If you’re planning to start an import-export business, it’s crucial to understand that AD Code registration is one of the most important steps. Without it, foreign currency transactions won’t be allowed.
However, many business owners make small but costly mistakes during this process, especially when they try to handle it themselves. These errors can lead to rejections or even penalties.
In this blog, we’ll discuss the most common mistakes to avoid during AD Code registration.
Table of Contents
Common Mistakes to Avoid During AD Code Registration
Avoiding common errors is the key to quicker approval, whether you apply for AD code registration online or offline
1) Entering Incorrect IEC Details
Your AD Code application’s information must precisely match your Import Export Code and the person or address linked to it. A mismatch can result in rejection.
Tip: Avoid typos by copying the information using your IEC certificate.
2) Choosing the Wrong Port Location
The AD Code must be registered for each port. Many people apply with the incorrect port by mistake or neglect to register their AD Code with every port they use.
Tip: Make a list of all the ports you’ll be exporting or importing from, and apply AD Code registration accordingly.
3) Mistakes or Incomplete Bank Letter
Banks provide your AD Code in a letter on their letterhead. Customs will reject your application if this letter is not formatted correctly or has errors such as an inaccurate branch address or code.
Tip: Ask your bank for an AD Code letter in the customs-approved format.
4) Applying Without Active IEC
While their IEC is pending or inactive, some people attempt to register their AD Code. If your IEC isn’t active and legitimate, Customs won’t process your AD Code.
Tip: Check IEC status on the DGFT portal before applying.
5) Not Using the Correct Bank Account
Your AD Code must be linked to your current business account, not a savings account or personal account. Using the wrong bank account type may lead to rejection.
Tip: Open a new business account for your import and export business before applying.
6) Missing or Delayed Registration on ICEGATE
It needs to be registered on the ICEGATE site after obtaining the AD Code from the bank. Because some people believe the bank takes care of everything and neglect to complete this step.
Tip: Register your AD Code on ICEGATE immediately after receiving the bank letter.
7) Not Verifying GSTIN Linked Details
If your business is GST-registered, your IEC, PAN, and GSTIN must all be linked and reflect the same business address. If there’s a mismatch, customs may reject the AD Code registration.
Tip: Keep your GST portal and DGFT records updated.
8) Skipping Professional Help
Trying to handle everything on your own without understanding the process can lead to delays and rework. If you’re unsure, taking expert help can save time.
Tip: Consult a professional or service provider who offers AD Code registration online support.
9) Ignoring Status Updates
Once you’ve applied, it’s important to track your AD Code registration status. Many people apply and forget to follow up, which leads to missed deadlines or expiry of customs credentials.
Tip: Keep checking the status on the ICEGATE portal and set reminders.
Conclusion
AD Code registration is mandatory for every exporter or importer, and avoiding the above mistakes can save you time, effort, money, and stress.
If you make sure all your documents are correct, your details match, and you choose the right ports, the registration process becomes smooth. You can also hire reliable agencies that offer AD Code registration online services and handle the paperwork for you. You can book a call with a professional with E-startupIndia to get your AD code registration online without any hassles. Our team has helped 2000+ clients with all their business needs.
FAQs
What is Error Code 108 for AD Code Registration?
ICEGATE Customs says that error 108 on AD code registration means that wrong or mismatched information was uploaded during the registration process on the ICEGATE portal.
What is AD Code registration?
It’s the process of registering a 14-digit code from your bank with customs to allow international trade.
What is Ad Code Error 110?
Error 110 means that IEC is already registered with some other site
Is DSC Mandatory for Ad Code Registration?
No, DSC is not mandatory for AD Code registration on the ICEGATE portal, as you can log in with your IEC code.
How long does AD Code Registration Take?
It usually takes 2–5 working days if all documents are correct.
Is online AD Code Registration Possible?
Yes, you can register online on the ICEGATE portal or seek professional assistance.
Do I need GST for AD Code Registration?
It’s not mandatory, but it helps match business identity.
What Documents are Needed for the AD Code?
- AD Code letter from the bank (on letterhead, signed, with port details)
- IEC certificate copy
- Business address proof (like GST certificate)
- Authorisation letter (if applying through an agent)
- Cancelled cheque (optional but helpful)
Can a CA help with AD Code registration Online?
Yes, chartered accountants can help you register faster and error-free. The team at E-Startup India includes experienced CAs who can guide you through the AD Code registration process