Manufacturers and Producers
Businesses importing raw materials or components for manufacturing permitted goods in a bonded facility.
Introduction to the scheme
What Is the MOOWR Scheme?
The Manufacture and Other Operations in Warehouse (MOOWR) Scheme is an Indian customs framework that allows eligible businesses to import goods into a licensed bonded warehouse and undertake permitted manufacturing or other operations under the Customs Act, 1962.
It defers applicable customs duties — including Basic Customs Duty, IGST and applicable cesses — on eligible imported inputs and capital goods until the relevant clearance event. This deferment is interest-free, as confirmed by the Government of India in Parliament. Export and domestic clearances have different duty treatment, so the benefit depends on the goods, their use and the applicable legal conditions.
Request a MOOWR Assessment
2019
MOOWR Regulations notified
Section 58 & 65
Customs Act, 1962
No interest
on deferred duties (Government-verified)
Interest-free
deferment until clearance
Scheme overview
1. MOOWR Scheme at a Glance
The key facts, regulations and legal anchors behind the scheme — in one compact reference table.
| Parameter | Details |
|---|---|
| Full form | Manufacture and Other Operations in Warehouse |
| Regulations | Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019 |
| Private warehouse licence | Section 58, Customs Act, 1962 |
| Manufacturing / other operations | Section 65, Customs Act, 1962 |
| Export of warehoused goods | Section 69, read with applicable provisions and conditions |
| Import duty treatment | Deferment of applicable customs duties until the relevant clearance event, without interest |
| Interest on deferred duties | No interest is payable on eligible deferred duties under the MOOWR framework, as confirmed by the Government of India in Parliament |
| Minimum investment | No general minimum investment threshold is prescribed; licensing and compliance requirements still apply |
| Export obligation | MOOWR does not itself impose a general export obligation; other applicable schemes or approvals may have separate conditions |
| Licence validity | Perpetual, until voluntarily surrendered or cancelled |
Legal references and procedures can change. Confirm current notifications and jurisdictional requirements before applying.
Who can apply
2. Eligible Beneficiaries
The deferred-duty provisions are available to all categories of industries located in India, subject to licensing and compliance. The following profiles are typically the most relevant.
Export-Oriented Units
Exporters seeking duty relief on imported inputs used in the production of exported goods.
MSMEs and Large Enterprises
Available to MSMEs and larger businesses, subject to the applicable licensing and compliance requirements.
Assembly and Component Units
Businesses assembling products from imported parts, or manufacturing components for further use.
Capital Goods Importers
Companies importing machinery and equipment for use in permitted manufacturing operations.
Multi-Warehouse Operators
Businesses operating or planning to operate across multiple bonded facilities with inter-warehouse transfers.
Domestic Market Suppliers
Manufacturers serving the Indian market with duty deferred until the relevant domestic clearance.
Processing and Packaging Units
Units engaged in permitted processing, packing, labelling, sorting or testing of imported goods.
What can be done
3. Eligible Activities
MOOWR permits specified manufacturing and other operations inside a licensed bonded warehouse. The precise scope depends on the licence and the approval granted under Section 65 of the Customs Act, 1962.
- Manufacturing of goods Producing finished goods from imported inputs within the bonded warehouse.
- Processing and assembly Assembling components into a finished or semi-finished product.
- Repair and reconditioning Where such operations are specifically permitted and approved.
- Packing and re-packing Packaging goods for storage, transport or final sale.
- Labelling and marking Applying labels, marks or other identifying information.
- Sorting, grading and testing Sorting, grading or testing goods in preparation for clearance or sale.
- Mixing and blending Combining materials to produce a new or refined product, where permitted.
- Any other authorised operation Other operations specifically permitted by the Commissioner of Customs.
Operations must be authorised
Proposed operations must be expressly permitted by the licence and the relevant approval. Activities prohibited under the Customs Act or other applicable law cannot be carried out under MOOWR.
What can be warehoused
4. Eligible Components and Goods
A broad range of imported goods can be warehoused under MOOWR, provided they are eligible under the Customs Act and are not otherwise restricted or prohibited.
| Category | Examples and notes |
|---|---|
| Raw materials | Inputs and materials directly used in manufacturing permitted goods. |
| Capital goods | Machinery, equipment and plant used for the permitted operations. |
| Components and parts | Imported parts and components assembled into finished or semi-finished products. |
| Consumables | Materials consumed during production that do not form part of the final product. |
| Packaging materials | Boxes, containers, labels and similar packaging inputs used in permitted operations. |
| Semi-finished goods | Partially processed goods that require further operations before clearance or export. |
| Warehouse operational goods | Goods used to operate the bonded warehouse itself, where permitted. |
Exclusions apply
Goods prohibited under Section 11 of the Customs Act, 1962 or any other applicable law cannot be warehoused under MOOWR. Confirm the eligibility of specific goods with the jurisdictional Customs authority.
Business advantages
5. Benefits of the MOOWR Scheme
Where the scheme can create real commercial value — always subject to eligibility and compliance conditions.
Defer Applicable Import Duties
Defer applicable customs duties on eligible imported inputs and capital goods instead of paying them upfront, subject to the prescribed conditions.
No Interest on Deferred Duties
Deferred duties are interest-free until the goods are cleared, as confirmed by the Government of India in Parliament.
Raw Material Duty Deferment
Retain working capital while eligible imported raw materials remain under the bonded procedure.
Capital Goods Duty Deferment
Defer applicable import duties on eligible machinery and capital goods used for permitted operations.
Export-Related Duty Treatment
Eligible imported inputs used in exported resultant products may receive full duty waiver under the applicable statutory provisions.
Domestic Market Flexibility
Manufacture for domestic clearance, subject to applicable duties, taxes and customs formalities. No minimum export obligation.
Permitted Warehouse Transfers
Support supply-chain planning through transfers between bonded warehouses under prescribed procedures.
Working Capital Management
Keep eligible duty amounts available to the business for longer, depending on inventory and clearance patterns.
Core financial benefit
6. How Does Import Duty Deferment Work?
For eligible warehoused imports, applicable customs duties — including Basic Customs Duty, IGST and applicable cesses — can be deferred rather than paid upfront at import. The Government of India has confirmed in Parliament that when dutiable inputs or capital goods are brought into a warehouse, all customs duties on such warehoused goods stand deferred till clearance, without interest.
| Situation | General treatment |
|---|---|
| Eligible raw materials enter the bonded warehouse | Applicable customs duties are deferred, subject to the rules. |
| Eligible capital goods enter the bonded warehouse | Applicable customs duties are deferred, subject to the rules. |
| Resultant goods are cleared domestically | Applicable duties on the imported content and other applicable taxes must be assessed and paid at the prescribed stage, without interest on the deferred portion. |
| Resultant goods are exported | Export-related duty treatment may eliminate duty on eligible imported goods contained in the exported resultant product, subject to statutory conditions. |
| Goods move to another bonded warehouse | Transfer may be permitted without immediate duty payment if the prescribed procedure is followed. |
Deferment is not exemption
Duty deferment means payment is postponed without interest. Duty exemption or relief means duty is not payable where a specific legal provision and its conditions apply. MOOWR does not provide a universal permanent exemption from all taxes and duties.
Illustrative calculation
7. Example: Potential Import Duty Deferred
The example below demonstrates how deferment may affect cash flow. The duty rate is hypothetical and is not a rate prescribed by MOOWR.
| Parameter | Illustrative amount |
|---|---|
| Value of eligible imported goods | ₹1,00,00,000 |
| Assumed applicable customs duty rate | 10% (illustrative only) |
| Illustrative customs duty amount | ₹10,00,000 |
| Potential duty deferred | Up to ₹10,00,000, if the full amount qualifies |
| Potential upfront cash retained | Up to ₹10,00,000 until the relevant clearance event |
This is not a guaranteed permanent saving
The actual duty rate and amount depend on tariff classification, customs valuation, applicable notifications and other relevant levies. The final duty outcome depends on the clearance route and legal conditions.
Statutory basis
8. Important Legal Provisions and Circulars
| Legal reference | Relevance |
|---|---|
| Section 58, Customs Act, 1962 | Licensing of a private warehouse. |
| Section 58A, Customs Act, 1962 | Licensing framework for special warehouses; applicability must be checked for the proposed case. |
| Section 65, Customs Act, 1962 | Manufacturing and other operations in a warehouse. |
| Section 69, Customs Act, 1962 | Export of warehoused goods, subject to applicable provisions. |
| Section 71, Customs Act, 1962 | Removal of warehoused goods only through legally permitted routes. |
| Section 72, Customs Act, 1962 | Addresses duty recovery and consequences for specified cases of improper removal or non-compliance. |
| Circular No. 18/2025-Customs | Dated 22 July 2025 — withdrew the Invest India portal facility for MOOWR applications. |
| Circular No. 28/2025-Customs | Dated 15 November 2025 — launched the dedicated online module on ICEGATE 2.0 for all Section 65 permissions (MOOWR and MOOSWR). |
Legal note: This page is general information, not legal or tax advice. Confirm the current law, notifications and procedure with the jurisdictional Customs Commissionerate or a qualified customs professional.
Step-by-step
9. Application Process: 6 Main Steps
Recent update: applications are now online via ICEGATE 2.0
Following Circular No. 18/2025-Customs (22 July 2025), the earlier Invest India portal facility was withdrawn. The Invest India facility remained available as an interim arrangement until 15 November 2025. From that date, Circular No. 28/2025-Customs operationalised a dedicated online module on ICEGATE 2.0 for all permissions under Section 65 of the Customs Act, covering MOOWR and MOOSWR.
| Step | Action | Purpose |
|---|---|---|
| 1 | Assess eligibility | Review the import profile, proposed operations and premises. |
| 2 | Prepare project details | Describe manufacturing, imported inputs and resultant products. |
| 3 | Apply for warehouse licensing under Section 58 | Submit the application through the ICEGATE 2.0 module, using the port code notified by the jurisdictional Chief Commissioner. |
| 4 | Apply for operational permission under Section 65 | Submit the Section 65 permission application through the same ICEGATE 2.0 module. |
| 5 | Complete bond and compliance requirements | Meet applicable bond, security and documentation requirements. |
| 6 | Start authorised operations | Begin only after required approvals and formalities are complete. |
Applications are now processed through the ICEGATE 2.0 warehouse-licensing module. User manuals are available on the ICEGATE guidelines page. Technical issues may be reported to the ICEGATE helpdesk.
Checklist
10. Documents to Prepare
| No. | Document or information | Purpose |
|---|---|---|
| 1 | Company incorporation or registration documents | Identify the applicant. |
| 2 | PAN and applicable GST details | Business and tax information. |
| 3 | Warehouse ownership or lease documents | Establish rights over the premises. |
| 4 | Site plan and warehouse layout | Explain storage and operational arrangements. |
| 5 | Detailed project report or business plan | Describe proposed operations. |
| 6 | List of imported raw materials and components | Identify goods to be warehoused. |
| 7 | Capital goods and machinery list | Identify eligible equipment. |
| 8 | Finished-product list | Describe resultant products. |
| 9 | Input-output norms and manufacturing flow | Explain material consumption and production relationships. |
| 10 | Inventory and record-keeping process | Demonstrate traceability and compliance. |
| 11 | Applicable customs bond and security documents | Meet statutory and procedural requirements. |
| 12 | Board resolution or authorisation letter, where applicable | Authorise the representative. |
| 13 | Other documents requested by Customs | Address case-specific requirements. |
The exact checklist depends on the applicant and current customs instructions. Confirm insurance wording, bond formats, security and submission method with the relevant authority.
Ongoing obligations
11. Compliance Requirements and Timelines
| Requirement | Timeline or frequency | Action |
|---|---|---|
| Change in the nature of operations | 15 days | Inform the jurisdictional Commissioner in accordance with the applicable circular. |
| Record keeping | Ongoing | Maintain prescribed records of receipt, processing, stock and clearances. |
| Periodic record submission | As prescribed by applicable circulars and regulations | Submit records in the required format and frequency. |
| Customs bond and security | As applicable | Maintain required bonds, guarantees and security. |
| Domestic clearance | At the relevant clearance event | Pay applicable duties and taxes and complete prescribed formalities. No interest on the deferred portion. |
| Export clearance | At the relevant export event | Complete shipping and customs documentation. |
Verify the current procedure and timeline before relying on a historical circular for a live application.
Common questions
12. Frequently Asked Questions About MOOWR
Quick, plain-language answers to the questions businesses ask most often.
1. Does MOOWR provide duty deferment?
Yes. Eligible imports can receive deferment of applicable customs duties under the scheme. The Government of India has confirmed in Parliament that all customs duties on warehoused goods stand deferred till clearance, without interest.
2. Is interest charged on deferred duties?
No. Deferred customs duties under MOOWR are interest-free until the goods are cleared, as confirmed by the Government of India in Parliament.
3. Does MOOWR guarantee permanent duty exemption?
No. Deferment and exemption are different. Duty may become payable when goods are cleared domestically. Export-related relief depends on the relevant legal provisions and conditions.
4. Is there a minimum investment amount?
No general minimum investment threshold is prescribed. Applicants must still satisfy licensing and operational requirements.
5. Is an export obligation mandatory?
No. MOOWR does not impose a general export obligation. Separate authorisations, schemes or laws may impose obligations in particular cases.
6. Can a business sell 100% of its production in India?
Yes, domestic clearance is possible subject to applicable law, duties, taxes and compliance. MOOWR does not mandate any minimum export performance.
7. Can machinery be imported under MOOWR?
Yes. Eligible imported capital goods may be warehoused with deferred customs duties, subject to applicable requirements and clearance treatment. No interest is payable on the deferred duty until clearance.
8. Is there a fixed percentage of savings?
No universal savings percentage is established. A business-specific calculation is needed based on the actual duty rates, valuation and clearance route.
9. Is MOOWR a cash subsidy?
No. MOOWR is primarily a customs warehousing and duty-deferment framework, not a fixed cash subsidy.
10. How do I apply under the current process?
Applications for warehouse licensing under Section 58 and permission under Section 65 are submitted through the dedicated online module on ICEGATE 2.0, launched via Circular No. 28/2025-Customs dated 15 November 2025. Use the port code notified by your jurisdictional Chief Commissioner and refer to the ICEGATE user manuals.
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