MOOWR in one paragraph
MOOWR stands for the Manufacturing and Other Operations in Warehouse Regulations, 2019, made under Section 65 of the Customs Act, 1962. A unit that holds a private bonded warehouse licence (Section 58) and permission under Section 65 can bring imported goods into its own premises, manufacture or carry out other operations there, and decide later where the output goes.
How the duty works
| What happens to the goods | Import duty on inputs |
|---|---|
| Imported into the MOOWR unit | Deferred – nothing paid at the port |
| Finished goods exported | Not payable on the imported inputs used |
| Finished goods sold in India | Payable on the imported inputs used, plus GST on the sale |
| Capital goods used in the unit | Deferred while they stay in the unit |
Key benefits
- Cash flow: money is not blocked in BCD and IGST at the port.
- No export obligation: unlike EOU or advance authorisation, there is no minimum export or value addition requirement.
- Your own factory: there is no need to move into an SEZ.
- Flexibility: sell in India or export, as the market demands.
Example
A manufacturer imports machinery worth ₹1 crore. With illustrative rates of BCD 7.5%, SWS 10% of BCD and IGST 18%:
| Item | Amount (₹) |
|---|---|
| Assessable value (CIF) | 1,00,00,000 |
| BCD @ 7.5% | 7,50,000 |
| SWS @ 10% of BCD | 75,000 |
| IGST @ 18% on 1,08,25,000 (CIF + BCD + SWS) | 19,48,500 |
| Total duty at the port | 27,73,500 |
Without MOOWR, about ₹27.7 lakh is paid at the port. Under MOOWR this amount stays in the business until goods are cleared into India, and for output that is exported, the import duty on inputs is not paid at all. (Illustration only; actual duty depends on HS code and notifications.)
Who should consider MOOWR
- Manufacturers that import raw materials or components
- Exporters using imported inputs
- Units planning large capital goods imports
- Businesses comparing EOU, SEZ or advance authorisation
The process
- Feasibility and duty-saving review
- Premises readiness: secure storage, layout plan, digital records
- Online application for the licence and Section 65 permission
- Inspection and verification by the bond officer
- Execution of the bond
- Start of operations
Ongoing compliance
A MOOWR unit must keep digital records of receipt, use, removal and job-work movement of goods and file monthly returns with the bond officer. Domestic clearances need payment of duty on the inputs used. Good records are what make MOOWR work smoothly in an audit.
Frequently asked questions
Is MOOWR only for exporters?
No. Units selling in India can also use MOOWR to defer duty until the goods are cleared for home consumption.
Can a trader use MOOWR?
MOOWR is meant for manufacturing and other operations. Pure trading generally does not qualify.
Is there an export obligation under MOOWR?
No. There is no minimum export or value addition requirement.
This article is general information, not legal advice. Rules and rates change; talk to our team before acting on it.