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MOOWR

Duty-Free Import of Capital Goods

India allows manufacturing and other operations in a bonded manufacturing facility to promote India as the manufacturing hub globally and the commitment towards ease of doing business, under Section 65 of the Customs Act, 1962 (hereinafter referred to as, “the Customs Act”) provides for manufacturing as well as carrying out other operations in a bonded warehouse. The Board has prescribed “Manufacture and Other Operations (MOOWR)”.

Central Board of Indirect Taxes (CBIC) is allowing import of raw materials and capital goods without payment of duty for manufacturing and other operations in a bonded manufacturing facility.

Most promising feature of the scheme is that unlike various existing schemes, the MOOWR scheme is delinked to the quantum / obligation of exports and the benefit is also extended to the importers who import the goods for domestic clearance / sell.

Advantages of MOOWR Scheme

  • Import material to factory and carry out the manufacturing or processing using these raw materials or Capital Goods.
  • For home consumption, Customs Duty and IGST needs to be paid at the time of removal from the factory i.e. bonded area – Deferral in payment of duty.
  • No need to maintain positive NFE (Net Foreign Exchange Earnings)
  • License once obtained is valid for permanence unless cancelled. No hassles of periodic renewals.
  • No duty upon export, the manufactured goods or processed goods, the corresponding BCD+IGST waived.
  • This Scheme is Applicable for new and second hand goods
  • In case of manufacturing, no interest implication and the imported inputs / capital goods can remain in the warehouse without any time limit – Working capital savings.

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The MOOWR Scheme (Manufacturing and Other Operations Under Warehouse Regulations, 2019) is a powerful government initiative that allows businesses to import capital goods and raw materials without paying customs duty or IGST upfront—duty is deferred and waived entirely if goods are exported. This improves cash flow, reduces production costs, and offers greater flexibility with no export obligation or warehousing time limits.

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