MOOWR Scheme Advisory

Advisory and implementation support under the MOOWR scheme to optimize duty deferment benefits for manufacturing units importing raw materials and capital goods.

Import of Raw Material / Components under MOOWR Scheme

The Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme allows manufacturers to import raw materials, components, and capital goods without upfront payment of customs duties by operating within a bonded warehouse.

Regulatory Framework

• Authority: Central Board of Indirect Taxes & Customs (CBIC) under Section 65 of the Customs Act, 1962.
• Scheme Objective: Allows duty-free import of raw materials, components, and capital goods into a bonded warehouse for manufacturing operations.
• Key Feature: No export obligation. Unlike Advance Authorisation or EPCG schemes, MOOWR permits manufacture for both export and domestic sale, subject to deferred duty payment.

Procedure

1. Apply for MOOWR Licence

• File application with the jurisdictional Customs Commissionerate.
• Seek permission to operate a Private Bonded Warehouse with manufacturing licence.

2. Approval & Bond Execution

• Execute a bond with Customs for duty deferment.
• Appoint a Bond Officer for supervision and regulatory compliance.

3. Import of Raw Material / Components

• Import raw materials or components into the bonded warehouse without upfront payment of Basic Customs Duty (BCD) and IGST.
• Duties are deferred until the goods are cleared into the Domestic Tariff Area (DTA).

4. Manufacturing Operations

• Manufacture finished goods inside the bonded warehouse.
• Maintain records of input-output ratio, wastage, and finished goods inventory.

5. Clearance

• For Exports: No customs duty payable on imported inputs used in exported goods.
• For Domestic Sale (DTA): Pay applicable Basic Customs Duty (BCD) and IGST only on the imported raw materials or components cleared into DTA.