India's MOOWR Scheme The Smartest Way to Manufacture

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.

Every Rupee Locked in Customs Duty Is a Rupee Not Growing Your Business

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.

Why the MOOWR Scheme Stands Apart from Other Manufacturing Incentives

No Export Obligation

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EPCG, EOU, and advance authorisation schemes all come with mandatory export targets. Miss them and you face duty recovery with interest. The MOOWR Scheme has zero export obligation — your entire output can go to the Indian market and you still get the full benefit of Customs Duty Deferment under MOOWR.

Set Up Anywhere in India

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SEZ units are geographically restricted to designated zones. MOOWR has no such limitation. Whether your plant is in an industrial corridor, a Tier-2 city, or a remote production hub — your existing or new facility can be converted into a bonded manufacturing unit under MOOWR Scheme India.

One Permanent Licence

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Many incentive schemes require periodic licence renewals, re-applications, and compliance revalidations. MOOWR grants a permanent licence under Section 58 and Section 65 — valid until surrendered or cancelled. Once set up, the framework works for you indefinitely.

No Interest on Deferred Duty

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The deferred customs duty carries zero interest for the entire period the goods remain in the bonded warehouse. Unlike loans against duty or EPCG interest exposure, MOOWR lets you hold imported goods — including capital goods — without any financial cost on the deferred amount.

Capital Goods Benefit

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Import heavy machinery and production equipment under MOOWR — use it for years — and when you eventually export the machinery or scrap it for export-linked clearance, the original customs duty is waived. For domestic clearance, you pay duty at the time of removal, with no interest for the entire period of use.

MOOWR Scheme Eligibility Criteria

The MOOWR Scheme is open to individuals and all types of businesses. To register, applicants must meet one of the following eligibility criteria:

  • Any individual or business holding a valid warehouse licence under Section 58 of the Customs Act, 1962, in accordance with the Private Warehouse Licensing Regulations, 2016.
  • Any individual or business applying for a warehouse licence under Section 58 of the Customs Act, 1962, together with permission to undertake manufacturing and other operations within the warehouse under Section 65 of the Act.

Ease of Bonded Manufacturing Under MOOWR

Common Form :


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.

Unlimited period of warehousing:

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.

No Geographical Restriction :

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.

Easy Digital Compliance :


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.

FAQ

Who is eligible for manufacturing and other operations in a bonded warehouse?

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.

Do we need to renew the MOOWR licence periodically?

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.

Get in Touch

Phone Number

99232 93203

Email

office@accurateconsultants.in

Address

  • Plot number 85,N3 CIDCO,Besides Highcourt, Chh.Sambhajinagar – MH. 431003

602, Sanmati Enclave ,LMD Chowk , Bavdhan Pune, MH. 411021

D1- 312 ,Sumadhura Sandoval , Thubharahalli ,Vibgyor School Road , near Kundalahalli Gate , Bengaluru , Karnataka , 560066