What is MOOWR?
MOOWR lets an Indian factory operate as a customs bonded warehouse, so duty on imported raw materials and machinery is deferred rather than paid at import.
The short answer
Your factory becomes a customs bonded warehouse. Imported raw materials and machinery come in with the duty deferred rather than paid. Duty falls due only when the finished goods are sold domestically — and if you export them instead, it is remitted.
The problem it solves
Every shipment that lands at an Indian port locks up cash. On a large capital programme the duty component alone can tie up crores before the plant produces a single unit. That money sits with Customs while the project waits.
MOOWR does not reduce the duty. It moves the moment you pay it to the moment you actually earn.
How it works
- 1. Your premises are licensed as a private bonded warehouse under Section 58 of the Customs Act 1962.
- 2. You take permission under Section 65 to carry out manufacturing and other operations inside those premises.
- 3. Imported goods enter on a Bill of Entry for Warehousing, with the duty deferred rather than waived.
- 4. Manufacturing proceeds normally, in your own factory, with your own staff.
- 5. What happens next depends on where the output goes.
The three exit routes
| Where the goods go | What happens to the duty | How it is filed |
|---|---|---|
| Exported | Remitted under Section 69, never payable. Exports stay zero-rated under GST. | Shipping Bill or Bill of Export |
| Sold domestically | Payable pro-rata on the imported content, with no interest. | Ex-bond Bill of Entry |
| Cleared as they are, without manufacturing | Payable within 90 days, with interest thereafter. | Ex-bond Bill of Entry |
What gets deferred
- Basic Customs Duty (BCD)
- Social Welfare Surcharge (SWS)
- Agriculture Infrastructure Development Cess (AIDC)
- Integrated GST (IGST)
- Any applicable anti-dumping or safeguard duty
Check the duty on what you import
Capital goods
Duty on imported capital goods stays deferred for as long as the machinery remains in the warehouse — with no time limit and no interest. It falls due only if the machinery is later cleared into the domestic market, and the machinery can be exported after use without duty.
Duty paid on capital goods does not get built into the cost of the finished goods sold domestically; only the imported content of those goods carries duty.
Who can apply
- Any existing or new factory in the Domestic Tariff Area
- A valid Importer Exporter Code and GST registration
- No turnover threshold, no export obligation, no minimum investment, no renewal
- Existing capital goods and inputs are accounted for in the prescribed form at the point of conversion
When MOOWR doesn't work
This is about fit, not about a flaw in the scheme. There are situations where it earns its keep and situations where it does not.
- Pure trading of imported finished goods. Without manufacturing, duty falls due within 90 days and interest runs thereafter, so the economics are quite different.
- Inputs that already arrive largely duty-free under a free trade agreement or an exemption. There is little left to defer.
- Premises that cannot meet the physical and record-keeping requirements of a bonded warehouse under customs control.
- Operations unwilling to sustain monthly returns and digital records for as long as the licence is held.
Where the answer is no, we will say so plainly.
Where to go next
Duty lookup — what you currently pay