Frequently Asked Questions (FAQs) on MOOWR Scheme

The Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) allows companies to import capital goods, raw materials, and consumables without upfront customs duty. Duties are deferred until domestic clearance, and exports enjoy 100% exemption.

No. There is no export obligation under MOOWR. Goods can be sold in the domestic market, with duties payable only at the time of clearance. This flexibility makes it attractive for both exporters and domestic sellers.

Any business registered in India can apply, including:

• MSMEs and large manufacturers.

• Units in regulated industries (pharma, food, chemicals, distilleries).

• Service providers handling bonded operations. ⚠️ Prohibited or restricted goods under Customs law are not eligible.

  
  

• Zero duty on exports.

• Deferred duty on domestic clearances.

• No export obligations unlike EPCG/SEZ.

• Working capital savings as no upfront duty is blocked.

• Capital goods can stay indefinitely without re-export requirements.

• Simpler compliance (only monthly returns).

  
  

The process involves:

1. Feasibility & ROI study.

2. Application to jurisdictional Customs Commissioner.

3. Submission of documents & undertakings.

4. Execution of a bond & security.

5. Approval and issuance of MOOWR license.

   
   

6. What documents are required?

• Company incorporation certificate, PAN, GST registration.

• Import Export Code (IEC).

• Factory license / MSME registration.

• Premises ownership/lease proof & factory layout.

• List of goods (capital/inputs) proposed for import.

• Financials (balance sheets/projections).

• Declarations & undertakings for compliance.

  
  

• Capital goods – machinery, plant, equipment.

• Raw materials & components – required for manufacturing.

• Consumables & spares – for production/maintenance.

• Semi-finished/finished goods – for processing or re-export.

  
  

• Maintain proper stock registers of imports, clearances, consumption.

• File a monthly return with Customs.

• Allow periodic inspection by Customs officers.

• Keep records for audit/verification.

  
  

Typically 4–6 weeks after submission, depending on Customs workload and completeness of documents.

Yes. It can be used along with:

• GST input tax credit.

• PLI scheme.

• State incentives like PSI.

• EPCG or Advance Authorization (with caution to avoid double-benefit issues).

  
  

On exit:

• Unutilized imported goods must be cleared on payment of duty.

• Capital goods can be retained by paying applicable duty.

• Bond is cancelled after all dues are settled.

  
  

• Non-submission of returns → penalties under Customs Act.

• Wrongful use of goods → duty demand + interest + penalty.

• Non-compliance with warehousing rules may result in cancellation of license.

  
  

• EPCG requires export obligation; MOOWR has none.

• EPCG duty exemption is linked to fulfillment of exports; MOOWR allows indefinite deferment.

• MOOWR is more flexible for companies with domestic focus.

  
  

14. What savings can I expect under MOOWR?

Savings depend on:

• Value of imported capital goods/raw materials.

• Applicable customs duty rate.

• Proportion of exports vs. domestic clearances.

  
  

Yes, if operations involve bonded storage/warehousing (e.g., EPC contractors importing equipment for projects). However, service-only companies without imports may not benefit.

• Government fee – bond/security requirement.

• Consultant fee – professional services for application, compliance, and ROI studies.

• Compliance cost – maintaining registers & monthly filings. The savings in duty usually outweigh these costs significantly.

  
  

Indefinitely. There is no time limit for warehousing under MOOWR (unlike earlier bonded warehouse schemes).

Normally, duties are paid upfront at import, blocking working capital. Under MOOWR, duty is paid only on domestic clearance, meaning money stays available for operations and growth.