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Introduction: The Manufacture and Other Operations in Warehouse Regulations (MOOWR) Scheme, introduced through Notification No. 44/2019-Customs (N.T) dated 19th June, 2019, provides significant benefits to importers by allowing them to defer duty payments until the removal of goods. This comprehensive guide delves into the various aspects of the MOOWR Scheme, including its application process, duty implications, advantages, and disadvantages.

Manufacture and Other Operations in Warehouse Regulations 2019, issued vide Notification No. 44/2019-Customs (N.T) dated 19th June, 2019. This scheme allows importer to defer the duty till their removal. There is following senior for duty implication under this scheme:

1. To the extent of resultant product is cleared for home consumption duty needs to be paid by filling of bill of entry for home consumption

2. To the extent of resultant products is exported duty is exempt in case of removal for export by filling Free Shipping Bill

3. Waste or scrap generated during manufacturing may be cleared for home consumption. Duties needs be paid before removal from factory premises as under:

a. In case of waste or scrap is generated out of domestic sale, duty will be applicable equivalent at the time of such import by filing bill of entry of home consumption

b. In case of waste or scrap is generated out of exported product duty will be applicable on the realisable value of such scrap through manual TR-6 challan.

Detailed procedure is laid down in the Manufacture and Other Operations in Warehouse Regulations 2019.

Application of License

1. Applicant has to file application with Commissionerate of customs with relevant documents such as application forms, factory layout, IEC copy, etc.

2. Applicant has to submit the triple duty bond for the goods intended to be manufactured in such warehouse.

3. Licensee will be allotted warehouse code for each & every unit which are under application

4. Licensee has to make application for mapping of such warehouse code at every port from where import takes place

5. Licensee has to submit the triple duty bond at import ports.

6. Applicant needs to submit the SION for each type of finished products.

Advantages of MOOWR Scheme

1. Duty is deferred till their removals which helps in saving of working capital

2. No bar of refund of accumulated Input tax credit on exports

3. Duty deferment on capital goods & spare parts as well

4. No norms fixation as compared to Advance Authorisation

Disadvantage of MOOWR Scheme

1. Drawback & RODTEP benefits are not allowed to the units operating under MOOWR scheme.

2. Depreciation is not allowed on the capital goods imported under MOOWR scheme

3. Operational difficulties such as filing of ex-bond bill of entries on each supply against the Bill of entry for home consumption

4. Custom EDI systems not properly aligned with this regulation which can cause operational difficulties

5. No such major amendments take place since inception of MOOWR scheme seems lack of clarify on various aspects

6. Duty needs to be paid before removal of goods which can cause holding of dispatches against the finished goods ready to dispatches

7. Lack of awareness of this regulation in various authorities results into future litigations with departments.

Conclusion: The MOOWR Scheme offers importers a valuable opportunity to defer duty payments, thereby facilitating efficient working capital management. While the scheme presents several advantages, such as duty deferment and flexibility in capital goods importation, it also poses challenges, including limitations on benefits and operational complexities. Nonetheless, with careful consideration and adherence to regulations, importers can leverage the MOOWR Scheme to enhance their competitiveness in the global market.


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