MOOWR Scheme: Purpose, Objectives, Benefits, Eligibility, Application Process

The MOOWR scheme is a strategic initiative from CBIC to defer customs duties on imported goods. In this article, we will explore what is MOOWR scheme, look at the MOOWR full form, provide you with insights on the types of businesses covered, and the purpose and objectives of MOOWR scheme. 

Meaning of MOOWR Scheme

MOOWR full form is Manufacturing and Other Operations in Warehouse Regulations. MOOWR scheme was introduced by CBIC in 1996 and revamped in 2019 to boost the Make in India campaign and provide foreign businesses with a simplified approval process for manufacturing operations within a bonded warehouse.

Purpose and Objectives of MOOWR Scheme

The purpose and objective of MOOWR scheme is to make India a manufacturing hub and an investment destination. CBIC launched this scheme to defer customs duties on imported goods used for manufacturing or other activities such as re-labelling, re-packing, grading, sorting, testing, and repair.

Key Features of MOOWR

Now that you know what is MOOWR scheme is, let's delve into the key features of MOOWR:

Single Point of approvals 

The Commissioner of Customs is the go-to person for all approvals and simplifying things.

Single application form

There's a single form for licenses and permissions for private bonded facilities and manufacturing operations, reducing paperwork.

Setup anywhere

You can set up a new manufacturing facility or convert an existing one into a bonded facility, regardless of its location.

Digital record-keeping 

All records are kept digitally in a standardised format, making it easy to manage and track.

Simple bond process

Before getting a license, a Customs Officer visits to check compliance, and a bond is submitted to the Customs Commissioner.

Duty exemption

Businesses get exemptions on customs duty for imported materials used in making finished products.

Flexible clearance options

Warehoused goods can be cleared for use in the country, for export, or sent to another bonded facility, offering choices.

Monthly reporting

Businesses need to submit monthly reports to stay in the scheme.

No obligation limits

No strict requirements for minimum exports or domestic sales give businesses more flexibility.

Benefits of MOOWR Scheme for Manufacturers

MOOWR scheme benefits manufacturers in many ways. The following are the key benefits for manufacturers:

• MOOWR scheme defers Customs Duty on imported raw materials and capital goods, and there's no Customs duty if the same goods are exported. 
• There's no time limit for storing goods, the MOOWR scheme license doesn't need renewal, and there's a single contact point for approvals. 
• The unit's location is flexible, with no physical control by Customs and no export obligations. 
• Warehouse-to-warehouse transfers are easy, and there's no minimum investment required for setting up a MOOWR unit.

MOOWR Scheme Eligibility Criteria

Individuals or any type of businesses can register for this scheme by meeting the following MOOWR scheme eligibility criteria: 

• Anyone holding a license for a warehouse under section 58 of the Act, in compliance with the Private Warehouse Licensing Regulations, 2016.
• Individuals seeking a license for a warehouse under section 58 of the Act, along with permission to conduct manufacturing or other operations within the warehouse under section 65 of the Act, are also eligible to apply. 

MOOWR Scheme Application Process

MOOWR scheme application process is straightforward, and here are the steps you need to take to register for this scheme:  

1. Fill out the online application with Annexure A.
2. Sign a bond and give it to the Jurisdictional Commissioner of Customs, your main contact.
3. The Commissioner checks your application and place, then gives you a license. This license is good to go until you decide to cancel or surrender it. 

MOOWR scheme is a practical and advantageous solution for manufacturers, offering a streamlined application process and many benefits. From deferred Customs Duty on imported materials to perpetual license validity and simplified compliance, this scheme provides a supportive framework for thriving businesses.