Stop blocking working capital on customs duty. Import raw materials & capital goods into a bonded warehouse — duty deferred until you sell, waived when you export.
Most manufacturers importing raw materials or capital goods face the same challenge: customs duty must be paid the moment goods clear the port — before a single unit is produced, before a single invoice is raised.
For high-volume importers, this upfront burden can run into crores every quarter. It ties up working capital, slows expansion, and puts Indian manufacturers at a cost disadvantage against global competitors who operate in duty-free zones.
The MOOWR Scheme was designed to fix exactly this.
Under the MOOWR Scheme India, your bonded manufacturing facility effectively becomes a duty-free production zone — anywhere in India. You manufacture, you sell, and only then does the duty clock start. Export? The duty never applies at all.
The MOOWR Scheme is open to individuals and all types of businesses. To register, applicants must meet one of the following eligibility criteria:
A single combined application covers both the private bonded facility licence (Section 58) and the permission for manufacturing and other operations (Section 65). One form, one process, one approval.
Capital and non-capital goods — including raw materials and components — can remain warehoused until clearance or consumption. No time limit, no deadline pressure, no interest accumulation.
A new manufacturing facility can be set up, or an existing facility converted into a bonded manufacturing facility, irrespective of its location in India. No SEZ zone dependency. No industrial corridor requirement.
All records of manufacturing and other operations are maintained digitally in a single prescribed format. No stacks of physical registers. MOOWR units are not under physical daily control of customs — oversight is risk-based and audit-driven.
Any person who holds or simultaneously applies for a private bonded warehouse licence under Section 58 of the Customs Act, 1962 is eligible. The applicant must be a citizen of India or an entity incorporated or registered in India.
Yes. A factory solely manufacturing for the domestic market is fully eligible. MOOWR is delinked from any export obligation — there is no minimum export requirement under the scheme.
No. Manufacturing and other operations under Section 65 are only permitted in a Private Bonded Warehouse licensed under Section 58. Public Bonded Warehouses licensed under Section 57 are not eligible.
No. A unit licensed under Section 65 and Section 58 is not under the physical control of customs on a day-to-day basis. Monitoring is conducted through risk-based audits, not daily on-site supervision.
Yes. Export benefits under the FTP and the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR) can generally be availed simultaneously in bonded warehouse units, subject to applicable conditions.
No. The licence under Section 58 and the permission under Section 65 are both valid permanently unless cancelled or surrendered. No periodic renewal is required.
Yes — both BCD and IGST on capital goods are deferred. There is no time limit on the deferment and no interest is payable for any period during which the capital goods remain in the bonded facility.
The licence can be obtained on bare land with clearly identified boundaries. A fully constructed building is not a mandatory requirement at the time of application.
Yes. Existing factories in the Domestic Tariff Area can apply to convert to a bonded manufacturing facility. Existing capital goods and inputs must be accounted for in the prescribed format, with appropriate remarks in the accounting form.
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