FAQs
Basics
What is MOOWR?
The Manufacture and Other Operations in Warehouse Regulations, 2019, made under Section 65 of the Customs Act 1962. They let a manufacturer operate inside a customs bonded warehouse on its own premises, importing raw materials and capital goods with the duty deferred rather than paid at the port.
Is MOOWR duty-free?
Only for exports. Duty on inputs used in exported goods is remitted. Duty on inputs used in goods sold in India is deferred and paid when those goods are cleared, without interest. It is a deferral, not an exemption.
Do I have to export to use MOOWR?
No. There is no export obligation. A unit can sell entirely in India, entirely abroad, or both from the same premises.
Eligibility
Who can apply?
Any existing or new unit in the Domestic Tariff Area with a valid IEC and GST registration. There is no minimum investment and no turnover threshold.
Can a foreign company use MOOWR?
Yes, through its Indian entity. The licence is held by the entity that operates the unit in India, usually a subsidiary, with its own IEC and GST registration.
Duty
Which duties are deferred?
Basic Customs Duty, Social Welfare Surcharge, Agriculture Infrastructure Development Cess, IGST, and any applicable anti-dumping or safeguard duty.
Is IGST a real saving under MOOWR?
Usually not a permanent one. Most manufacturers recover IGST as input tax credit, so deferring it helps cash flow rather than cost. The permanent element is the non-creditable duty: BCD, SWS and AIDC.
What happens to duty on capital goods?
It stays deferred with no time limit and no interest for as long as the machinery remains in the unit. It falls due only if the machinery is cleared into the domestic market, and then on its original import value with no allowance for depreciation.
Operations
Does the licence need renewing?
No. It remains valid until it is surrendered or cancelled.
What are the ongoing obligations?
Digital records of every movement of goods, monthly returns in the prescribed form, an ex-bond Bill of Entry for each domestic clearance, and keeping the bond adequate as the value of goods held grows.
How often are MOOWR units audited?
Audits are risk-based rather than on a fixed cycle. Late or inconsistent returns and records that do not reconcile inputs to outputs are what usually draw attention.
Sectors
Can solar projects use MOOWR?
Goods imported for solar power generation projects that supply electricity have been excluded from warehousing under Section 65 since 17 December 2024, by Notification No. 86/2024-Customs. Solar manufacturing, such as cells and modules, is a different question and is not covered by that exclusion.
Exit
How do I leave the scheme?
By surrendering the licence to the Principal Commissioner or Commissioner of Customs, after the warehoused goods have been cleared or exported, the final returns filed and all dues settled. The bond is then cancelled.