All bonded warehouse licence holders will have to use the Customs Bond Management System (CMBS) for utilisation permission (UP) services from 1 January 2026, ending the option of taking UP manually.
The National Board of Revenue (NBR) on Monday announced the decision in a circular issued on 1 December, saying no UP-related service will be provided outside the CBMS platform after that date.
NBR introduced the automated Customs Bond Management System on 1 January 2025 to make bond management more modern, transparent and technology-driven.
At present, three customs bond Commissionerate provide online services to bonded warehouses through 24 modules of the system.
Export-oriented bonded warehouses import raw materials duty-free based on utilisation coefficients approved by the Duty Exemption and Drawback Office, and obtain Utilisation Permission from the respective customs bond Commissionerate.
Although the UP module in CBMS has been active, most bonded units have continued to collect UP using manual paperwork, with only a small number shifting to the online system.
NBR said use of CBMS has not reached the expected level even after 11 months because it was not compulsory. The system has since been upgraded and fine-tuned based on feedback from users to make it more stable and easier to operate.
Under the new decision, all applications and approvals related to UP issuance for bonded warehouse licence holders must be processed through CBMS from 1 January 2026.
The circular makes it clear that bonded units will not receive any UP-related service through any channel other than the software after that date.
According to NBR, mandatory use of CBMS will speed up service delivery, reduce physical contact and bring greater transparency and accountability into bond operations.
Bonded warehouses will be able to submit information and track approvals online, cutting both time and costs tied to visits and paperwork.
Automated recording of input and output data inside the software is expected to improve record-keeping and reduce scope for errors or manipulation. The revenue authority also expects the move to remove the hassle of submitting documents manually at bond Commissionerate and to bring down the number of bond-related disputes.
NBR said making CBMS compulsory in bond management is another step in its drive to digitalise revenue services, create a more investment-friendly environment and gradually bring all revenue-related processes under full automation.
