The Indian export side: AD code, GST LUT, FEMA Form A2 explained

For most Indian families and businesses, the export-side paperwork of an international move sits behind a curtain. The forwarder handles it, the customs broker signs it, and a sequence of acronyms passes through the consignment file. That is fine when everything works; it becomes expensive when something does not.

Below are the three acronyms that anchor every legitimate Indian export — the AD code, the GST LUT and the FEMA Form A2 — explained in plain language.

AD code: the bank’s authorisation, the customs system’s key

The Authorised Dealer Code is a fourteen-digit identifier issued by an Authorised Dealer (AD) Category-I bank — in practice, any major scheduled commercial bank with a foreign exchange licence. The AD code links a specific bank branch to a specific exporter, which is how the customs system knows where to route inward remittances when the foreign buyer eventually pays.

For commercial exports, the AD code must be registered with the customs system at every port from which the exporter intends to ship. Registration is one-time per port, and the document trail is straightforward: a request letter, IEC (Importer Exporter Code) certificate, GST certificate, PAN, the bank’s AD code letter, and proof of the company’s identity. The CHA at the relevant port files the registration on ICEGATE.

For personal-effects moves, the AD code is less relevant in practice — Used Personal Effects (UPE) do not generate an inward foreign remittance — but the customs system still expects an AD code linkage on the Shipping Bill. The conventional approach is to use the personal account’s AD code, with the bank registering it as a one-off. Our coordinators handle this for every personal move.

GST LUT: the duty waiver that makes exports work

The Letter of Undertaking under Goods and Services Tax is the document by which an exporter declares, to the GST authority, that they will export goods or services without paying the integrated GST (IGST) up front. The alternative — paying IGST on export and then claiming a refund — is procedurally cumbersome and ties up working capital, and almost no commercial exporter uses it.

The LUT itself is filed online through the GST portal once a financial year, valid until the end of that financial year, renewable in the same window the following April. The conditions are straightforward: the exporter must be GST-registered and must furnish the LUT in the prescribed Form GST RFD-11.

For SMEs that have not exported before, the LUT filing is the right first step before any commercial shipment is despatched. We have seen exporters lose three weeks because they discovered, on the day of shipment, that no current-year LUT was on file. The LUT takes hours to file; it’s the discovery-on-the-day that hurts.

For personal-effects moves, the LUT is not required — household goods are not a GST-rated supply. Our paperwork explicitly cites the personal-effects nature of the consignment and the relevant exemption notification.

FEMA Form A2: the foreign-exchange remittance trail

The Foreign Exchange Management Act, 1999 governs every cross-border money movement involving an Indian resident. Form A2 is the standard application made by a remitter to an Authorised Dealer bank when remitting foreign exchange out of India for any purpose covered by the Liberalised Remittance Scheme (LRS) or the equivalent corporate channels.

For an export move, Form A2 most often appears in two scenarios. The first is when the family is settling destination-end charges in foreign currency from India before the consignment leaves — for instance, prepaying the destination customs broker. The second is when an NRI is sending funds home for any aspect of the move and needs to demonstrate the source.

The LRS limit for resident individuals in 2026 stands at USD 250,000 per financial year, covering most personal cross-border transactions including overseas property purchase, education, medical expenses and gifts. Most personal moves do not approach this limit on the move-related remittances alone, but families combining the move with other LRS-using activity in the same financial year should keep a running total.

Form A2 itself is filed at the remitter’s bank, accompanied by the supporting documents. The bank verifies the LRS aggregate, debits the rupee account, and remits the foreign currency. From start to finish this is typically a same-day or next-day transaction with a co-operative bank.

How the three fit together in a single export filing

For a commercial export of household goods or office equipment from India, the timeline looks roughly like this:

• Three months out: Confirm IEC is current, GST LUT is filed for the current financial year, bank AD code is registered at the intended port of despatch.
• Two weeks out: CHA prepares the Shipping Bill on ICEGATE, referencing the IEC, AD code, GST LUT, and the consignment’s HS classification.
• One week out: The consignment is loaded into the container at the origin warehouse, the export Bill of Lading is drawn, the Customs assessment is completed and the “Let Export Order” is issued on ICEGATE.
• On dispatch: If any foreign-currency remittances are needed for destination-side charges, Form A2 is filed at the exporter’s bank.
• Post-dispatch: The Export General Manifest (EGM) is filed by the shipping line, completing the export cycle on the Indian side.

For a personal move, the steps are similar but compressed — no LUT, simplified AD code, no commercial invoice. The customs filing uses the UPE category and Form A2 only appears if foreign-currency payments are being made from India.

The questions to ask your forwarder

If you are reviewing a forwarder’s scope of services and want to know whether they are competent on the Indian export side, four questions usually surface the truth:

• Will you file the Shipping Bill under my IEC or under your IEC?
• Is the AD code registered at the port we are using, or do we need to register it as part of this engagement?
• Will the LUT requirement apply to this move, and if so is one in force for the current financial year?
• What is the contingency plan if the EGM is delayed and the export cycle does not close on time?

Any forwarder who answers all four cleanly is competent on the basics. Any who hesitates on the EGM question is probably not the right partner for a complex move. We are happy to be the second opinion on a quote you have already received.