Icegate Registration and AD CODE (port registration)

What is ICEGATE Registration?

ICEGATE (Indian Customs Electronic Gateway) is the official portal of Indian Customs, which facilitates various import-export related services digitally. Registration on ICEGATE is mandatory for exporters and importers to access and perform multiple essential tasks seamlessly online.

Purpose and Importance of ICEGATE Registration

ICEGATE registration enables users to:

1. Register AD Code (Authorized Dealer code):
   

   • Required for receiving foreign payments.
   • Registration at one port reflects automatically across India.

2. Claim Export Incentives:
   

   • RoDTEP (Remission of Duties and Taxes on Exported Products) benefit.
   • Generate e-scrip electronically as an incentive for exports.

3. Transfer/Sale of RoDTEP e-Scrips:
   

   • Exporters can sell generated e-scrips to importers.

4. Tracking and Verification:
   

   • Monitor GST refund status.
   • Check Duty Drawback refund status.
   • Verify Export General Manifest (EGM) status using Shipping Bill numbers.

5. Payment of Customs Duties:
   

   • Importers can use e-scrips purchased from exporters to pay Basic Customs Duty (BCD).

Understanding AD Code and IFSC Code in Export-Import Transactions:

1. AD (Authorized Dealer) Code:

• Purpose:
  

  • Used for receiving foreign remittance (payment from overseas buyers).
  • Essential for export transactions.

• Registration Requirements:
  

  • Single Port Registration:
    You only need to register the AD Code at one port (parent port).
  • Automatic Centralized Registration:
    Once registered at any one port, it automatically reflects at all ports across India (Sea ports, Airports, ICDs, Land Customs Stations).
  • No Additional Port Registrations Required:
    Attempting to register the same AD Code at any additional port results in system rejection.

• Multiple AD Codes Allowed:
  

  • You can have multiple AD Codes linked to multiple banks. This provides flexibility to receive payments from different countries depending on which bank is operational in that country.
    For example:
  • Netherlands payment through Union Bank if HDFC doesn’t work there.

2. IFSC (Indian Financial System Code):

• Purpose:
  

  • Mandatory for claiming refunds or incentives from the Indian government, specifically:
    

    • GST refund on exports with payment of IGST.
    • Duty Drawback.

• Registration Requirements:
  

  • Port-specific Registration:
    IFSC Code must be registered separately at each individual port from where goods are exported (e.g., Nhava Sheva, Mundra, Kandla, Delhi Airport, Mumbai Airport, etc.).
  • Single IFSC per Port:
    Only one IFSC code can exist per port for refund purposes.
  • Consequence of Non-registration:
    

  • Without IFSC code registration at a port, you must file a free shipping bill (without IGST refund or duty drawback benefit).

  • Public Financial Management System (PFMS) validates bank account details (including IFSC codes) registered for receiving government payments such as:

    • GST Refund (Export with payment of IGST)

    • Duty Drawback

Practical Example:

• Exporting from Delhi Airport, Mumbai Airport, and Mumbai Nhava Sheva Port:
  

  • AD Code:
    Register once at any one port. Automatically applies across all ports.
  • IFSC Code:
    Must register separately at each port (Delhi Airport, Mumbai Airport, Nhava Sheva Port) for GST refund and duty drawback benefits.

• Payments can be segregated:
  

  • Foreign buyer payments in one bank (AD Code registered).
  • Government refunds (GST/Duty Drawback) in another bank (IFSC Code registered at specific ports).

Additional Notes for Imports:

• AD Code: Required for imports to facilitate payments abroad.
• IFSC Code: Not required as there are no refunds/incentives from the government in import transactions.
• ICEGATE Digital Signature Registration: Mandatory for importers to pay import duties electronically via ICEGATE.

Simple Analogy:

• ICEGATE User ID creation:
  Similar to creating a Facebook account.
• AD Code Registration:
  Like sending a friend request.
• AD Code Approval:
  Equivalent to friend request acceptance.
• Merely creating an ICEGATE account doesn’t imply AD code approval; explicit registration and approval is required.