Import Process

MOOWR Import Procedure

The import process under MOOWR differs significantly from regular imports. It begins with filing a Bill of Entry for Warehousing rather than for Home Consumption. A space certificate must confirm warehouse capacity, and a transit bond with insurance ensures safe transportation from port to warehouse.

Once goods arrive at the warehouse, a re-warehousing certificate must be submitted to the bond officer within 30 days. This certificate, digitally signed by the warehouse keeper, confirms receipt and enables the closure of the transit bond.

Clearance Process for Manufactured Goods

MOOWR Unit Production

Manufacturing using duty-deferred imported inputs

Clearance Decision

Choose between export or domestic market

Export Pathway

No duties on imported materials if finished goods are exported

Domestic Pathway

Pay proportionate duties on imported inputs plus GST on finished goods

When manufactured goods are ready for clearance from a MOOWR unit, two pathways are available. For exports, the scheme offers maximum benefits—all duties on imported raw materials are permanently exempted, and the finished goods can qualify for zero-rated GST, creating a highly competitive export proposition.

For domestic sales, the manufacturer must pay the proportionate import duties on the raw materials used plus applicable GST on the finished goods. This selective duty payment system optimizes cash flow while ensuring appropriate revenue collection.

Capital Goods Clearance Process

Export of Capital Goods

When capital goods imported under the MOOWR Scheme are exported from the facility:
1) No Basic Customs Duty is payable
2) IGST is completely exempted
3) Proper export documentation must be maintained
4) Export must be verified and certified by customs officials

Domestic Clearance of Capital Goods

When capital goods are cleared for domestic use or sale:
1) Full Basic Customs Duty becomes payable
2) Complete IGST must be paid
3) Duty is calculated on original import value
4) No depreciation benefit is allowed for duty calculation
5)Rates applicable on the date of clearance apply

The MOOWR Scheme offers significant flexibility for handling capital goods. The duty deferment can continue for the entire lifespan of the equipment as long as it remains within the bonded warehouse. This aspect is particularly valuable for capital-intensive industries, as it allows businesses to defer potentially substantial duty payments for many years.

MOOWR Scheme

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