The MOOWR Scheme (Manufacture and Other Operations in Warehouse Regulations, 2019) is a duty deferment scheme by CBIC (Central Board of Indirect Taxes and Customs) that allows manufacturers and importers to store goods in a bonded warehouse without paying customs duties upfront. Businesses can also manufacture goods within the warehouse and export them without paying any duty.
The key objective of the MOOWR scheme is to boost India’s manufacturing sector by reducing financial burdens and improving cash flow for businesses engaged in global trade.
Key Features & Benefits of the MOOWR Scheme
🔹 100% Duty Deferral – Importers can store raw materials in a bonded warehouse without paying Basic Customs Duty (BCD), IGST, or GST compensation cess.
🔹 Duty-Free Exports – When goods are manufactured and exported, no import duty is required to be paid.
🔹 Flexible Domestic Sales – If goods are cleared into the domestic market, duties are paid only at the time of clearance.
🔹 No Time Limit for Storage – There is no restriction on how long goods can remain in the warehouse.
🔹 No Export Obligations – Unlike schemes such as EPCG or Advance Authorization, the MOOWR scheme does not require exporters to meet strict export obligations.
🔹 No Bank Guarantee Required – Unlike other bonded warehouse schemes, there is no need to furnish a bank guarantee.
🔹 No Special License Needed – Any manufacturer, trader, or importer can easily apply and operate under the MOOWR scheme.
🔹 Simplified Compliance – MOOWR is regulated under Section 65 of the Customs Act, 1962, with minimal compliance requirements.
🔹 Improved Cash Flow & Cost Savings – Since duties are deferred until goods are cleared for domestic sale, businesses can reinvest capital in operations and expansion.
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Who is Eligible for the MOOWR Scheme?
The scheme is open to:
✅ Manufacturers – Companies looking to import raw materials, manufacture goods in India, and export duty-free.
✅ Importers – Businesses importing goods for storage before domestic sale.
✅ Traders – Companies engaged in distribution without immediate customs duty payment.
Any business can apply for MOOWR, provided they have:
✔ Registered business premises in India
✔ Appropriate warehousing space
✔ Approval from jurisdictional Customs authorities
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MOOWR vs Other Duty Exemption Schemes
| Feature | MOOWR Scheme | EPCG | Advance Authorization | SEZ |
|---|---|---|---|---|
| Duty Payment on Import | Deferred until clearance | No duty on capital goods | No duty on raw materials | No duty within SEZ |
| Export Obligation | No mandatory obligation | Yes, within 6 years | Yes, within 18 months | Yes, for SEZ units |
| Domestic Sales Allowed? | Yes, with duty payment | Yes, with duty & interest | No | No |
| Time Limit for Storage | No limit | N/A | N/A | No limit |
| License Requirement | No special license | Requires EPCG License | Requires AA License | SEZ Unit Approval |
| Ease of Compliance | Simple | High | High | High |
MOOWR offers the most flexibility and ease of operation compared to other duty exemption schemes.
Need Assistance with the MOOWR Scheme? Contact Pragati Exim Solution!
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The MOOWR Scheme eliminates duty burdens, enhances cash flow, and simplifies import-export operations. However, ensuring full compliance is essential to avoid penalties and procedural delays.
At Pragati Exim Solution, we offer:
✔ MOOWR registration & approvals
✔ Documentation & compliance management
✔ Duty deferment planning for manufacturers & importers
✔ Customs representation & dispute resolution
📞 Get in touch today for expert MOOWR consultation and hassle-free approvals!
- 01 Are there any financial guarantees required?
- No bank guarantees are needed for MOOWR operations.
- 02 How is MOOWR different from SEZs?
- MOOWR units can sell in the domestic market, while SEZs require strict export compliance.
- 03 Do I need a special license to apply for MOOWR?
- No, any registered business can apply.
- 04 Can I sell goods in India under MOOWR?
- Yes, but you must pay applicable customs duties at the time of clearance.
- 05 Is there any export obligation in MOOWR?
- No, there is no mandatory export obligation.
- 06 Is there a time limit to store goods in a bonded warehouse?
- No, goods can be stored indefinitely.
- 07 What duties are deferred under MOOWR?
- Basic Customs Duty (BCD), IGST, and GST Compensation Cess.
- 08 Do I need to be an exporter to benefit from MOOWR?
- No, businesses can use MOOWR for both exports and domestic sales.
- 09 Who can apply for the MOOWR Scheme?
- Any manufacturer, importer, or trader operating in India.
- 10 What is the MOOWR Scheme?
- It allows businesses to defer customs duties on imports while enabling duty-free manufacturing for exports.
- 11 How can Pragati Exim Solution help with MOOWR compliance?
- We assist with MOOWR registration, compliance management, duty deferment structuring, and Customs approvals.
- 12 Is the MOOWR scheme available for service providers?
- No, MOOWR applies only to physical goods manufacturing & trading.
- 13 How long does it take to get MOOWR approval?
- Approximately 2-4 weeks after application submission.
- 14 Can I claim an IGST refund under MOOWR?
- No, IGST exemption applies at the time of import, so no refund is available.
- 15 Can I import capital goods under MOOWR?
- Yes, both capital goods and raw materials can be imported.