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MOOWR

Duty-Free Import of Capital Goods

Explore Moowr Scheme Details like License, Notification, Application Process

MOOWR Details

The MOOWR Scheme is a flagship initiative introduced by the Government of India to promote domestic manufacturing and exports by reducing operational costs and improving ease of doing business. With simplified compliance, tax deferment benefits, and long-term operational flexibility, the scheme has gained significant attention among manufacturers, exporters, and industrial units.

This guide by Accurate Consultants provides a complete overview of the MOOWR scheme, including license, scheme notification, full form, scheme application process, and scheme benefits, explained in a clear and structured manner.

What is MOOWR Scheme? (MOOWR Full Form)​

The full form is Manufacture and Other Operations in Warehouse Regulations. The scheme was introduced under Section 65 of the Customs Act, 1962, and formally notified through Scheme Notification No. 65/2019-Customs dated 01 October 2019.

This scheme allows manufacturers to set up bonded warehouses where they can import raw materials and capital goods without upfront payment of customs duty, enabling significant cash-flow advantages.

Scheme Advantages

 

  • 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.

MOOWR Scheme Notification 2019 – Key Highlights

The scheme notification 2019 marked a major reform in India’s manufacturing and warehousing ecosystem. Some key highlights include:

  • Permission to undertake manufacturing and other operations in a bonded warehouse

  • No minimum export obligation

  • Deferred payment of customs duty on imports

  • Simplified compliance and record-keeping

  • No fixed time limit for warehousing of goods

This notification made the MOOWR scheme industry-agnostic, benefiting sectors such as engineering, pharmaceuticals, electronics, chemicals, textiles, and more.

What is a MOOWR License?

A MOOWR license is a mandatory approval granted by customs authorities to operate a bonded warehouse under the MOOWR scheme. This license allows businesses to legally import, store, manufacture, and process goods within the bonded premises.

The license is issued after verification of infrastructure, security arrangements, and compliance readiness of the applicant.

Eligibility Criteria for MOOWR Scheme

Businesses eligible for the scheme include:

  • Manufacturers engaged in production or processing

  • Export-oriented units and domestic suppliers

  • Private limited companies, LLPs, partnerships, and proprietorships

  • New as well as existing manufacturing units

There is no sector restriction, making the MOOWR scheme widely accessible.

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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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Check More Moowr Details from Banglore Customs Department