Duty deferment on inputs
Basic customs duty and IGST on imported raw material are deferred until finished goods are cleared to the domestic market.
MOOWR · Customs warehousing
MOOWR registration and licence consultant
Import raw material and capital goods without paying customs duty upfront. Aidwish handles your MOOWR application — Section 58 warehouse licence and Section 65 permission together on ICEGATE 2.0 — and sets up the records that keep you compliant after approval.
Section 58 + 65 combined applicationICEGATE 2.0 filingBond & records setupUttar Pradesh & pan-India
In short
MOOWR (Manufacturing and Other Operations in Warehouse Regulations, 2019) lets a unit manufacture inside a customs bonded warehouse and defer import duty on inputs and capital goods. Duty is paid only when goods are cleared into the Indian market, and duty on inputs used in exported goods is remitted. Since CBIC Circular 28/2025, the Section 58 licence and Section 65 permission are applied for together on ICEGATE 2.0. Aidwish prepares the application, bond and record systems.
What MOOWR is
MOOWR full form and how the scheme works
MOOWR stands for Manufacturing and Other Operations in Warehouse Regulations, 2019, framed under Section 65 of the Customs Act, 1962. It allows a business to carry out manufacturing and other operations inside a private bonded warehouse licensed under Section 58. Imported inputs and capital goods brought into the warehouse are not charged customs duty at the time of import; the duty is deferred.
When finished goods made in the warehouse are cleared for the domestic market, duty becomes payable on the imported inputs used in them. When the finished goods are exported, the duty on those inputs is remitted — it is never paid. Imported capital goods attract duty only if and when they are cleared out of the warehouse. There is no export obligation and no restriction on location: a MOOWR unit can sell everything in India, export everything, or do both.
For manufacturers in Uttar Pradesh who import machinery or a significant share of raw material — electronics and electrical goods, engineering, pharma, packaging, textiles and food processing — the cash-flow benefit can be substantial. Money that would otherwise sit in customs duty and IGST until sales happen stays in the business.
The 2025 change: fully online on ICEGATE 2.0
Through Circular No. 28/2025-Customs dated 15 November 2025, CBIC launched an online module on ICEGATE 2.0 for permissions under Section 65. The module offers a combined route for the Section 58 private warehouse licence and the Section 65 MOOWR permission, replacing the earlier route through the Invest India portal and manual filing with the jurisdictional commissionerate. Applications now need to be prepared for the online workflow, including the documents, site plan and declarations it asks for.
Benefits
MOOWR scheme benefits for manufacturers
Duty deferment on capital goods
Imported machinery used in the warehouse attracts duty only if it is cleared out — often never, for long-life plant.
Remission on exports
Duty on imported inputs used in exported goods is remitted, without a separate refund or drawback claim.
No export obligation
Unlike some export schemes, there is no minimum export requirement; domestic sales are fully allowed.
No location limit
The unit can be anywhere, not only in an SEZ or notified zone, subject to the warehouse licence.
Simpler working capital
Lower upfront tax outflow can reduce working-capital loans and interest costs.
Eligibility & process
MOOWR registration process, step by step
- Who can apply
- A person or entity in India intending to manufacture or carry out other operations in a private bonded warehouse; the applicant should not have adverse customs records that bar a licence.
- Licences needed
- A private warehouse licence under Section 58 and permission under Section 65 — now applied for together through the ICEGATE 2.0 module.
- Premises
- The warehouse premises with a defined, secured area, and a site plan identifying where imported goods are stored and processed.
- Bond
- A bond under Section 59 for an amount equal to three times the duty on the goods, in the prescribed format.
- Records
- Digital records of receipt, use, removal and stock of warehoused goods, maintained in the prescribed format and available to customs.
- Approval
- The application is examined by the jurisdictional customs authority, which may verify the premises before granting licence and permission.
- After approval
- Warehousing bills of entry for imports, ex-bond clearance with duty when goods go to the domestic market, and periodic returns.
MOOWR procedures are set by the Regulations and CBIC circulars, which are revised from time to time. We confirm the current circulars and portal requirements for every application.
Know the trade-offs
MOOWR scheme disadvantages and when it does not fit
MOOWR is powerful, but not for everyone. These are the questions we test before recommending it.
Compliance discipline
Every imported item must be tracked from receipt to use and clearance. Weak inventory systems lead to demands and penalties.
Low import share
If imports are a small part of your cost, the cash-flow benefit may not justify the compliance effort.
Domestic clearance duty
Duty is deferred, not waived, for domestic sales; pricing and costing must reflect when it becomes payable.
Bond exposure
A three-times-duty bond and customs oversight need to be planned with your finance team.
What we do
MOOWR consultant services from Aidwish
- Feasibility and savings estimateDuty and interest saving compared with your current import pattern and sales mix.
- ICEGATE 2.0 applicationPreparation and filing of the combined Section 58 and Section 65 application.
- Site plan and premises readinessGuidance on demarcation, security and documentation for verification.
- Bond and undertakingsDrafting of the bond and supporting declarations in the prescribed format.
- Inventory and records setupRecord formats and ERP mapping that meet the Regulations from day one.
- Ongoing complianceReturns, ex-bond clearances, audits and replies to customs queries.
- Conversion and exitMoving existing operations into MOOWR, or surrendering the licence cleanly.
- DisputesReplies and appeals if customs raises demands on warehoused goods.
Timeline
From first call to MOOWR approval
Feasibility
We study your imports, sales mix and premises, and estimate the benefit.
Documents
We collect documents, prepare the site plan and draft the bond.
Filing
We file the combined application on ICEGATE 2.0 and track it.
Verification
We support you through premises verification and queries.
Go-live
We set up records and train your team for the first warehoused imports.
MOOWR in Uttar Pradesh
A MOOWR consultant for Lucknow and UP manufacturers
Most MOOWR advisors sit in Delhi, Mumbai or Chennai. Aidwish works from Lucknow with manufacturers across Uttar Pradesh — in Lucknow, Kanpur, Unnao, Barabanki, Noida and the industrial corridors — and supports units anywhere in India.
Because we also handle customs litigation, GST, MSME finance and subsidies, we look at MOOWR as part of your full cost structure, not as a standalone licence.
- Feasibility before filing — no licence for its own sake
- Combined customs and GST view of the benefit
- Local support during verification
Compare schemes
MOOWR vs EOU, SEZ and Advance Authorisation
Several schemes reduce or defer duty on imported inputs. The right one depends on your export share, location and compliance appetite.
- MOOWR (Section 65)
- Duty deferred on inputs and capital goods; remitted on exports; no export obligation; can be located anywhere with a Section 58 licence.
- EOU
- Export Oriented Units focus on exports and work within a dedicated EOU framework with its own approvals and conditions; suited to export-heavy businesses.
- SEZ
- Units must be located inside a notified Special Economic Zone and operate under the SEZ law; useful for export-focused businesses willing to locate there.
- Advance Authorisation
- Duty-free import of inputs against a specific export obligation under the Foreign Trade Policy; suited to businesses with clear export orders.
- Drawback / RoDTEP
- Refund or remission after export at notified rates; simple, but duty is paid upfront and may not be fully recovered.
We compare the options against your real import and export numbers before recommending a route.
Life after approval
Running a MOOWR unit: what compliance looks like
Once approved, imported goods arrive under a warehousing bill of entry and move to your premises under bond. From then on, the unit maintains a running record of every receipt, issue to production, waste, finished goods produced and every clearance — whether to the domestic market on payment of duty or abroad as an export. Customs relies on these records instead of posting an officer at the gate, which is why their accuracy is the heart of MOOWR compliance.
Domestic clearances are made on an ex-bond bill of entry with duty calculated on the imported inputs contained in the goods cleared. Exports go out on a shipping bill with the duty on the inputs remitted. Periodic returns are filed, and the records are open to audit. Most problems we see in MOOWR units are not about the law — they are about inventory systems that cannot show where an imported item went. We design the record formats and ERP mapping with your team before the first import arrives.
Who handles your matter
Customs warehousing advice led by Devendra Yadav
Devendra Yadav advises on customs, warehousing and export incentives together with GST and finance, so MOOWR is planned around your real numbers and compliance capacity.
Devendra YadavTaxation, Litigation & Regulatory Advisory
- MOOWR feasibility, filing and compliance
- Warehousing under Sections 58 and 65
- Disputes on warehoused goods and clearances
FAQ
MOOWR — questions answered
What is the full form of MOOWR?
MOOWR stands for Manufacturing and Other Operations in Warehouse Regulations, 2019. The scheme operates under Section 65 of the Customs Act, 1962, read with a private warehouse licence under Section 58.
How do I apply for a MOOWR licence?
Since CBIC Circular No. 28/2025-Customs dated 15 November 2025, applications are filed online on the ICEGATE 2.0 module, which provides a combined route for the Section 58 private warehouse licence and the Section 65 permission. The jurisdictional customs authority examines the application and may verify the premises before approval.
What are the benefits of the MOOWR scheme?
Import duty on inputs and capital goods is deferred until goods are cleared into the domestic market, duty on inputs used in exported goods is remitted, and there is no export obligation or location restriction. The main gain is working capital that would otherwise be locked in duty.
Is there any disadvantage of MOOWR?
MOOWR requires strict record-keeping of every imported item, a bond of three times the duty involved and customs oversight. Duty is deferred, not waived, on domestic sales. For businesses with a small import share, the compliance effort may outweigh the benefit.
Is IGST also deferred under MOOWR?
Yes. Imports into the warehouse are not charged customs duty, including IGST, at the time of import; duty becomes payable when the goods or the finished products using them are cleared for home consumption.
Can a MOOWR unit sell in India?
Yes. There is no export obligation. Finished goods can be cleared to the domestic market on payment of duty on the imported inputs used in them.
Do you help with MOOWR in Uttar Pradesh?
Yes. Aidwish is based in Lucknow and works with manufacturers across Uttar Pradesh, and supports MOOWR units anywhere in India.
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