No E-Monitoring, No Removal of Goods from Factory

FBR has directed Inland Revenue field formations to stop the removal of excisable goods and finished products from factories where the prescribed electronic monitoring system has not been installed. The measure follows amendments to the Federal Excise Act, 2005, expanding the scope of enforcement relating to production monitoring.

Under the amended framework, goods removed without the required electronic monitoring may be liable to seizure, along with the vehicle or conveyance used for their transportation. The change significantly increases the compliance exposure of manufacturers because non-integration is no longer merely a documentation issue—it can directly affect movement of goods from the manufacturing premises. FBR has also expanded invoicing requirements, requiring registered persons to issue invoices for exempt supplies and advance receipts with a verifiable and unique FBR invoice number. The overall direction is clear: production, invoicing and movement of goods are increasingly being linked through digital monitoring, making system integration an important operational requirement for manufacturers.