Scheme Information
MOOWR – Manufacture and Other Operations in Warehouse is a Duty Deferment scheme launched by Central Board of Indirect Taxes and Customs under Section 65 of the Customs Act, 1962.
The Scheme had been amended to simplify the Compliance by issue of Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 and Circular 34/2019 both dated 01-10-2019.
Some of the salient features of the scheme are as under:
| Sl No | Particulars | Details |
| 1 | Scheme introduction date | 01-10-2019 |
| 2 | Validity of the scheme | Open Scheme till valid |
| 3 | Objective of the scheme | Replacing Advance Authorisation, EPCG, EOU & SEZ Schemes |
| 4 | Benefits of Scheme | Deferred Customs Duty (Basic Custom Duty + IGST) Payment which leads to Non Blocking of Working Capital and saving of interest on Working Capital & Investment (CG) |
| 5 | Who are eligible | New as well as Existing Manufacturing Entrepreneurs |
| 6 | Obligations / Liability | Total Customs Duty Applicable at the time of import including Anti Dumping Duty & Safeguard Duty. |
| 7 | Major / Mandatory Conditions |
1) Insurance favouring President of India 2) Triple Duty Bond (Running Bond) 3) Indemnity Bond |
| 8 | When to pay Customs Duty |
1) Input Material - At the time of Removal of Goods from Warehouse (BSR) for Manufacturing of Finished Goods for Domestic sale. 2) Machinery (CG) - At the time of Removal of Capital Goods for Domestic Sale or Scrapping of Such Capital Goods. |
| 9 | Valuation Rules for sale of Imported Machinery (CG) for payment of Customs Duty |
1) Scrap Mode - Original Import Value 2) Export Mode - As per Section 14 of Customs Act, 1962 |
| 10 | Instances for which Customs Duty not required to be paid |
1) Export of Finished Goods where Imported input Materials (Warehoused) have been used. 2) Export of Machinery (CG). |
| 11 | Multiple Schemes can be operated parallelly or not | Yes |
| 12 | Application Mode | Online |
| 13 | Validity of the Certificate | Once issued the license it is valid till cancelled or surrendered |
| 14 | Post License Compliance | Book Keeping (Accountability), Audit & Returns. |
| 15 | Exit MOOWR Scheme Procedure | Option is Available |
Snapshot
1. Full form of MOOWR - Manufacture & Other Operations in Warehouse
2. MOOWR is related to Imports to enjoy and avail Customs Duty (All Customs Duty Components viz BCD, Cess, IGST, Anti Dumping duty & Safe Guard Duty) Differed Payment option.
3. This is nothing but a Warehousing Facility (Scheme). Also named as Private Bonded Warehouse / Store Room (BSR).
4. Major advantage of this MOOWR Scheme is that, saving of Working Capital Bank Interest, Non-blocking of Working Capital, etc.
5. Jurisdictional Commissioner of Customs will issue MOOWR Licence.
6. MOOWR is very Important and useful Scheme for the Importers who are having or proposing for regular Import of Input Materials (Raw Material, Additives, Consumables, Catalysts, Jigs & Tools) to manufacture Finished Goods for Domestic Sale.
7. Similarly MOOWR is also important for the Importers who import Machinery in bulk for initial implementation of the Project / Industry or for Expansion to enjoy differed Customs Duty benefit.
8. Post MOOWR Licence compliance is mandatory and required.
9. External Agency / Consultant(s) is a better option to keep keen monitoring and filing of Monthly Returns.
10. If the Unit(s) is having Export Potential, then EPCG is the better option for import of Machinery instead of opting MOOWR Scheme.
11. In MOOWR Scheme for Finished Goods Export, Norms (Input-Output) Ratios are required to submit to Customs Commissioner to determine the Wastage %.
12. MOOWR is a substitution / alternative scheme for Advance Authoristion, EPCG, EOU & SEZ Schemes.