The Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 (‘MOOWR Scheme’)

To promote and boost ‘Make in India’ initiative, the Central Board of Indirect Taxes and Customs (‘CBIC’) had introduced ‘The Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 (‘MOOWR Scheme’) which allowed import of inputs and capital goods without payment of Customs duty for the purposes of carrying out manufacturing and other operations in a private bonded warehouse .

The CBIC has prescribed eligibility criteria, operations, procedure and compliances to be followed by the Licensed unit in accordance with Section 58 and Section 65 of the Customs Act 1962. The following are the Salient features of the MOOWR Scheme as highlighted by CBIC:

1. No geographical limitation on where such units can be set up.

2. A single application cum approval form for uniformity of practice with a single point of approval to set up the operations of such units.

3. Improved liquidity with deferment of import duty and no interest liability.

4. Allows procurement of GST compliant goods from the domestic market for use in manufacture and other operations in a Section 65 unit.

5. A single digital account for ease of doing business and easy compliance.

6. Enables efficient capacity utilisation, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.

As on date, following documents in relation to MOOWR scheme are available in public domain:

1. Notification No. 69/2019-Customs (Non-Tariff) dated 01 October 2019;

2. Circular No. 34/2019- Customs dated 01 October 2019;

3. Circular No. 48/2020-Customs dated 27 October 2020; and

4. Frequently Asked Questions on MOOWR Scheme dated 27 October 2020.

We have provided a snapshot of the MOOWR Scheme as under.

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MOOWR,2019

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