- MOOWR (Manufacture and Other Operations in Warehouse Regulations, 2019) runs under Section 65 of the Customs Act, 1962. It lets you manufacture inside a customs bonded warehouse licensed under Section 58.
- It defers duty but does not exempt it. Duty on imported capital goods and inputs waits until they leave the warehouse. On export, the duty on imported inputs is remitted. On domestic (DTA) sale, you pay the input duty plus GST on the finished goods.
- There is no export obligation, no minimum investment and no location restriction, and the licence needs no renewal. Since Circular 28/2025-Customs, you apply online on ICEGATE 2.0.
What is the MOOWR scheme?
MOOWR stands for Manufacture and Other Operations in Warehouse Regulations, 2019. CBIC notified it in 2019 to put Section 65 of the Customs Act, 1962 into practice. Section 65 allows manufacturing and "other operations" inside a customs bonded warehouse. The premises are licensed as a private bonded warehouse under Section 58, and the Section 65 permission lets you manufacture there.
CBIC's MOOWR brochure says the aim is to make India a competitive manufacturing location and investment destination. It does this with one approving authority, digital records and duty that is paid only when goods leave the bond. In plain terms, your factory works like a customs warehouse. Imported goods enter it without duty, and duty is charged only when goods leave it for the Indian market.
How the MOOWR scheme works
- Import into bond. Capital goods and raw materials come in on a warehousing Bill of Entry. Duty is assessed but not paid.
- Move to the unit. The goods go from the port to your MOOWR premises and are entered in your digital records.
- Manufacture or process. You can make, assemble, repair, test, refurbish or carry out other operations. Inputs can also go out for job work and come back.
- Clear the output. You can export the finished goods on a Shipping Bill with no duty on the imported inputs. You can also clear them to the domestic tariff area (DTA) on an ex-bond Bill of Entry by paying the deferred input duty plus GST on the finished goods.
Key benefits of the MOOWR scheme
Duty treatment under MOOWR: export, DTA sale and capital goods
MOOWR is a duty deferment scheme, not a duty exemption scheme. Who finally pays the duty depends on where the goods go.
| What leaves the bond | Where it goes | What is payable |
|---|---|---|
| Finished goods | Export | No duty on the imported inputs used (remitted). Domestic inputs are zero-rated. |
| Finished goods | Domestic market (DTA) | Customs duty on the imported inputs used, plus GST on the finished goods. The IGST paid can be claimed as input credit. |
| Imported inputs as such | DTA | Deferred customs duty on those inputs |
| Capital goods | DTA | Deferred duty becomes payable on clearance. Confirm the value basis for used machinery with your Commissionerate. |
| Capital goods or finished goods | Export | Imported input duty is remitted |
Worked view. Say a unit imports components with assessable value ₹1 crore and the duty works out at ₹20 lakh. If 70% of the output is exported, the duty on 70% of the components is never paid. On the 30% sold in India, the unit pays duty on the components that went into those goods (₹6 lakh) plus GST on the finished goods. Capital goods duty is deferred the same way, for as long as the machinery stays in the bond. For how BCD, SWS and IGST are calculated, see the import duty calculation guide.
Who can apply for MOOWR
- Any business that wants to manufacture or carry out other operations on imported goods. That includes new and existing units, MSMEs and large manufacturers.
- The business needs a valid IEC, premises it can secure and run as a bonded warehouse, and a clean record that passes antecedent verification.
- Typical users are electronics and EMS assemblers, capital-goods-heavy projects such as solar, cement and power, auto components, defence, and repair or refurbishment operations.
2024 change to Section 65. The Finance (No. 2) Act, 2024 lets the Central Government notify processes or classes of goods that are not allowed under Section 65. Before you plan a MOOWR unit, check whether any such notification covers your product or process.
How to apply for MOOWR on ICEGATE
- Get ready: IEC, GSTIN, PAN, a premises layout plan, proof of ownership or lease, details of the manufacturing process and of the goods to be imported, and a customs broker if you use one.
- Apply online: Under Circular 28/2025-Customs (15 November 2025), Section 65 permissions for MOOWR (and MOOSWR for special warehouses) are filed on the ICEGATE 2.0 warehouse licensing module. This replaced the Invest India portal, which took applications until 15 November 2025. Each Chief Commissioner has issued a public notice naming the port codes that receive applications in its jurisdiction. The user manual is on icegate.gov.in under warehouse licensing.
- Verification: The jurisdictional Commissioner of Customs is the single point of approval. Customs checks your antecedents and verifies the site once.
- Bond and insurance: You execute the prescribed bond and take an insurance policy covering the warehoused goods.
- Grant: You receive the Section 58 licence and the Section 65 permission on a single application-cum-approval form. Neither needs renewal. They stay valid until you surrender them or customs cancels them.
MOOWR compliance after approval
| Obligation | What it means in practice |
|---|---|
| Digital records | Keep electronic accounts of every receipt, use in manufacture, job-work movement, waste and removal, in the prescribed format, matched to Bill of Entry and Shipping Bill numbers |
| Monthly return | Send the monthly return to the bond officer within 10 days after the month ends |
| Record retention | Keep records for at least five years |
| Custody and security | Control access, keep bonded goods secure and separate, and keep the insurance current |
| Removals | Every clearance goes on a document: a Shipping Bill for export, an ex-bond Bill of Entry for DTA sale, or a transfer document for job work or another warehouse |
| Audit | Customs relies on your records instead of physical control, so expect audits and reconciliation of input–output against the bond |
MOOWR vs EOU, SEZ and Advance Authorisation
| MOOWR | EOU | SEZ unit | Advance Authorisation | |
|---|---|---|---|---|
| Duty benefit | Deferment, with remission on export | Exemption | Exemption | Exemption on inputs |
| Export obligation | None | Positive NFE | Positive NFE | Yes, value and quantity based |
| Domestic sales | Unrestricted, on paying duty | Limited | Treated as import into DTA | Not for duty-free inputs |
| Location | Anywhere | Anywhere | Inside a notified zone | Anywhere |
| Capital goods | Covered, duty deferred | Covered | Covered | Not covered (see EPCG) |
| Approval | Customs Commissioner | Development Commissioner | Development Commissioner | DGFT |
MOOWR suits you when your export share is uncertain or mostly domestic but your import content is high, or when heavy imported machinery would otherwise lock up working capital. If you export nearly all your output and can meet a fixed obligation, Advance Authorisation or drawback and RoDTEP may give a better result. Many exporters run the numbers both ways.
Points to watch before you choose MOOWR
Interest on capital goods is disputed. Customs has demanded interest under Section 61(2) where imported capital goods were cleared to the DTA without being used in the bond, or stayed in the warehouse for a long time. CESTAT has held that capital goods only need to be intended for use in the Section 65 unit, and some cases are still in dispute. Keep evidence of installation and use.
Trading is not manufacturing. If goods are imported into the bond and resold with little or no processing, customs may question the Section 65 permission. Notified exclusions may also apply under the 2024 amendment.
Records carry the scheme. Without a customs officer on site, gaps in input–output reconciliation, unrecorded job-work movements or a late monthly return are the usual triggers for show cause notices.
Frequently asked questions
What is the full form of MOOWR?
MOOWR stands for Manufacture and Other Operations in Warehouse Regulations, 2019. It is made under Section 65 of the Customs Act, 1962, and lets you manufacture inside a customs bonded warehouse licensed under Section 58.
Is MOOWR a duty exemption scheme?
No. MOOWR defers duty. Duty on imported inputs and capital goods is paid when they are cleared to the domestic market. It is remitted only when the goods, or products made from them, are exported.
Is there an export obligation under MOOWR?
No. There is no export obligation. You can export the finished goods, sell them in India on payment of duty, or do both in any proportion.
How do I apply for the MOOWR scheme?
Since Circular 28/2025-Customs dated 15 November 2025, applications for Section 65 permission are filed online on the ICEGATE 2.0 warehouse licensing module. The jurisdictional Commissioner of Customs approves them after antecedent verification, a site visit, and execution of the bond with an insurance policy.
Does a MOOWR licence need to be renewed?
No. The licence and permission stay valid until you surrender them or customs cancels them.
Can MSMEs use MOOWR?
Yes. The scheme has no minimum investment and no location restriction, and existing units can apply. CBIC describes it as MSME friendly.
Can inputs be sent for job work under MOOWR?
Yes. Inputs can be sent out for job work and brought back to the bonded premises. Each movement must be recorded in the digital accounts.
What is the difference between MOOWR and EOU?
An EOU gives duty exemption but needs positive net foreign exchange and limits domestic sales. MOOWR gives duty deferment with no export obligation and no limit on domestic sales once duty is paid. Approval comes from the Customs Commissioner instead of a Development Commissioner.
How EXIMnx helps: EXIMnx records each warehousing Bill of Entry, issue to production, job-work movement and ex-bond or export clearance against the same item. You can reconcile inputs against outputs and prepare the monthly MOOWR return from live data instead of spreadsheets. See Customs & ICEGATE and Compliance.
- CBIC, MOOWR brochure (Directorate General of Taxpayer Services): mumbaicustomszone1.gov.in
- CBIC, Customs Act 1962 (Sections 58, 61, 65), MOOWR Regulations 2019 and Circular 28/2025-Customs: cbic.gov.in
- ICEGATE, warehouse licensing module and user manuals: icegate.gov.in
This guide is a practical overview, not legal or tax advice. Rules, rates and procedures change by notification, so confirm against the current text before you act.