Why IEC & AD Code Are Critical

If you’ve completed your readiness assessment and understand the import-export landscape, the next essential step is obtaining your IEC (Importer Exporter Code) and AD Code.

• IEC: Mandatory for all import-export operations in India. No IEC, no international trade.

• AD Code: Required for foreign exchange transactions through your bank, linked to your IEC.

Skipping these steps or making mistakes in application can delay shipments, cause compliance issues, and block access to government schemes. This guide walks you step-by-step through both applications, with actionable tips and official resources.

Table of Contents

1. Preparing IEC Application

2. Preparing AD CODE Application

3. Integrating IEC and AD-CODE

4. Application Checklists

Preparing for IEC Application

Before you apply, make sure you have the following:

1. PAN of the business – Required for verification.

2. Business registration proof – Partnership deed, LLP agreement, or incorporation certificate.

3. Bank account details – Current account with proof of address (bank statement or canceled cheque).

4. Digital photograph and scanned signature – Required for online submission.

Pro Tip: Keep all documents in PDF format and under 1 MB to avoid upload errors.

Applying for IEC Online

1. Visit the DGFT Portal: https://www.dgft.gov.in

2. Select IEC Application Form (ANF 2A).

3. Fill in Business Details:

   • PAN

   • Legal entity type (proprietor, partnership, LLP, Pvt Ltd, etc.)

   • Address and contact details

4. Upload Documents: PAN, business registration, bank details, digital signature.

5. Pay Fee: Currently INR 500 (online payment through net banking).

6. Submit and Receive ARN (Application Reference Number).

Tip: Track your application using the DGFT ARN portal. IEC is typically issued within 3–5 business days if documents are correct.

Common Mistakes to Avoid for IEC

• Incorrect PAN or legal entity details – Leads to application rejection.

• Non-matching bank account name – Must match IEC application.

• Uploading unclear scans – Causes delays.

• Missing digital signature – Application will not submit.

Example: A textile SME in Surat uploaded an old PAN card scan. DGFT rejected the application. Re-submission delayed their first shipment by 2 weeks. Double-check before submission.

Preparing for AD Code Application

Once you have your IEC:

1. Current Account with Authorized Dealer (Bank) – Required.

2. IEC certificate – Needed by bank to link your AD Code.

3. Import/Export purpose – Specify whether you are applying for export, import, or both.

Pro Tip: Many SMEs delay this step, but without AD Code, your bank cannot process foreign transactions, even if you have an IEC.

Applying for AD Code

1. Contact your AD Bank – Most banks have a dedicated export-import desk.

2. Provide Documents:

   • IEC certificate

   • PAN

   • Current account details

   • Letter specifying purpose of foreign trade

3. Bank Verifies and Registers AD Code: Typically issued within 2–5 days.

Tip: Some banks also offer advisory services for SMEs to link your AD Code with customs and shipping platforms. Ask proactively.

Integration Between IEC & AD Code

• AD Code is linked to IEC for all customs and bank foreign exchange transactions.

• Ensures smooth processing of:

  • Export proceeds

  • Import payments

  • Claiming government benefits like RoDTEP or Duty Drawback

Actionable Insight: Maintain a digital folder with IEC, AD Code, PAN, GST, and bank proof for quick access during customs or trade transactions.

Quick Checklist for Application

• Business PAN and registration ready

• Current account details ready

• Digital photograph & signature prepared

• IEC application submitted on DGFT portal

• IEC received and verified

• Contact AD Bank for AD Code

• AD Code registered and linked with IEC

Tip: Keep track of ARN and application reference numbers to follow up efficiently.

Common Pitfalls and Tips

1. Mismatch of business name across documents – Always ensure consistency.

2. Incomplete bank proof – Can delay AD Code registration.

3. Not consulting bank advisory – SMEs miss out on helpful customs integration tips.

4. Ignoring updates from DGFT – Check DGFT notifications periodically for any procedural changes.

Now that you have your IEC & AD Code ready, the next step is choosing the right products and markets for import-export.

Read: How to Choose the Right Products and Markets for Import-Export