MOOWR Scheme
Duty Deferment with a Long-Term Disadvantage
MOOWR Scheme India | Duty Deferment under Manufacture and Other Operations in Warehouse Regulations 2019 | Sohamma | Learn about the MOOWR Scheme (Manufacture and Other Operations in Warehouse Regulations, 2019). Get expert insights on benefits, disadvantages vs. EOU/EPCG, and policy recommendations by Sohamma International.
Introduction to MOOWR Scheme
The MOOWR Scheme (Manufacture and Other Operations in Warehouse Regulations, 2019) was introduced by the Government of India to facilitate duty deferment for importers and manufacturers. The scheme allows businesses to import raw materials and capital goods (CG) without upfront payment of customs duties, with duty deferred until the goods are cleared for home consumption.
While MOOWR initially appears highly beneficial for industries seeking liquidity relief, exporters must be aware of its long-term disadvantages compared to the Export Oriented Unit (EOU) Scheme.
MOOWR vs. EOU – Key Comparison
- EOU Scheme: New and used capital goods imported duty-free can be retained over a 10-year block, with “NIL” duty payable if the unit is Net Foreign Exchange (NFE) positive.
- MOOWR Scheme: Customs duty on imported capital goods is only deferred. After 10 years (at the time of removal, scrap, or debonding), full duty is payable, even if exports have been achieved.
- Re-export the capital goods – often impractical for manufacturers.
- Continue warehousing indefinitely – financially and operationally unviable.
- Introduce depreciation-based payment of duty on capital goods under MOOWR (similar to existing provisions in EOU).
- Continue promoting the tried and tested EOU Scheme, which already has an established framework.
- Make debonding rules more flexible and practical for exporters.
- Position EOU as the preferred long-term scheme for capital goods importers.
- Allow import of second-hand capital goods under EPCG.
- Relax Annual Export Performance (AEP) conditions which currently discourage higher exports.
- Permit exports from any unit under the IEC of the EPCG holder to count towards export obligation.
- MOOWR Scheme India
- Manufacture and Other Operations in Warehouse Regulations 2019
- MOOWR vs EOU Scheme
- Duty Deferment Scheme for Capital Goods
- Customs Duty Deferment under MOOWR
- MOOWR disadvantages for exporters
- EPCG vs MOOWR vs EOU
- Policy relaxation for MOOWR
- DGFT MOOWR guidelines
- ✅ Advisory on MOOWR scheme eligibility and compliance.
- ✅ Comparative evaluation of MOOWR vs. EOU vs. EPCG.
- ✅ Strategic advisory for capital goods importers to minimise long-term duty liability.
- ✅ Representation before DGFT and Customs authorities for policy relaxations.
