MOOWR Scheme
The Manufacturing and Other Operations in Warehouse Regulations (MOOWR), 2019 is a flagship scheme introduced by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance, Government of India. The scheme was launched in October 2019 and continues to be operational with amendments. The main purpose of the MOOWR Scheme is to allow manufacturing and other operations to be carried out in a bonded warehouse without upfront payment of Customs Duty or IGST. As an MSME or Startup, your business can benefit through improved cash flow, reduced cost of production, and enhanced export competitiveness, especially if you rely on imported raw materials or capital goods.
Key Features
- Single-window approval by Jurisdictional Customs Commissioner: Under the MOOWR Scheme, approval is granted by the Jurisdictional Commissioner of Customs, acting as a single authority. This simplifies the approval process and removes the need to approach multiple departments, making it easier for you as an MSME to start operations quickly.
- One-time licence with no requirement of renewal: The licence issued under MOOWR is a one-time approval and remains valid until it is voluntarily surrendered or cancelled. This significantly reduces long-term compliance burden and recurring paperwork for MSMEs and startups.
- Open to all businesses including existing manufacturing units: The scheme is available to all types of businesses, including MSMEs, startups, and large enterprises. Importantly, existing manufacturing units can also opt for MOOWR without setting up a new facility.
- Permits manufacturing and other operations in bonded warehouse: You can carry out manufacturing, processing, assembly, packing, labelling, testing, or other approved operations within a bonded warehouse. This allows value addition while goods remain under Customs control.
- Deferred payment of Customs Duty and IGST on imports: Customs Duty and IGST on imported raw materials and capital goods are not required to be paid at the time of import. The duty liability is deferred until the goods are cleared for domestic consumption, helping you manage working capital better.
- No export obligation or minimum value addition requirement: The MOOWR Scheme does not impose any export obligation or minimum value addition criteria. This provides flexibility to MSMEs to decide production and sales based on market demand rather than compliance conditions.
- Freedom to sell goods in domestic market or export: Finished goods manufactured under the scheme can be freely sold in the domestic market or exported. Duties are payable only when goods are cleared for domestic sale, while exports do not attract Customs Duty on imported inputs.
- Flexible sourcing of inputs and capital goods: Inputs and capital goods can be sourced through imports, domestic suppliers, or from special zones such as SEZs or FTWZs. This flexibility allows you to optimise procurement cost and supply chain efficiency.
- Job work and subcontracting permitted: The scheme allows inputs or intermediate goods to be sent for job work, subject to prescribed conditions. This feature is particularly useful for MSMEs that rely on specialised vendors for certain manufacturing stages.
- MSME-friendly with no minimum investment or location restriction: There is no minimum investment threshold and no restriction on the geographical location of the unit. This makes the MOOWR Scheme highly accessible for MSMEs operating from industrial areas, leased premises, or emerging manufacturing clusters.
Financial Assistance
Eligibility Criteria
Who can apply:
- Manufacturer, trader, or service provider
- MSMEs, Startups, and large enterprises are eligible
- Unit must obtain a bonded warehouse licence under Customs Act, 1962
- Premises must meet Customs security and compliance requirements
Who cannot apply:
- Units unwilling to comply with Customs supervision and record-keeping requirements
Documents Required
- Import Export Code (IEC)
- GST Registration Certificate
- Company incorporation documents
- Manufacturing process note
- Warehouse layout & site plan
- Financial statements
- Bond and security documents
- KYC of directors/partners
Application process for the scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply via Customs Online Portal
- Apply for a bonded warehouse license under Section 58.
- Apply for manufacturing permission under Section 65.
- Execute bond and security with Customs.
- Receive site inspection and approval from jurisdictional officer.
Option 3: Apply Through Jurisdictional Customs Office
Submit physical application and documents to the concerned Customs Commissionerate for processing and approval.
Power combo with the scheme
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Frequently asked questions
What is the MOOWR Scheme for MSMEs?
The MOOWR Scheme allows MSME manufacturers and exporters to import goods without upfront customs duty and manufacture them in bonded warehouses, with full duty exemption on exports.
Who is eligible for the MOOWR Scheme?
Any Indian manufacturing entity, including MSMEs, that secures a bonded warehouse licence and permission under the Customs Act.
What are the main benefits of the MOOWR Scheme?
Deferred customs duty, zero duty on exports, improved working capital, operational flexibility, and simplified compliance.
Is MOOWR applicable across sectors?
Yes. Any manufacturing sector importing raw materials or capital goods can use the scheme.
How can MSMEs apply for MOOWR?
By applying to customs authorities for a bonded warehouse licence under Section 58 and manufacturing permission under Section 65, followed by compliance with record-keeping norms.