-border payments, receive payments from international clients, and remit funds for imports and exports. It allows for compliance with India's foreign exchange regulations.
- 3 What is an IFSC Code?
- The IFSC Code (Indian Financial System Code) is an 11-digit code used to uniquely identify a bank branch in India for electronic payments such as NEFT, RTGS, and IMPS. It helps ensure that payments are correctly routed to the designated branch and account.
- 4 How do I get an AD Code?
- To obtain an AD Code, you need to apply through your authorized dealer bank (the bank authorized to deal in foreign exchange). The bank will submit your application to the RBI for approval. You will need documents such as your IEC, PAN card, GSTIN, and bank account details.
- 5 How do I obtain an IFSC Code?
- If you already have a business account, the IFSC Code is automatically assigned to your bank branch. You can obtain it from your bank passbook, bank statement, or directly from your bank’s website. If needed, your bank can provide you with this code.