Manufacturing and Other Operations in Warehouse Regulations

Manufacturing and Other Operations in Warehouse Regulations (MOOWR)

The Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme, introduced by the Central Board of Indirect Taxes and Customs (CBIC) in 1996 and revamped in 2019, stands as a strategic initiative to propel India's manufacturing prowess. This article provide you information about MOOWR scheme, and the essential role of Interlink Capital in facilitating businesses through its services.

What is the MOOWR Scheme?

MOOWR stands for Manufacturing and Other Operations in Warehouse Regulations. It offers a simplified approval process for foreign businesses to conduct manufacturing operations within bonded warehouses in India. The scheme aims to bolster the Make in India campaign by deferring customs duties on imported goods utilized for manufacturing or related activities within these warehouses.

Key Features of the regulations:

Businesses that attain AEO certification enjoy a range of benefits, including:

1. Deferred Duty on Capital Goods:

  • No import duty till clearance of goods in domestic market
  • No import duty if goods re-exported

2. Deferred Duty on Raw Material:

  • No import duty till clearance of goods in domestic market
  • No import duty if goods re-exported
  • No prior permission /intimation required

3. Seamless warehouse to warehouse transfer:

  • Duty free transfer of goods from warehouse to warehouse

4. No export obligation:

  • No fixed export obligations
  • No limit on domestic clearance even 100% domestic clearances

5. Seamless warehouse to warehouse transfer:

  • New manufacturing facility can be set up anywhere
  • Existing facility can be converted into a bonded manufacturing facility

Benefits for Manufacturers:

Under the MOOWR system, manufacturers can delay paying duties on imported raw materials, choose where to locate their warehouses, transit goods between warehouses with ease, and there are no minimum investment requirements.

How Interlink Capital help you?

Our proficiency in customs and indirect tax advising services allows us to help clients comprehend eligibility requirements, navigate application procedures, and guarantee scheme compliance. We enable companies to take full advantage of the MOOWR plan when they engage in manufacturing in India.

Frequently Asked questions [FAQs]:

⭐ What is the purpose of the MOOWR Scheme?

The main goal of the MOOWR program is to position India as a center of manufacturing and a desirable location for foreign investment. It seeks to expedite the approval procedure for international companies to set up production facilities inside bonded warehouses, supporting local production and economic expansion in the process.

⭐ What are the eligibility criteria for the MOOWR Scheme?

Individuals or any type of businesses can register for the MOOWR scheme if they meet the following eligibility criteria:

  • Holding a license for a warehouse under section 58 of the Act, in compliance with the Private Warehouse Licensing Regulations, 2016.
  • 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.

⭐ What services does Service Interlink Capital provide related to the MOOWR Scheme?

Interlink Capital offers consultation and assistance for businesses seeking to avail themselves of the MOOWR scheme. Their services may include guidance on eligibility criteria, application procedures, compliance requirements, and ongoing support for businesses operating within the scheme.