MOOWR Scheme- Manufacturing and Other Operations Warehouse

The Government, in an initiative to encourage local manufacturing and to align with the ‘Atmanirbhar Bharat’ plan, has revamped the earlier ‘Manufacturing & Other operation in Warehouse Regulation’ (MOOWR) scheme, which was first introduced in 1966 under the Customs law. MOOWR allowed the owner of the warehoused goods to carry on manufacturing

processes or other operations in such a warehouse, subject to specific conditions. The said scheme has been given a fresh impetus by liberalising certain key compliance requirements in the revised MOOWR, notified on 1 October 2019. 


 What's the Scheme- When the raw materials or capital goods are imported, the import duty on them is deferred. If these imported inputs are utilised for exports, the deferred duty is also exempted. Only when the finished goods are cleared to the domestic market, import duty is required to be paid on the imported raw materials used in the production, without payment of any interest. Import duty on capital goods is required to be paid when such capital goods are cleared to the domestic market, again without payment of any interest and no time bondage. 


















Our Expertise and Role - End to End Process is done by our team.


 Scope of Work in detail as below:-

  1. Collection / Processing / Tabulation of relevant detail / information / documents.  

  2. Preparation and filing of applications /forms / representations before the concerned authority. 

  3. Follow up with the concerned authority for grant of License.  

  4. Maintain accounts of receipts and removal of goods from warehouse on monthly basis

  5.  Monthly compliance and audits, along with visits to customs office whenever required.

 Benefits of Moowr:- 


  • Deferred Duty on Import of Raw Material: The duty on import of raw material used in manufacturing or other operations is deferred until the clearance of finished Goods,. It will be waived

  • off, in the event finished goods are exported.

  • Deferred Duty on Capital Goods: The duty on capital goods used in manufacturing or other operations, is deferred until the clearance from a bonded facility, and can be avoided if they are exported. 

  • No Interest Liability on imported raw materials : For home/ domestic consumption, Customs Duty and IGST needs to be paid on imported raw materials at the time of removal from the

  • factory i.e. bonded area without paying any interest. 

  • More Liquidity : This scheme helps importers retain cash flow as goods can be kept in warehouses bereft of any time limit and duty is to be paid only when the goods are cleared for domestic sale. The customs duty and Igst is payable without interest as per usage of raw materials used in finished goods for domestic sale, and not on the entire lot of raw materials imported at once. 

  • Positive NFE need not be maintained: On top of that, the revised scheme does away with the requirement of maintaining positive NFE (Net Foreign Exchange Earnings) 

  • Permanent License Validity: License once obtained is valid for permanence unless cancelled. No hassles of periodic renewals. 

  • No interest upon removal of Capital goods: After unlimited use there is no Interest upon removal of Capital Goods itself for the home consumption. All that is required is for one to pay the Customs Duty and IGST on the Capital goods.   

  • No time limit for goods within warehouse: In case of manufacturing, no interest implication and the imported inputs / capital goods can remain in the warehouse without any time limit . 

  • No Export Obligation: An entity may sell 100% of the goods manufactured in the bonded Warehouse into the domestic market. However, this will be followed by the liability to pay duty on imported inputs.

  • Seamless transfer between Warehouses: A licensee shall transfer warehoused goods from one bonded facility to another without payment of duty. The liability to pay deferred duty is also transferred to the owner of the new facility with the transfer of goods.

  • Appointment of warehouse keeper: The responsibility of the proper customs or government officer to oversee the operations of a warehouse, has been shifted to a self-appointed warehouse keeper.

  • No geographical restriction: New manufacturing facility can be set up or an existing facility can be converted into a bonded manufacturing facility irrespective of its location in India

  • No duties for Traders: A trader can import finished goods without paying customs duty + IGST and can get waver from customs duty + IGST when these goods are exported. No Interest and Time bondage. 

 Clearance of Warehouse Goods 

 The scheme promotes a seamless transfer of goods between warehouses. 

  • Transfer of goods from a warehouse: As per the scheme, a licensee shall allow transfer of warehoused goods to another warehouse or to a customs station for export, with due intimation to the bond officer on the Form for transfer of goods from a warehouse. 

  • Removal of resultant goods for home consumption: A licensee may remove the resultant goods from warehouse for home consumption: Provided that a bill of entry for home consumption has been filed in respect of the warehoused goods contained in so much of the resultant goods and the import duty, interest, fine and penalties payable, if any, in respect of such goods have been paid. 

  • Removal of resultant goods for export: A licensee shall remove the resultant goods from the warehouse for export without payment of duties or under IGST refund, upon filing a shipping bill or a bill of export, as the case may be, notes the scheme. 


 Eligibility to obtain a licence under MOOWR

  • A person/ company who has been granted a licence for a warehouse under section 58 of the Customs Act, in accordance with Private Warehouse Licensing Regulations, 2016.

  • A person/company who applies for a licence for a warehouse under section 58 of the Customs Act, along with permission for undertaking manufacturing or other operations in the warehouse under section 65 of the said Act.


 Conclusion - The MOOWR scheme not only extends the benefits in the form of cost reduction of customs duty/ IGST but also provides the working capital boost by deferring the duty liability without any interest liability.

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