Manufacture and Other Operations in Warehouse Scheme
A revolutionary duty deferment scheme launched by Central Board of Indirect Taxes and Customs under Section 65 of the Customs Act, 1962.
Scheme Overview
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.
Launched On
October 1, 2019
Validity
Open Scheme till valid
Application Mode
Online
Compliance
Book Keeping (Accountability), Audit & Returns
Benefits of MOOWR Scheme
Deferred Customs Duty
Defer payment of Basic Custom Duty + IGST, leading to improved cash flow management for your business.
Working Capital Optimization
Non-blocking of working capital and significant savings on interest costs for both working capital and investments.
Scheme Flexibility
Can be operated in parallel with other schemes, providing maximum flexibility for your business operations.
Replacing Multiple Schemes
MOOWR Scheme aims to replace and simplify multiple existing schemes:
Eligibility & Requirements
Who Can Apply?
Both new and existing manufacturing entrepreneurs are eligible for the MOOWR Scheme.
Mandatory Conditions
- Insurance favouring President of India
- Triple Duty Bond (Running Bond)
- Indemnity Bond
Obligations & Liability
Total Customs Duty Applicable at the time of import including:
Key Features of MOOWR Scheme
Comprehensive details about the scheme's operation and benefits
| Particulars | Details |
|---|---|
| Scheme introduction date | 01-10-2019 |
| Validity of the scheme | Open Scheme till valid |
| Objective of the scheme | Replacing Advance Authorisation, EPCG, EOU & SEZ Schemes |
| 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) |
| Who are eligible | New as well as Existing Manufacturing Entrepreneurs |
| Obligations / Liability | Total Customs Duty Applicable at the time of import including Anti Dumping Duty & Safeguard Duty |
| Major / Mandatory Conditions |
1) Insurance favouring President of India 2) Triple Duty Bond (Running Bond) 3) Indemnity Bond |
| 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. |
| 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 |
| 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). |
| Multiple Schemes can be operated parallelly or not | Yes |
| Application Mode | Online |
| Validity of the Certificate | Once issued the license it is valid till cancelled or surrendered |
| Post License Compliance | Book Keeping (Accountability), Audit & Returns |
| Exit MOOWR Scheme Procedure | Option is Available |
Frequently Asked Questions
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