MOOWR Scheme in India – Complete Guide, Benefits & Registration Process
Manufacture & Other Operations in Warehouse (MOOWR) – Section 65 of Customs Act
MOOWR – Manufacture and Other Operations in Warehouse is a Duty Deferment scheme launched by Central Board of Indirect Taxes and Customs under Section 65 of the Customs Act, 1962. The Scheme had been amended to simplify the Compliance by issue of Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 and Circular 34/2019 both dated 01-10-2019.
It allows manufacturers in India to:
✔ Import capital goods without paying customs duty
✔ Import raw materials without upfront duty
✔ Defer BCD and IGST until domestic clearance
✔ Operate without export obligation
✔ Enjoy unlimited warehousing period
If you are planning to import machinery or raw materials, MOOWR can significantly improve your working capital and reduce financial burden.
What is MOOWR Scheme?
MOOWR (Manufacture and Other Operations in Warehouse Regulations, 2019) is a customs framework under Section 65 of the Customs Act, 1962 that allows eligible businesses to undertake manufacturing or other permitted operations in a bonded warehouse. Its major commercial feature is deferment of applicable customs duty on eligible imported goods while they remain under the bonded framework. MOOWR is not based on a mandatory export obligation, giving eligible manufacturers flexibility to serve domestic and export markets subject to Customs requirements
Under MOOWR:
No Basic Customs Duty (BCD) is paid at import stage
No IGST is paid upfront
Duty is payable only when goods are cleared for domestic market
No duty is payable if goods are exported
This makes MOOWR one of the most flexible import duty saving schemes in India.
Why MOOWR Scheme is Better Than EPCG for Many Businesses?
Unlike EPCG:
❌ No export obligation
❌ No minimum export turnover requirement
❌ No average export condition
✔ Suitable even for 100% domestic manufacturers
If your business mainly sells in India, MOOWR is often more beneficial than EPCG.
Key Benefits of MOOWR Scheme in India
1. Customs Duty Deferment
One of the biggest advantages of MOOWR is the deferment of customs duty payments. Businesses can utilize their funds for expansion, production, and operational requirements instead of blocking capital in upfront duty payments.
2. No Export Obligation
Unlike several export promotion schemes, MOOWR does not impose export obligations. Businesses can enjoy the scheme’s benefits regardless of whether they export their products or sell them in the domestic market.
3. Improved Cash Flow
By postponing customs duty payments, companies can maintain healthier cash flow and allocate resources more effectively toward business growth and operational improvements.
4. Lower Manufacturing Costs
The scheme helps reduce the immediate financial burden associated with importing raw materials and machinery. This can lower overall manufacturing costs and improve profitability.
5. Enhanced Competitiveness
Cost savings and better cash flow management enable businesses to offer competitive pricing and strengthen their position in domestic as well as international markets.
Who is Eligible for MOOWR Scheme?
Any:
Proprietorship
Partnership Firm
Private Limited Company
Public Limited Company
Engaged in manufacturing or processing activities in India can apply.
There is:
No minimum investment requirement No turnover condition No export commitment
Documents Required for MOOWR License
IEC Certificate
GST Registration
Company Incorporation Documents
Factory License
Layout Plan
Manufacturing Process Note
List of Capital Goods
MOOWR Compliance Requirements
After registration, businesses must:
Maintain digital inventory records
File monthly & annual returns
Allow customs audit if required
Pay duty at time of domestic clearance
Proper compliance ensures smooth operations without penalties.
Looking for a MOOWR Consultant for your manufacturing unit?
Dhruva Services provides assistance for MOOWR Scheme Consultant, MOOWR Registration, MOOWR License and MOOWR Compliance requirements across Gujarat, Maharashtra, Rajasthan and Pan India.
Bhupendra Purohit
Proprietor – Dhruva Services
Call/WhatsApp: +91-7405910069
Email: dhruvaserv@gmail.com