MOOWR Scheme India (2026): Rules, Benefits, & Application

The Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR), is a transformative customs duty deferment scheme introduced by the Central Board of Indirect Taxes and Customs (CBIC). Designed to boost manufacturing and enhance liquidity, this scheme empowers businesses to import raw materials, components, and capital goods without the burden of upfront duty payments.

For manufacturers and EXIM professionals, the MOOWR scheme represents an unparalleled working capital mechanism. By deferring Basic Customs Duty (BCD) and Integrated GST (IGST), businesses can keep their capital invested in growth and production rather than locked in taxes.

What is the CBIC MOOWR Scheme?

The MOOWR scheme operates under Chapter IX of the Customs Act, 1962. It enables a manufacturing unit to postpone customs duty on imported inputs. The legal foundation relies on two core provisions:

Section 58: Licenses the facility as a private bonded warehouse.
Section 65: Grants permission to undertake manufacturing and other operations on the warehoused goods.

When goods are imported under this scheme, they are received on a warehousing bill of entry, meaning the duty is assessed but not collected. The duty is only paid when the final manufactured goods are cleared for domestic sale within India. If the final goods are exported, the import duty on the raw materials is completely waived.

Key Advantages and Benefits of the MOOWR Scheme

The MOOWR scheme offers profound financial and operational advantages, making it highly appealing for long-term business viability:

Indefinite Duty Deferment: There is no time limit on how long raw materials or capital machinery can remain in the bonded warehouse.
Zero Interest: Unlike ordinary bonded warehouses, MOOWR units face absolutely no interest on the deferred duty.
Capital Goods Exemption: Duty on imported machinery is deferred for as long as the machine stays in the unit, allowing firms to invest in advanced technology without immediate duty burdens.
No Export Obligation: Unlike SEZ or EPCG frameworks, MOOWR imposes no minimum export obligation or net foreign exchange requirements.
No Geographic Limitations: Any unit situated within the Domestic Tariff Area (DTA) in India can apply. You can convert an existing factory right where it stands.
Seamless Transfers: Resultant goods can be transferred from one Section 65 unit to another bonded warehouse without paying duty.

Is your manufacturing facility maximizing its working capital?

Consult MCS Experts

Navigating customs bonding requires precision and strategic foresight. Partner with Mundhra Consulting Services, recognized as the best MOOWR consultant in India. We handle everything from facility audits and complex input-output norm structuring to seamless ICEGATE registrations and ongoing compliance.

Who is Eligible for MOOWR?

The eligibility criteria for the MOOWR scheme are highly accessible. Any person or legal entity with premises that Customs can license is eligible to apply. This includes:

Manufacturers with both domestic and export sales.
Businesses importing heavy capital machinery, tooling, or battery storage systems.
Entities undertaking assembly, kitting, or value-addition operations within a secure premises.

How Do I Apply for the MOOWR Scheme? (2026 Process)

As per Circular No. 28/2025-Customs, effective November 15, 2025, the CBIC launched a dedicated ICEGATE 2.0 module specifically for Section 65 permissions, completing the digitization of the MOOWR application workflow.

Here is the step-by-step process to apply online:

Register on ICEGATE 2.0: Undertake a fresh registration as a “Warehouse Licensee” using your GSTIN, which will fetch your entity details automatically.
Combined Application: The portal provides a single, combined application form that covers both the Section 58 warehouse licence and the Section 65 manufacturing permission.
Document Upload: Assemble and upload essential documents through the ICEGATE 2.0 portal, including your PAN, IEC, GST registration, proof of premises ownership, and a detailed site layout plan.
Declare Input-Output Norms: Standard Input Output Norms (SION) do not apply. You must self-declare your input-output norms for raw materials and final products within the system.
Physical Verification: A bond officer will conduct a one-time physical inspection of your premises to verify security, fire protection, and digital inventory systems.
Bond Execution: Upon approval, you must execute a triple duty bond under Section 59, exactly as formatted in Annexure C of Circular No. 34/2019-Customs. Notably, no bank guarantee is required.

Expert Execution for Complex Customs Operations

Consult MCS Experts

A rejected or delayed MOOWR application can stall your supply chain and tie up vital capital. Ensure first-time approval by working with the best MOOWR consultant in India. Mundhra Consulting Services provides end-to-end execution, from layout blueprinting and ICEGATE filing to final customs physical verification.

Frequently Asked Questions (FAQs)

What are the disadvantages of the MOOWR scheme?

While the scheme is overwhelmingly positive for working capital, the only major consideration is strict compliance. The facility must maintain a meticulous digital inventory and file monthly returns to the bond officer. Mundhra Consulting Services fully absorbs this compliance burden for our clients, ensuring risk-free operations.

How do I apply for the MOOWR scheme?

Applications are processed entirely online via the ICEGATE 2.0 portal. You must register as a Warehouse Licensee, submit a combined application for Sections 58 and 65, upload facility layouts, and execute a Section 59 triple duty bond after a physical verification by Customs.

Who is eligible for MOOWR?

Any business entity – whether a new setup or an existing domestic factory in the Domestic Tariff Area – that intends to manufacture, assemble, or process goods using imported inputs is eligible. There are no minimum investment thresholds.

What is the CBIC MOOWR scheme?

The Manufacture and Other Operations in Warehouse Regulations (MOOWR) is a scheme established by the CBIC under Section 65 of the Customs Act. It allows businesses to import raw materials and capital goods into a private bonded warehouse without upfront payment of Customs Duty and IGST.

What happens to capital goods cleared for the domestic market?

If machinery imported under the scheme is eventually cleared for home consumption in India, duty is charged strictly on its original import value. Customs does not grant depreciation allowances for capital goods removed from a MOOWR unit.

What is the difference between MOOWR and the EMI scheme?

The Eligible Manufacturer Importer (EMI) scheme (effective April 1, 2026 to March 31, 2028) defers BCD and IGST on a consolidated monthly basis – goods cleared 1st–15th are paid by the 17th, and goods cleared 16th–end of month are paid by the 2nd of the following month. EMI requires no bond, no bank guarantee, and no dedicated warehouse, serving as a temporary cash flow alternative for eligible manufacturers.

Also Read: Complete Guide to MOOWR License in India 2026: Process & Benefits