Utilisation permission issuance made automated today

The National Board of Revenue (NBR) fully automated the issuance of utilisation permission (UP) from today by making the Customs Bond Management System (CBMS) mandatory for all exporters who import raw materials without paying duty.

The permission allows export-oriented businesses to import raw materials duty-free for use in producing goods for export.

Under the new system, all UP applications and approvals are now processed online through three customs bond commissionerates under the NBR, effectively ending the long-standing manual submission and approval process.

The tax administration has taken this step as part of its effort to fully automate customs bond services, aiming to improve efficiency, reduce delays, and enhance transparency in bonded warehouse operations, particularly for export-oriented industries, according to a press release.

Through the CBMS software launched on January 1, 2025, businesses can now obtain UP online from the respective bond commissionerates, in line with the approved policies of the Customs Duty Rebate and Drawback Directorate, allowing for the duty-free import of raw materials without physical interaction with customs offices.

According to the NBR, online UP issuance has eliminated the need for paper-based applications and in-person visits, significantly easing compliance for bonded warehouse users.

The system enables end-to-end online submission, verification, and approval of UP applications, reducing discretionary intervention and strengthening accountability.

The automation is also expected to make the process more cost-effective and business-friendly, while improving data management, monitoring, and audit functions.

Authorities believe it will help curb bond-related disputes and litigation.