June 10, 2025/
Manufacturers in India who rely heavily on imported capital goods and raw materials now have more...
MOOWR Scheme, is a revolutionary scheme introduced by the Government of India to promote domestic manufacturing. Under this Scheme, manufacturers in India can import capital goods and raw materials without payment of import duties, thereby significantly reducing working capital blockage and production costs.
One of the biggest advantages of the MOOWR Scheme is its simplicity and flexibility. There is no export obligation, no minimum investment requirement, no condition on employment generation, and no compulsion to be in a specific sector. This makes the MOOWR Scheme ideal for all types of manufacturers, from MSMEs to large enterprises.
The MOOWR Scheme Registration Process is straightforward and requires only a one-time license from the jurisdictional customs office. Post-approval, manufacturers can start duty-free imports immediately. The scheme is designed to support India’s “Make in India” vision by enhancing ease of doing business.
If you’re looking to register your factory under the MOOWR Scheme and want end-to-end support, working with an experienced MOOWR Scheme Consultant ensures timely approvals and 100% compliance. At Global Tax Masters, we have successfully handled more than 300 MOOWR registrations across India.
| Duty liability if you decide to sell the machine after 10 years | ₹ 0 |
| Total available funds after 10 years from EMI savings investment | ₹ 0 |
| Input Tax Credit of the IGST amount (once duty payment is made) | ₹ 0 |
| Net Savings under MOOWR Scheme | ₹ 0 |
Section 58 permits duty-free storage of imported goods in a custom bonded warehouse while Section 65 allows further processing or manufacturing activities on such duty-free goods in the warehouse.
Issued on 1 October 2019, this circular details the application process, application form, monthly return format, and other procedural requirements.
Dated 1 October 2019, this notification formally introduced the Manufacture and Other Operations in Warehouse Regulations, 2019, specifying all rules regarding eligibility, application, and import processes.
Released on 27 October 2020 via F. No. 484/03/2015, this document addresses common queries in a simple question-and-answer format to clarify practical aspects of the scheme.
Textiles, automobiles, food processing, refineries, electronics, pharmaceuticals, and more
Companies that both manufacture and trade goods (subject to additional conditions)
Entities performing manufacturing operations for other manufacturers
The MOOWR Scheme offers exceptional flexibility with no minimum investment threshold requirements. The scheme is designed to be inclusive, allowing manufacturers from diverse sectors to benefit.
Any manufacturer importing raw materials and capital goods can avail benefits under the MOOWR Scheme. This includes existing manufacturing units seeking duty deferment for subsequent imports. Even job workers performing manufacturing processes for other manufacturers can import capital goods under this scheme without immediate duty payment.
The amount a unit can import without paying import duties is determined by the solvency certificate provided. A solvency certificate of ₹1 crore allows duty deferment up to that amount. Manufacturers can submit additional solvency certificates as needed to increase their eligible duty deferment limit.
Manufacturing facility becomes a Private Customs Bonded Warehouse
Raw materials and capital goods imported without paying duties
Duty payment only if cleared domestically; no duty if exported
Processing of imported goods into finished products
Under the MOOWR Scheme, the manufacturing facility is converted into a Private Customs Bonded Warehouse. Imported goods can be deposited in this warehouse by filing a bill of entry for warehousing, without paying any Customs duty or IGST. Manufacturing operations can then be carried out on these goods, and the finished products can be removed for either domestic sales or export.
For domestic clearance, proportionate import duty is paid only on the imported materials used. For exports, both import duties and GST can be zero-rated, providing significant tax advantages.
Through registration under the MOOWR Scheme, your factory is converted in to a Bonded Manufacturing Unit & a warehouse code is allotted.
Goods can be imported in the factory by way of filing a bill of entry for warehousing, without payment of any Customs duty + IGST.
Manufacturing process can be carried out on such goods in the factory & finished goods can be sold locally as well as exported.
When finished goods are sold locally, pay proportionate import duty on the imported raw materials used in the production of such goods.
If finished goods are exported, the proportionate import duty on the imported raw materials used is automatically exempted.
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