Home Business Here is how you can register & obtain AD for your business

Here is how you can register & obtain AD for your business

ad code

In today’s world, every business wants to expand and get exposed to the global markets for various reasons including growth, expansion, increased profits, etc. Moreover, since the inception of e-commerce, shopping is no longer limited to boundaries, which makes it more crucial for all businesses today to get on the bandwagon to sustain in this cutting edge competitive world.

Additionally, the benefit of globalization is not just limited to business owners as it also adds to the growth of the economy of a country as well. This makes it an important job for the government to encourage businesses to grow globally and increase the import and export transactions from around the world.

What is an AD code?

The code, also known as the Authorized Dealer code, is a 14 digit code that can only be given to you from the bank in which you have an active current account. This AD code is required for any exporter to be able to successfully clear customs at every port that is a part of their final destination.

Why do you need an AD code?

Earlier, the consumer was specific with their buying patterns and used to shop from the domestic markets only. However, with the advancement in technology and the high awareness and availability of different goods around the world, the trend of using only home-grown goods is slowly fading out, making it almost impossible for all new as well as old businesses in the market to ignore this new aspect to contribute to their overall business sustainability.

How can you register and obtain an AD code?

The process of obtaining and registering an AD code is not too difficult and can be broken down into the following steps:

To obtain the AD code:

  1.  Write a letter to the concerned bank to get an AD Code issued, with a form format that is easily available online. This letter is written to the manager of the concerned bank.
  2.  After processing your application is complete, a 14 digit AD code will be issued against your name/business. Please ensure that the letter of the issuance of the AD code is given to you on the bank’s letterhead as any other letters will not be accepted for registration.
  3.  Ensure that the issued AD code is registered with the CHA only by the exporter.

To register your AD code

To register your AD code with the CHA, ensure all the below mentioned documents are readily available with you:

  1. Authority letter of the AD code registration from the bank
  2. Self-attested copies of:
  3. GST Registration
  4. IT returns of the company or the partners
  5. Bank statement of the last 12 months, minimum
  6. PAN no. of the company
  7. All partners/signatories/directors PAN, Aadhaar, as well as Voter ID/passcode copies
  8. Import Export code of the business
  9. Board resolution, if applicable

Once the above-mentioned documents are received by the CHA, the department takes approximately 3 to 5 working days to process and register your AD code. After your AD code is registered with the CHA, export shipping bills that are generated on the Electronic Data Interchange System will reflect your AD code on them, aiding smooth customs clearance for your business.

However, please ensure that your registered AD code is also registered at every port the shipment of your goods will be passing through to ensure smooth operations and logistics for your business. It is highly beneficial as once the AD code is registered at all the required ports, you get lifelong validity to pass your goods on those ports without any renewals or upgradation.

 Register Today and Grow Globally!!

To change the AD code:

There is also an option to make changes to your existing AD code if required. This can be done through the following steps:

  1. Write a letter to the bank that initially issued the previous AD code to your business, mentioning the reason for the required change.
  2. Keep all the documents that were previously submitted to register your AD code available with you.
  3. Also, keep the official email ID of the bank manager for any further verification, if need be.

After you have all these above documents ready, you need to consult the EDI help desk.  A new AD code under your name/business will be issued.

One of the other main reasons to have a registered AD code is to ensure your business adheres to the Electronic Data Interchange System. This is because, without a registered code, there is a high chance that you will not receive a shipping number on your bills. Yes, there is an ICE Gate Portal that can provide you with the shipping bill but an absence of an AD code will make it difficult for you, as it will not be accepted for custom clearance. So go register today!


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