The MOOWR Scheme or the Manufacturing and Other Operations in a Warehouse Regulations, introduced by the Government of India in 2019 and regulated by the CBIC, is a transformative initiative designed to promote ease of doing business in the manufacturing sector. Open to all manufacturers without any minimum investment threshold, it allows duty-free import of machinery and raw materials with no export obligations. Here’s how it works:
Duty-Free Imports: Companies operating under the MOOWR scheme can import both new and second-hand machinery, along with raw materials, without paying customs duties such as Basic Customs Duty (BCD), Integrated Goods and Services Tax (IGST), Social Welfare Surcharge (SWS), and Anti-Dumping Duty (ADD).
Duty Payment on Scrap or Resale: Duty is to be paid if the machine is removed from the factory for any purpose, including reselling or scrapping. However, one of the significant advantages is that no interest is charged on the deferred duty, even if the machinery is scrapped or resold.
Submit application on Invest India portal followed by physical submission to jurisdictional Customs Commissionerate with all required documentation.
Customs authorities verify the application within 8-15 days, followed by a physical inspection of the proposed premises by the Customs Superintendent.
The inspection focuses on security measures like CCTV coverage, fire protection equipment, security personnel, and other factors affecting the safety of duty-free goods.
Based on the verification report, the Commissioner's office reviews the application and issues a MOOWR license if all requirements are met.
Jurisdictional Customs officer generates a warehouse code that enables the unit to file bills of entry for warehousing to defer import duties.
Any Manufacturer Importing Capital Goods and Raw Materials
Any Existing or New Manufacturing Unit.
