₹5 crore duty deferred for a manufacturer with no exports
The manufacturer.
Background
A new laminate paper unit requiring substantial imported machinery, selling entirely into the domestic market with no export plans.
The problem
Every export-oriented scheme was unavailable to them.
What they did
Imported capital goods under MOOWR, ran production for the domestic market, and imported moulds as needed.
What happened
Imported ₹18 crore of machinery against a ₹10 crore plan, saved ₹5 crore of duty, and after two years sold the machinery locally to move to newer technology, paying the duty then, without interest.
Why it matters
This is the case that breaks the assumption that customs schemes are only for exporters.
The figures
- ₹
55 crore - Customs duty deferred, zero exports
100100 %- Domestic sales
- ₹
1818 crore - Capital goods imported
- ₹
1010 crore - Capital goods originally planned
What would this be worth in your factory?
Work it through with your own import values. Indicative only.
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