Format And Registration Of AD Code Request Letter

According to data from the Ministry of Commerce and Industry, India's merchandise exports reached USD 437.06 billion in FY24, with first-time exporters contributing significantly to the rise.

One simple oversight that often trips them up is the missing AD Code. If you are an exporter, this small but mighty number can make or break your entire shipment.

Not everyone lives and breathes trade regulations. Many assume that you complete the export paperwork, pay the fees, and the shipment moves smoothly. But in reality, there is an invisible layer of compliance beneath this process. The AD Code is a big part of it.

If you are unsure about how to draft a request letter for AD Code or which format works best, do not worry. Let us run through the process. From what an AD Code is to how to register it with your bank and the right format to use, let's explore everything.

TL;DR

• AD Code is a 14-digit number required to generate a shipping bill and clear goods through Indian Customs.
• Exporters must submit a formal request letter to their bank along with documents like IEC, PAN, and GST certificates.
• A separate AD Code registration is needed for each port of export.
• The AD Code links your IEC to the correct bank branch for foreign exchange tracking and RBI compliance.
• Missing or incorrect AD Code registration can delay shipments, block incentives, and cause compliance issues.
• Registering the AD Code with Customs (ICEGATE) is essential after getting it from the bank.

What is an AD Code?

An AD Code, or Authorized Dealer Code, is a 14-digit numerical code issued by a bank that’s authorized by the Reserve Bank of India (RBI) to deal in foreign exchange. This code is essential for exporters in India who want to ship goods or services internationally and receive payments in foreign currency. Without an AD Code, Indian Customs will not allow you to generate a shipping bill, which is mandatory for export clearance.

Example of an AD Code: 05123456789012

Here’s a breakdown of the digits:

• The first 2 digits represent the bank code as per the RBI.
• The next 4 digits represent the branch code.
• The remaining 8 digits are unique to the exporter’s account for tracking export transactions.

The request letter for AD Code is the first step in this process. You, as an exporter, must submit a formal AD Code request letter to the bank where you hold your current account. This letter informs the bank of your intention to obtain an AD Code and enables them to generate one for use at a specific port or airport through which your shipments will move.

Each port you export from requires a separate bank AD Code letter, so if you're exporting from multiple locations, you'll need to submit a separate AD Code request letter for each one. The bank then issues the AD Code, and you submit this code to the ICEGATE portal or through a bank AD Code letter format prescribed by Customs.

Now that you understand why the AD Code is critical for export compliance let’s look at how to get it. Before you can register the AD Code at your port of shipment, you’ll need to submit a few key documents to your bank.

Suggested Read: Applying for Import and Export License in India

Documents Required for AD Code Certificate Registration

To register for an AD Code certificate, you must prepare and submit specific documents. These verify your business credentials and ensure compliance with export regulations. Here is a list of the key documents you will need:

Example of an AD Code Request Letter

With the documents in place, the next step is to complete the AD Code registration with your bank. Below is a step-by-step breakdown of how to register your AD Code with the bank.

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Steps to Register AD Code with a Bank

This section outlines the step-by-step process for registering your AD Code with the bank, including the required documents and instructions on completing the registration on the ICEGATE portal:

1. Choose the Right Bank Branch

Register your AD Code at the bank branch that will handle your export transactions. This is usually linked to your current account or the branch managing your export documents.

2. Prepare Required Documents

Collect these documents:

• Request letter on company letterhead (check if the bank has a prescribed format)
• Import Export Code (IEC) certificate
• GST registration certificate
• PAN card of the company
• KYC documents as required by the bank

3. Submit the Request

Submit your request and documents to the bank’s export or trade finance desk. Some banks also offer an online submission option through their websites or portals.

4. Bank Verification and Processing

The bank will verify your documents and register your AD Code in their system. Approval from the branch manager may be required in some cases. This process usually takes a few working days.

5. Receive AD Code Registration Letter

Once registered, the bank will issue an AD Code Registration Letter. You need this to proceed with Customs registration.

6. Register AD Code with Customs (ICEGATE)

After receiving the letter, register your AD Code on the ICEGATE portal or at your port of export. Without this step, you cannot generate shipping bills or clear your export goods.

7. Update DGFT Profile (if required)

Some banks recommend updating your DGFT profile with the registered AD Code to ensure consistency across export documentation systems. 

Now that you know the steps to register an AD code with the bank, let's look at the common mistakes to avoid to ensure no delays. 

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Common Mistakes Exporters Should Avoid

Many first-time exporters assume that once they submit the AD Code registration request to their bank, the process is complete. But in reality, a few extra steps and checks can save you from costly delays at Customs or issues with export documentation. Keep these tips in mind:

1. Follow up proactively

After submitting your request, follow up with the bank’s trade finance team. Processing may take a few days, and delays can affect your shipment schedule.

2. Register for each port

If you plan to export from multiple ports, you must register your AD Code separately for each port with Customs. Many exporters miss this and face shipment delays.

3. Ensure consistency across documents

Your IEC, GST, PAN, and AD Code registration details must match exactly. Mismatches can trigger compliance issues or Customs queries.

4. Don’t skip ICEGATE registration

Registering your AD Code with the bank alone is not enough. You must complete registration with Customs (ICEGATE) or at the port to enable shipping bill generation.

5. Keep your DGFT profile updated

If you change banks or open a new export account, update your DGFT profile and notify Customs. This avoids confusion or mismatches when filing online documents.

So, why does an exporter need an AD Code in business? Let us find out below.

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Why Does an Exporter Need an AD Code?

An AD (Authorized Dealer) Code links your export shipments to your bank account, enabling customs clearance at ports. Without it, your shipping bills won’t be processed, and you can’t legally export goods.

Here’s why every exporter should submit an AD code request letter to the bank early in the process:

1. Mandatory for Shipping Bill Generation

Customs will not accept a shipping bill unless you have a registered AD Code. Without a valid AD code letter from the bank, your goods will be held up at the port. The AD code letter allows your IEC (Importer Exporter Code) to be linked to the bank and port for smooth clearance.

2. Links Export Proceeds to Your Bank

Your export payments must go through a recognized bank. The AD Code ties your IEC to the correct bank branch so that inward remittances are tracked properly. This ensures compliance with the RBI’s foreign exchange regulations. That’s why your bank AD code letter must clearly list your IEC, port of shipment, and bank details.

3. Helps Customs and RBI Track Export Earnings

Customs and the Reserve Bank of India (RBI) use the AD Code to monitor export earnings. A properly submitted AD code request letter ensures your transactions are recorded correctly, reducing the risk of regulatory issues.

4. Avoids Delays at Port

No AD Code means no customs clearance. Many exporters face delays because they didn’t submit a timely request letter for AD code to the bank. Getting your AD code letter format right the first time prevents costly hold-ups at the port.

5. Ensures Proper Bank Monitoring

Banks use the AD Code to verify your exports and match them to incoming payments. After receiving your AD code request letter, they will issue an AD code letter from the bank within a few working days.

6. Enables Processing of Export Incentives

Export benefits such as duty drawback, RoDTEP, and GST refunds rely on correct AD Code registration. Without a valid AD Code, your claims may be delayed or rejected.

7. Supports Accurate Reconciliation of Foreign Currency Earnings

AD Codes help match your shipping bills with export proceeds. This prevents discrepancies in your export documentation and simplifies audits.

8. Meets RBI Reporting Requirements

FEMA (Foreign Exchange Management Act) regulations require exporters to report transactions accurately. The AD Code connects your bank records to customs filings, helping you comply with RBI reporting rules.

9. Allows Multi-Port Flexibility

If you export through multiple ports, you can register your AD Code at each one by submitting the appropriate AD code request letter and AD code letter from the bank. This flexibility helps you scale your operations as your export volume grows.

Now that we know everything about AD Code and how to register it with the bank, let's find out how Pazago helps you maintain the precise documents you need as an exporter.

How Pazago Simplifies Export Documentation and Letter Submissions

Export operations depend on precise documentation, especially when submitting request letters to banks or port authorities. Even small errors or delays can disrupt shipments. Pazago simplifies this process by offering tools that manage formatting, submission, and compliance with ease.

Here’s how Pazago supports this critical part of your export workflow:

1. Real-Time Tracking: Know where your shipments are at all times. Pazago offers live tracking and centralized visibility, helping you monitor delays, update customers, and stay in control.
2. Centralized Documentation: Avoid delays caused by missing paperwork. Pazago stores all shipping documents in one place to reduce errors and simplify compliance.
3. Risk Management: Shipments face risks in transit. Pazago provides built-in insurance options and an easy claims process to protect your cargo and reduce losses.
4. Smooth Communication: Pazago connects your team, carriers, and partners with real-time messaging tools so everyone stays informed and aligned.
5. Quality Checks: Ensure your products meet standards before shipping. Pazago digitizes inspection workflows to help you avoid rejections or disputes.
6. Simplified Payments and Compliance: Pazago streamlines cross-border payments, handles currency conversion, and helps you stay compliant with global shipping regulations.

By addressing common pain points such as document confusion, lack of visibility, and poor coordination, Pazago brings structure and clarity to your export workflow. Whether you are handling a single request or managing dozens, Pazago helps you stay on track.

Conclusion

An AD Code may seem like a small detail in the export process, but without it, your shipments risk delays and compliance issues. Securing the code early simplifies customs clearance and keeps exports on track.

As global trade shifts toward digital processes, using the right tools helps businesses manage export documentation and compliance more efficiently. This reduces risks and ensures smoother operations.

Pazago makes this easier by providing centralized document management, automated alerts, and real-time tracking. It helps you complete steps like AD Code registration with less effort and fewer delays.

Want to simplify your export workflows? Explore how Pazago can support your business. Book a demo today.

FAQs

1. What is an AD Code, and why do I need to request it?

Ans. An AD Code is a unique number issued by authorized dealers (usually banks) to exporters/importers for tracking and regulatory purposes under the Foreign Exchange Management Act (FEMA). Exporters must include the AD Code in shipping bills to avoid shipment delays or rejections.

2. How do I write a formal AD Code request letter to my bank?

Ans. A formal AD Code request letter should include your company’s details, bank account information, the purpose of the request (export/import), and a polite request to register or issue the AD Code. Use a clear, professional format with a date, subject line, salutation, body, and closing.
3. Can I send the AD Code request letter via email, or does it have to be a physical letter?

Ans. Most banks accept AD Code requests via email or their online portals, but some may require a signed physical letter. Check with your bank’s specific requirements before submission.

4. How long does it take to get the AD Code after submitting the request letter?

Ans. The processing time varies by bank but typically takes between 3 to 7 working days. It depends on verification and internal procedures at the authorized dealer’s end.