MOOWR — Manufacturing and Other Operations in Warehouse Regulations

What is MOOWR

The MOOWR scheme lets a manufacturer set up a private bonded warehouse and carry out manufacturing there, importing inputs and capital goods without paying customs duty at the time of import. Duty only becomes payable if and when the finished goods are cleared for sale within India; if the output is exported instead, no import duty is ever paid on the inputs that went into it. This makes MOOWR a cash-flow friendly alternative to schemes that require upfront duty payment or a fixed export commitment.

Who needs it

• Manufacturers importing machinery and/or raw materials who want to defer duty payment
• Export-oriented manufacturers wanting duty-free imports without a separate export obligation
• Businesses looking to improve working capital by avoiding upfront customs duty outlay

Documents Required

• IEC (Import Export Code)
• GST registration
• Warehouse licence application
• Project report and manufacturing process details
• Security or bond as prescribed by the jurisdictional customs authority
• Digital record-keeping system for tracking warehouse operations

Process

1. Obtain a private bonded warehouse licence under Section 58 of the Customs Act.
2. Obtain manufacturing permission under Section 65 of the Customs Act (the MOOWR permission).
3. Import inputs and capital goods into the bonded warehouse without paying duty.
4. Carry out manufacturing operations within the bonded premises.
5. Clear finished goods for export duty-free, or for domestic sale with duty paid at that stage.
6. File monthly returns covering receipts, consumption and clearances from the warehouse.

FAQs

Is there an investment threshold to use MOOWR?

No. There's no minimum investment threshold — the scheme is open to manufacturing units of any size.

Does MOOWR require an export obligation like EPCG?

No. There's no fixed export obligation under MOOWR — duty is simply deferred or nil depending on how the finished output is eventually cleared.

Can an existing manufacturing unit convert to MOOWR?

Yes. An existing unit can apply for the bonded warehouse licence and MOOWR manufacturing permission for its existing premises.