Introduction to MOOWR Scheme
The MOOWR Scheme (Manufacture and Other Operations in Warehouse Regulations, 2019) is a game-changing initiative by the Government of India under the Customs Act, 1962. This scheme allows manufacturers to import goods without upfront payment of customs duty, enabling duty deferment and increased liquidity—a boon for companies looking to improve their working capital and scale up operations.
What is the MOOWR Scheme?
Launched by the Central Board of Indirect Taxes and Customs (CBIC), replaced Customs Bonded Warehouse regulations and streamlined the process and compliances The MOOWR Scheme permits businesses to carry out manufacturing and other operations in a bonded warehouse. It allows both Indian and foreign entities to import capital goods and raw materials duty-free, with duties payable only at the time of clearance for home consumption.
Key Features of MOOWR Scheme
✅ No import duty on capital goods and inputs
✅ No export obligation – suitable for both DTA and export units
✅ No time limit on warehousing
✅ Simplified compliance and self-regulation
✅ Goods can be cleared for home use or export anytime
✅ Interest-free deferment of IGST and BCD
Who Can Avail MOOWR Scheme?
This scheme is open to all manufacturers, whether in the DTA (Domestic Tariff Area) or SEZs, EOU, and even importers looking to set up a warehouse for inward processing.
Eligible Entities:
- Manufacturing companies (including MSMEs)
- Importers with warehousing facilities
- Contract manufacturers
- Trading companies involved in high-value imports and re-exports
MOOWR Scheme vs. Other Export Promotion Schemes
| Feature | MOOWR Scheme | Advance Authorisation/ EPCG |
| Export Obligation | Not required | Condition of Value Addition or Specific on the basis of Duty Saved Amount |
| Duty on Raw Material | Exempt/ Deferred (no interest) | Exempt (with export conditions) |
| Duty on Capital Goods | Exempt/ Deferred (no interest) | Exempt (with export conditions) |
| Domestic Sales Allowed? | Yes (with duty payment) | Limited / regulated |
| Tenure Limit | No limit | Yes (e.g., 6 years for EPCG) |
| Easy Exit Option | Yes | No |
Benefits of MOOWR Scheme for Indian Industry
Implementing the MOOWR scheme in your supply chain offers the following strategic advantages:
1. Improved Cash Flow
- Deferment of customs duties means working capital remains intact.
2. No Export Obligation
- Ideal for businesses catering primarily to domestic markets.
3. Boosts ‘Make in India’
- Encourages setting up of manufacturing units in India.
4. Simple Procedure
- Online filing, minimal documentation, and quick approval from Jurisdictional Customs Commissioner.
5. Flexibility
- Capital goods and raw materials can be kept in the bonded warehouse as long as needed.
We specialize in MOOWR Scheme advisory and compliance with a proven track record of helping Indian and MNC clients unlock the scheme’s full benefits. Our services include:
- Feasibility assessment
- Application filing & documentation
- End-to-end implementation
- Ongoing compliance support
FAQs on MOOWR Scheme
Q1: Is there any minimum investment limit under MOOWR?
👉 No, there is no such threshold. Both small and large companies can apply.
Q2: Is IGST also deferred under MOOWR?
👉 Yes, IGST is deferred and payable only upon clearance for home consumption.
Q3: Can service providers avail MOOWR?
👉 No, only manufacturers and warehousing entities are eligible under current regulations.
