MOOWR Scheme Explained (2025) | Import Without Paying Duty Upfront

What is the MOOWR Scheme? (Manufacturing in Bond Explained)

The MOOWR Scheme, formally known as the Manufacturing and Other Operations in Warehouse Regulations, 2019, is a Government of India initiative that allows manufacturers to import raw materials and capital goods without paying customs duty at the time of import.

Under MOOWR, goods are stored and used in a bonded warehouse or bonded manufacturing unit, and customs duty becomes payable only when the finished goods are cleared for sale in the domestic market.

If the finished goods are exported, no customs duty is payable at all.

This makes MOOWR one of the most powerful customs duty deferment schemes for Indian manufacturers.

Who Should Use the MOOWR Scheme?

The MOOWR scheme is ideal for:

• Manufacturing companies importing capital machinery

• Manufacturers importing raw materials or components

• Export-oriented manufacturers

• Domestic manufacturers facing working capital pressure

• Companies planning long-term production cycles

There is no minimum export obligation, making MOOWR suitable even for purely domestic manufacturers.

How the MOOWR Scheme Works (Step-by-Step)

1. Import goods under MOOWR into a bonded warehouse

2. No customs duty paid at import stage

3. Use goods for manufacturing or other approved operations

4. Final goods are:

   • Exported → Zero duty

   • Sold domestically → Duty paid only at clearance

Importantly, no interest is charged on the deferred customs duty.

MOOWR Scheme Example: Import Without Blocking Capital

Case Study: xyz Pvt. Ltd.

• Imported machine value: ₹1 crore

• Customs duty rate: 10%

• Duty amount: ₹10 lakh

Without MOOWR

• ₹10 lakh paid immediately at the port

• Capital blocked before production begins

With MOOWR

• Machine imported into bonded factory

• ₹0 duty paid upfront

• Production starts immediately

Scenario 1: Finished Goods Exported

• Manufactured products exported outside India

Result:
 No customs duty payable on the imported machine

Scenario 2: Finished Goods Sold in India After 1 Years

• Goods sold domestically .

Result:

• ₹10 lakh duty paid after 1 years

• No interest on deferred duty

 This effectively works as an interest-free loan from the government.

Need Help with MOOWR Registration & Compliance?

At DGFT EXIM, we provide end-to-end MOOWR consultancy, including:

• MOOWR eligibility analysis

• Bonded warehouse approval

• Customs coordination

• Documentation & compliance

• Ongoing operational support

DGFT EXIM — No guesswork. Only compliant trade.