In a significant trade facilitation measure, the Central Board of Indirect Taxes and Customs (CBIC) has further streamlined the process of AD Code and IFSC registration for exporters’ incentive bank accounts. This initiative aims to enhance the ease of doing business, improve efficiency, and deliver a smoother customs experience for the trade community.
Background
As per Instruction No. 25/2023-Customs dated 28th July 2023, CBIC had earlier prescribed the list of documentary requirements and defined clear timelines for the approval of AD Code and IFSC registration for incentive bank accounts at ports. Exporters can register their incentive bank accounts on the ICEGATE portal for every port where they intend to transact for IGST refund or drawback purposes.
The instruction also directed that applications submitted before 2 PM must be processed on the same day, while those received after 2 PM should be disposed of by 2 PM on the next working day.
New System Enhancement
After reviewing IFSC code approval requests across different ports and in consultation with the Directorate General of Systems, CBIC has decided to introduce automatic approval for certain cases.
Key Feature:
The system will now automatically approve requests for registration of the same incentive bank account and IFSC code linked to an Importer Exporter Code (IEC) across multiple customs locations — provided the same combination has already been approved once at any port.
- The existing submission workflow remains unchanged.
- In such cases, system-based approval will replace manual approval by the port officer.
- Once approved, the request will automatically flow to the Public Financial Management System (PFMS) for validation, as per the current process.
Objective and Impact
This automation initiative is designed to:
- Reduce duplication of verification efforts at multiple ports.
- Shorten processing time for exporters.
- Ensure consistency and uniformity in approvals.
- Strengthen the efficiency and transparency of customs procedures.
- Enhance the overall trade facilitation experience for exporters and businesses.
Redressal
CBIC has also invited stakeholders to bring any difficulties or technical issues to the notice of the Board for timely redressal.
Conclusion
The auto-approval of bank account and IFSC registration marks another proactive step by CBIC towards digitization and simplification of customs processes. By leveraging system-driven automation, the Board continues to make India’s trade ecosystem more efficient, transparent, and exporter-friendly.
Notification Reference: Customs
Circular No 24/2025-Customs
07 /10 /2025