Transform your factory into a Private Bonded Warehouse. Defer Customs Duty on Capital Goods and Raw Materials indefinitely. Save your Working Capital.
See how much duty you can save.
MOOWR (Manufacturing and Other Operations in Warehouse Regulations) is a flagship scheme by the Government of India under Section 65 of the Customs Act, 1962. It aims to boost the "Make in India" initiative by allowing importers to set up a Private Bonded Warehouse within their factory premises.
Under this scheme, manufacturers can import raw materials and capital goods (machinery) without paying Customs Duty at the time of import. The duty is deferred until the finished goods are cleared for the domestic market. If the finished goods are exported, the deferred duty on inputs is fully remitted.
No duty payment on import of Capital Goods and Raw Materials. Duty is payable only when finished goods are sold in India.
No interest is charged on deferred duty, even for years, provided the materials are used for manufacturing.
Unlike EPCG/Advance Authorization, MOOWR has no export targets. You can sell 100% domestically without restrictions.
Why MOOWR is superior for modern manufacturing.
| Feature | MOOWR Scheme | EPCG Scheme | Advance Authorization |
|---|---|---|---|
| Import Duty | Deferred (Zero Upfront) | Zero (Conditional) | Zero (Inputs only) |
| Export Obligation | NONE | 6 Times Duty Saved | Value Addition Required |
| Capital Goods | Allowed | Allowed | Not Allowed |
| IGST Payment | Deferred | Exempted (Pre-Import) | Exempted |
| Depreciation | Allowed on Capital Goods | Not Applicable | Not Applicable |
File common application online via ICEGATE (Annexure A).
Principal Commissioner grants permission under Section 65.
Execute a Triple Duty Bond with Customs covering liability.
Start importing goods duty-free into the warehouse.
Carry out operations. Clear final goods as per demand.
End-to-End Setup
Converting an existing factory into a Private Bonded Warehouse requires strict adherence to Customs regulations. We handle the entire licensing and compliance lifecycle.
MOOWR turns your factory into a 'Legal Customs Vault.' CloudDesk ensures the keys always turn smoothly.
Unlike Advance Authorisation, MOOWR has no fixed export obligation and no time limit for duty deferral.CloudDesk architects your licensing so that you only pay duty if and when you sell to the domestic market (DTA). If you export, the duty is waived forever.
Getting a MOOWR license involves both a Bonded Warehouse License (Sec 58) and Permission for Manufacturing (Sec 65). CloudDesk handles the dual-application process, ensuring your factory layout, security protocols, and bond execution are approved by the Commissioner in one go.
The biggest compliance hurdle is the Triple-Column Ledger (Input, Process, Output).CloudDesk’s Bonded-Inventory Module automates this ledger, ensuring your raw material consumption matches your export/domestic sales perfectly, making your monthly returns "Audit-Proof."
While Customs duty is deferred, IGST rules are complex under MOOWR.CloudDesk performs a Tax-Optimization Audit to ensure you aren't accidentally blocking your GST credits while trying to save on Customs duty.
It allows you to import capital goods and raw materials into a bonded warehouse (your factory) without paying BCD (Basic Customs Duty) or IGST. You only pay these taxes when you clear the finished goods into the Indian domestic market. If you export the finished goods, you pay zero duty.
"• No Export Obligation: Unlike EOUs, there is no ""Net Foreign Exchange"" (NFE) requirement. • No Location Restriction: Unlike SEZs, you can set up a MOOWR unit anywhere in India. • Ease of Exit: Exiting MOOWR is significantly simpler than exiting an SEZ or EOU."
No. You can keep raw materials or capital goods in the bonded premises indefinitely without paying duty until they are "cleared" for domestic consumption.
Any person (Proprietorship, Partnership, or Company) who has been granted a license under Section 58 of the Customs Act for a bonded warehouse and intends to carry out manufacturing or other operations under Section 65.
Your premises must be secure. Requirements include: (1) Strong physical boundaries, (2) 24/7 CCTV surveillance with a 30-day backup, and (3) Digital record-keeping of all entry and exit. CloudDesk provides a Security Checklist to ensure you meet these before the inspector arrives.
No. You use your existing IEC. However, your ICEGATE ID must be mapped to the specific Bonded Warehouse Code generated after your license is approved.
You must file an Ex-Bond Bill of Entry and pay the deferred BCD and IGST on the raw materials used in that product. There is no interest charged on the deferred duty if paid at the time of clearance.
Yes. Inter-unit transfers are permitted without payment of duty, making it an excellent scheme for companies with multiple manufacturing stages across different locations.