March 2024

The Manufacture and Other Operations in Warehouse Regulations (MOOWR) Scheme is a significant initiative introduced by the Central Board of Indirect Taxes and Customs (CBIC). Its primary objective is facilitating manufacturing and other operational activities within bonded warehouses. Let’s delve into the details of this scheme: What is the MOOWR Scheme? The MOOWR Scheme allows importers to defer duty payments until the removal of goods from the warehouse. It aims to make India a competitive manufacturing hub and an appealing investment destination. Under this scheme, raw materials and capital goods can be imported without immediate payment of duty, provided they are used for manufacturing or other operations within the bonded facility. Key Benefits of the MOOWR Scheme: Deferred Duty Payment: Importers can delay duty payments until the goods are removed from the warehouse, thus saving working capital. No Bar on Refund: Accumulated input tax credit on exports is not restricted. Duty Deferment on Capital Goods: Capital goods and spare parts can also benefit from deferred duty. Simplified Norms: Unlike Advance Authorisation, there is no need for norms fixation. Duty Implications: Clearance for Home Consumption: Duty must be paid when the resultant product is cleared for home consumption. Exported Goods: Duty is exempt if the resultant products are exported. Waste or Scrap: Waste or scrap generated during manufacturing may be cleared for home consumption or exported.  Application Process: File an application with the Commissionerate of Customs, including relevant documents. Submit a triple-duty bond for the intended manufactured goods. Obtain a warehouse code for each unit under application. Map the warehouse code at every port of import. Submit the triple duty bond at import ports. Provide Standard Input-Output Norms (SION) for each type of finished product. In conclusion, the MOOWR Scheme provides a strategic advantage for manufacturers, allowing them to optimize costs, enhance competitiveness, and contribute to India’s growth story. Whether you’re a large corporation or a small business, understanding and leveraging this scheme can significantly impact your operations in the global market. For expert guidance and assistance navigating import-export regulations and maximizing the benefits of schemes like MOOWR, consider partnering with Global Tax Masters – Best Import Export Consultants. Their experienced professionals can provide tailored solutions to streamline your international trade activities and help you stay ahead in today’s dynamic business landscape.

The MOOWR (Manufacturing and Other Operations in Warehoused Goods Regulations) scheme streamlines the import process for manufacturing by deferring duties. Here’s a concise overview of the application process: Begin by filling out the online application form on the Invest India Portal. Before starting the application, gather the following documents/information: PAN, IEC, MOA, Cancelled Cheque copies Lease deed/ownership proof document copy Directors’ details – name, address, Aadhar, DIN Factory layout copy Solvency certificate copy in the name of Commissioner of Custom’s Description and HS codes of inputs, intermediate, and final goods Proforma invoice copy of capital goods for import Insurance policy copy in the President of India’s name Details of unit – plot size, construction type, year of construction, etc. Security arrangement details at the plant CCTV system installation details at the plant Fire protection equipment details, along with burglar alarm system Ensure correct mention of the commissioner having jurisdiction over the proposed unit while submitting the online form. Invest India portal forwards the file to the relevant Commissionerate based on this information. Submission of 2 copies of the above set of documents along with 4-5 mandatory undertakings with the jurisdictional Customs office. The format of the undertakings is subjective and can change from officer to officer. The jurisdictional Customs authorities take 8-15 days to verify the submitted application. If everything is satisfactory, the Customs Superintendent conducts a physical verification visit to the proposed premises. The purpose of the visit is to ensure the safety and security of duty-free goods storage. The Superintendent checks all aspects that might affect security thoroughly. A verification report is prepared and submitted by the Superintendent to the office of the Commissioner of Customs, informing whether the proposed premises is eligible for MOOWR registration. After receiving the verification report recommending MOOWR unit, the Commissioner’s office scrutinizes the entire application. If all documents are in order, a MOOWR license is issued to the unit. Upon MOOWR license issuance, a warehouse code is generated by the jurisdictional Customs officer. This code allows the MOOWR unit to file the bill of entry for warehousing at the port of import to defer/save import duties, including IGST. After obtaining the MOOWR license and warehouse code, the unit must submit a general bond to the authorities. The bond amount is always three times the solvency certificate amount.