AD Code vs IEC: What’s the Difference & Why You Need Both for Exporting from India

Exporting for the first time? You’ve probably heard the terms AD Code and IEC code thrown around—but what do they actually mean, and why are both critical for your first shipment? If you’re navigating export documentation in India, these two codes stand out as essential. This guide breaks it down clearly so you know exactly what they are and how to get them before your goods leave the country.

AD Code vs IEC Code: A Quick Comparison

To start, let’s clarify the basics of each. An IEC (Importer Exporter Code) is a unique 10-digit number issued by India’s DGFT (Directorate General of Foreign Trade) that identifies you as an importer/exporter. An AD Code (Authorised Dealer Code) is a 14-digit number issued by your bank (an authorized dealer in foreign exchange) and is a fundamental requirement for clearing exports through customs. In other words, the IEC gives your business a legal identity in international trade, while the AD Code links your shipments to a bank authorized to deal with foreign currency. Here’s a side-by-side look at their differences:

Why You Need Both IEC and AD Code ?

Think of the IEC and AD Code as two halves of the export compliance puzzle – you need both to legally and smoothly export from India. Here’s why each is indispensable:

IEC Code – Your Business’s Export Identity

The IEC is essentially your business’s passport for international trade. It’s mandatory for anyone looking to import or export — without an IEC, you simply cannot ship commercial goods in or out of India. Once issued, this code stays with your business for life, enabling you to open foreign bank accounts, register on export portals, and claim export incentives.

AD Code – Linking Exports to Your Bank

If IEC is your identity, the AD Code is your anchor at the port. This code links your shipment and customs documentation to a specific bank branch. Without an AD Code registered at the port, you cannot get a Shipping Bill issued on ICEGATE – and without a Shipping Bill, your goods can’t clear customs. The AD Code also ensures foreign currency earnings are routed to the correct bank account and unlocks duty drawback or GST refunds. It connects the financial side of your shipment to your compliance paperwork.

First-Time Exporter Scenario: Using IEC and AD Code in Practice

To see how these work together, let’s walk through a real-world example. Meet Rohit, a first-time exporter in Mumbai who’s planning to ship handcrafted textiles to Europe:

• Obtaining the IEC: Rohit applies for his Importer Exporter Code through the DGFT online portal. The process is straightforward – he fills out his business and bank details, uploads required documents (PAN, identity proof, etc.), pays a small fee, and within a few days receives his 10-digit IEC. Now his business is officially registered to export (and import) goods.
• Getting the AD Code: Rohit visits his bank and obtains a 14-digit AD Code letter to link his account with customs.
• Registering on ICEGATE: Rohit uploads the AD Code letter and IEC to ICEGATE and gets approval for port use (e.g., Nhava Sheva).
• Preparing Shipment: Now Rohit has both an IEC and a registered AD Code. He prepares his shipping documents – including the Shipping Bill (which he can generate now that his AD Code is active in the system), commercial invoice, packing list, etc. With paperwork in order, he can go ahead and book space on a vessel to Europe. At the port, customs will verify his IEC and see that his AD Code is on file, then clear the goods for export. The foreign buyer’s payment, when it comes, will be routed to Rohit’s bank (thanks to the AD Code linking that transaction).

Already Have Your IEC & AD Code? Here’s What’s Next

Now that your compliance paperwork is sorted, you can focus on the logistics. This is where a digital platform like Cogoport’s OS Planning becomes your best friend. With your IEC and AD Code in place, you’re ready to plan the actual shipment details. Cogoport’s OS Planning tool (shown above) lets you input your origin and destination ports, choose your container type and shipping mode, and instantly view available routes with cost breakdowns and transit times. In just a few clicks, you can compare freight rates, schedules, and even see applicable surcharges or local fees upfront – taking the guesswork out of your shipping plan.

How Cogoport OS Planning Helps After You Have IEC & AD Code

• Simulate and Compare Routes: Enter your origin and destination, view multiple options, and compare schedules and costs.
• Instant Cost Breakdown: See local charges, detention & demurrage, and more in one detailed quote.
• Optimize Containers: Plan Shipping scenarios for different container sizes confidently.
• Schedule Visibility: View real-time schedules across carriers without jumping between websites.

Start your 10-day free OS Planning trial and plan your first international shipment step by step with confidence.