Many first-time exporters are surprised to learn that having an IEC and GST registration still isn't enough to actually clear a shipment — customs will also ask for a registered AD Code at the specific port you're shipping from. Here's what it is and why it trips up so many new exporters.
An AD Code (Authorized Dealer Code) is a 14-digit code issued by your bank, identifying the branch that will handle your foreign exchange transactions for exports. Customs requires this code to be registered before your shipping bill can be filed — without it, your goods simply cannot be cleared for export, no matter how complete your other documentation is.
Here's the detail that catches exporters off guard: an AD Code registered at one port is not automatically valid at another. If you ship from Mumbai port one month and switch to Nhava Sheva or an airport the next, you need to register your AD Code separately at each new port through ICEGATE before you can file a shipping bill from there. Exporters who use multiple ports or freight forwarders across different cities need to plan for this in advance to avoid last-minute shipment delays.
Since this registration is port-specific, it's worth registering your AD Code at every port you're likely to use — including nearby alternatives — well before you need to actually ship, rather than discovering the gap when a shipment is already booked.
BuyGenix Solutions handles AD Code registration across every port you ship from, so customs clearance never gets held up.
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