Summary: The article explains the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme introduced under Section 65 of the Customs Act, 1962 to reduce the working capital burden on manufacturers importing capital goods and raw materials. Under the scheme, customs duty is deferred at the time of import, enabling businesses to improve cash flow without any export obligation. It outlines the eligibility criteria, including engagement in manufacturing, availability of suitable bonded warehouse premises, maintenance of inventory records, and compliance with customs regulations. The article also lists the documents required for obtaining a MOOWR licence, the application process before the jurisdictional Customs Commissioner, and the inspections conducted before approval. Further, it highlights the key post-licence compliances, such as maintenance of warehouse records, timely reporting, stock registers, monthly returns, and intimation of operational changes. The article concludes that MOOWR is a beneficial customs initiative that enhances working capital efficiency by deferring customs duty on imports.
What is MOOWR?
The MOOWR (Manufacturing and Other Operations in Warehouse Regulations) is a scheme introduced by Government of India that permits the businesses to import raw material and capital goods without paying custom duty at the time of import.
KEY BENEFITS:
1. Custom duty deferment at the time of import of goods.
2. Better capital management as duty is not required to be paid immediately enabling the company to use their funds for business operations.
3. Benefits on Capital Goods
4. No export obligations
5. Suitable for long term manufacturing
ELIGIBILITY:
A company may apply for MOOWR license if it:
1. Is engaged in manufacturing business
2. Has suitable premises that can be notified ad bonded warehouse
3. Maintains proper inventory and accounting records
4. Is capable of complying with customs regulations and warehouse controls
DOCUMETS REQUIRED:
1. Certificate of Incorporation
2. MOA & AOA
3. IEC (Import Export Code)
4. GST registration
5. PAN Card of company
6. Latest Balance Sheet
7. Copy of Income Tax Return
8. List of Directors and ID Proof (Aadhar and PAN) along With DIN
9. Copy of MSME
10. Board resolution for application under MOOWR
11. Board resolution for Authorised Signatory and ID Proof of Authorised Signatory
12. Appointment letter (as per Company HR) and Experience Certificate of Warehouse Keeper and Aadhar and PAN card of the same
13. Digital Signature of the Warehouse Keeper
14. Digital Signature of the Authorized Signatory
15. Fire safety plan
16. Rent Agreement / Ownership Proof
17. Site plan
18. Copy of goods proposed to be manufactured and inputs details
19. Insurance policy – special contingency policy
20. Undertaking under Section 73A
21. Undertaking for indemnity
22. Bank solvency certificate
23. General Bond
24. CLU
25. Electricity Bill
26. Fire NOC
All the documents mentioned above must be signed by the authorised signatory and must bear the company stamp.
HOW TO APPLY:
1. Prepare required documents
2. Submit the prescribed application to the jurisdictional Customs Commissioner for approval of the warehouse premises.
3. After obtaining the warehouse licence, apply for permission to undertake manufacturing and other operations within the bonded warehouse.
4. Customs officers may inspect the premises to verify security arrangements, warehouse suitability, and record-keeping systems.
5. Upon approval, the company can begin importing capital goods and raw materials under the MOOWR scheme.
POST LICENSE COMPLIANCE:
Below are the key compliance to be fulfilled after issuance of MOOWR license:
1. Display of Board outside the premise of facility – “Custom Private bonded warehouse, MOOWR, 2019”.
2. Display of License and warehouse code letter
3. Bill of entry for warehousing to be generated at customs port on arrival of consignment for capital goods.
4. Only those HSN to be used in Bill of entry which is submitted at the time of taking the License. Addition of HSN would require approx. 30 days
5. Proper bill of entry/delivery challan and e-way bill to be issued for movement of machinery from customs Port to Unit
6. Custom seal to be open in the presence of warehouse keeper. Seal no. to be noted for record.
7. Warehouse keeper will sign all document prepare for receipt.
8. Warehouse keeper, ensure that all records to be maintained required under above licence.
9. Information of goods receipt at factory to the bond officer and custom port from said material is cleared – within 30 days of goods receipt. Within 24 hrs if, there is any discrepancy found in goods imported.
10. Inform as and when the machinery installed and ready for use for given intimation to customs.
11. Any replacement of machinery parts use/to be used in machinery covered under the above license will be stored separately in the factory premises.
12. Bond debit by CHA at the time of filing of bill of entry for warehousing, re-credit said bond when the goods received in warehouse and new bond debit by bond officer i.e. Patna Department
13. Inform to Customs for any changes, within 15 days
14. Inform the Custom authority for commencement of commercial production from the machinery.
15. Maintenance of stock register in Annexure -B – Attached (to be signed by Warehouse keeper)
16. Monthly records maintained in Form A and Form-B will be shared with undersigned immediately after close of month for making monthly return.
17. Due date of filing return and stock register is 10th of following month from the date of license.
CONCLUSION:
The MOOWR Scheme is the most beneficial customs initiatives for manufacturers. By allowing the deferment of customs duty on imported capital goods and raw materials, it improves working capital efficiency and reduces the financial burden associated with imports.
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