What is the MOOWR Scheme?
The Manufacturing and Other Operations in Warehouse Regulations (MOOWR), formulated under Section 58 and Section 65 of the Customs Act, 1962, is one of India's most attractive flagship investment and duty-deferment schemes.
Under MOOWR, any manufacturing or processing enterprise can obtain a license from the Principal Commissioner or Commissioner of Customs to operate a Private Customs Bonded Warehouse. This allows the business to import capital goods, plant machinery, intermediate components, and raw materials with 100% upfront deferment of Basic Customs Duty (BCD) and Integrated GST (IGST).
Unmatched Fiscal Advantages of MOOWR
Capital Machinery Imports
Import capital goods and spares with zero upfront customs duty or IGST. Duty remains indefinitely deferred while the machinery remains installed in the bonded manufacturing facility. No interest charges accrue.
Raw Materials & Consumables
Duty on raw materials is deferred until finished products are cleared. If finished goods are exported abroad, all customs duties on the imported raw materials are 100% waived. If sold domestically, duty is paid only at clearance.
Why MOOWR Outperforms Other Trade Schemes
| Feature / Condition | MOOWR Scheme (Section 65) | EPCG Scheme | Special Economic Zone (SEZ) |
|---|---|---|---|
| Export Obligation | None (0% Export Obligation) | 6x duty saved within 6 years | Positive Net Foreign Exchange (NFE) |
| Location Constraints | Any existing factory in India | Any domestic factory | Restricted to notified SEZ plots |
| Domestic Sales (DTA) | Permitted freely with duty on inputs | Permitted after export commitments | Subject to full import tariffs |
| Depreciation on Machinery | Available under standard rules | Available after EODC closure | Applicable upon de-bonding |
Statutory Application Requirements (Form A)
Ocean Technovative prepares the complete documentation dossier and coordinates with the jurisdictional Customs Commissionerate:
- Combined Application (Form A): Prescribed application under Section 58 (private bonded warehouse license) and Section 65 (permission for manufacturing in warehouse).
- Premises Ownership & Blueprint Plan: Registered lease deed or title deed, approved architectural site plan showing segregated bonded storage, manufacturing floor, and cargo gates.
- Triple Duty General Bond: General bond undertaking under Section 59 executed on non-judicial stamp paper covering three times the estimated duty liability.
- Input-Output Norms (SION / Self-Declared): Technical flowchart detailing raw material inputs, manufacturing processes, wastage ratios, and finished output classification.
- Digital Inventory Accounting System: ERP or computerized accounting mechanism compliant with Form B digital register requirements for customs scrutiny.
End-to-End Execution by Ocean Technovative
Our Turnkey Licensing Assistance
1. Feasibility & Financial Modeling: Assessing your capital import expenditure and raw material supply chain to calculate exact cash flow savings under MOOWR.
2. Physical Site Preparation & Filing: Assisting in site boundary demarcation, security compliance, Form A submission, and bond formulation.
3. Customs Inspection & License Issuance: Facilitating verification visits by customs officers, securing the Section 58/65 license order, and training your team on Form B digital registers and Into-Bond / Ex-Bond Bills of Entry.