The National Board of Revenue (NBR) has fully automated the issuance of utilisation permits (UPs) for export-oriented companies by mandating the use of the Customs Bond Management System (CBMS) for all exporters importing raw materials without paying duty.
Under the system, exporters authorised to import raw materials duty-free for use in export production can now obtain utilisation permits entirely online. The move effectively eliminates the long-standing manual submission and approval process, with all UP applications and approvals now being processed electronically through the NBR’s three customs bond commissionerates.
In a press release, the tax authority said the step forms part of its broader push to fully automate customs bond services, with the objective of improving efficiency, reducing delays and enhancing transparency in bonded warehouse operations, particularly for export-focused enterprises.
In line with policies approved by the Customs Duty Rebate and Drawback Directorate, businesses are now able to apply for and receive utilisation permits online from the relevant bond commissionerates via the CBMS software, which was rolled out on 1 January 2025. The system enables duty-free imports of raw materials without the need for physical interaction with customs offices.
According to the NBR, the shift to online UP issuance has significantly simplified compliance for bonded warehouse users by removing paper-based applications and in-person visits. The fully digital process allows for online submission, verification and approval of applications, reducing discretionary intervention and strengthening accountability.
The automation is also expected to enhance data management, monitoring and audit capabilities, while making the system more cost-effective and business-friendly. Officials believe the move will help reduce disputes, litigation and operational issues related to bonded warehouse bonds.
