If you’re a manufacturer—or planning to become one—this scheme could be the silent accelerator your balance sheet has been waiting for. Let’s unpack what MOOWR is, who qualifies, the real-world benefits, and how to get started.
What Exactly is MOOWR?
In today’s cut-throat global market, every rupee saved on duties can fuel growth, innovation, and jobs. Yet, one of the most powerful tools in India’s ‘Make in India’ arsenal remains surprisingly under the radar: the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme. Launched by the Central Board of Indirect Taxes and Customs (CBIC), MOOWR lets businesses import raw materials, capital goods, and components without paying a single paisa in customs duty upfront—and with no interest, no time limit, and no export obligation.
Yes, you read that right. Unlimited duty postponement. Zero cash blockage. Pure liquidity to scale your operations.
Introduced under Section 65 of the Customs Act, 1962 and revamped in 2019, MOOWR allows companies to operate out of a licensed bonded warehouse where:
- You import goods without paying Basic Customs Duty (BCD) or IGST.
- You store, process, assemble, or manufacture inside the warehouse.
- Duties are triggered only when finished goods enter the domestic market.
- Exports? 100% duty-free on the imported content.
- By-products or scrap? Export duty-free or clear locally with applicable duties.
Unlike older schemes like EPCG or Advance Authorization, there’s no mandatory export target. Sell 100% in India or 100% abroad—MOOWR doesn’t care. It’s built for flexibility.
Who Can Apply?
MOOWR is refreshingly inclusive:
| Eligible ✅ |
|---|
| Indian companies, LLPs, proprietorships |
| Startups & SMEs |
| 100% export units |
| Third-party job workers |
No minimum investment. No location restrictions. No turnover threshold.
Convert your existing factory into a bonded warehouse or set up a new one—MOOWR adapts to you.
You can even apply for the warehouse license (Section 58) and manufacturing permission (Section 65) in one single application. Less paperwork, faster approval.
The Benefits That Actually Move the Needle
Let’s talk numbers and strategy.
| Benefit | Impact |
|---|---|
| Zero upfront duty | Save 10–40% working capital on imports |
| No interest on deferred duty | Unlike bank loans—free financing! |
| Unlimited storage time | No pressure to clear inventory |
| Perpetual license | No renewals, no expiry stress |
| Export = Full duty remission | Compete globally with lower costs |
| Domestic sales? Pay deferred duty only on imported inputs consumed | Cash flow stays intact; no tax on value addition |
Example:
A pharma unit imports APIs worth ₹50 Cr annually. Under normal import: ~₹15 Cr blocked in duties.
Under MOOWR: ₹0 blocked. That ₹15 Cr now funds a new R&D lab or export push.
How It Works in Daily Operations
- Import → Goods enter bonded warehouse (duty deferred)
- Process → Manufacture, assemble, pack
- Decide:
- Export → File shipping bill → Duty = ₹0
- Sell in India → File ex-bond bill of entry → Pay deferred duty only on imported inputs consumed (per your Input-Output norms)
- Move to another bonded unit → Duty-free transfer
- Report → Submit monthly return (digital, simple)
No daily customs officer visits. No physical supervision unless high-risk.
Why MOOWR is the Future of ‘Make in India’
- Liquidity → Reinvest in technology, talent, capacity
- Competitiveness → Match China/Vietnam on input costs
- Ease of Doing Business → One license, digital compliance, pan-India validity
This isn’t just a tax scheme. It’s strategic infrastructure for Indian manufacturing.
Still unsure?
Reach out to Trade Bridge Advisors LLP for a free MOOWR eligibility audit. One consultation could unlock crores in working capital.
Don’t let duties drain your growth. MOOWR is your license to manufacture smarter.
Make in India. Pay Later. Win Faster.