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Understanding the MOOWR Scheme: A Comprehensive Guide

The Manufacture and Other Operations in Warehouse Regulations (MOOWR) Scheme is a significant initiative introduced by the Central Board of Indirect Taxes and Customs (CBIC). Its primary objective is facilitating manufacturing and other operational activities within bonded warehouses. Let’s delve into the details of this scheme:

What is the MOOWR Scheme?

The MOOWR Scheme allows importers to defer duty payments until the removal of goods from the warehouse. It aims to make India a competitive manufacturing hub and an appealing investment destination. Under this scheme, raw materials and capital goods can be imported without immediate payment of duty, provided they are used for manufacturing or other operations within the bonded facility.

Key Benefits of the MOOWR Scheme:

  • Deferred Duty Payment: Importers can delay duty payments until the goods are removed from the warehouse, thus saving working capital.
  • No Bar on Refund: Accumulated input tax credit on exports is not restricted.
  • Duty Deferment on Capital Goods: Capital goods and spare parts can also benefit from deferred duty.
  • Simplified Norms: Unlike Advance Authorisation, there is no need for norms fixation.

Duty Implications:

  •  Clearance for Home Consumption: Duty must be paid when the resultant product is cleared for home consumption.
  • Exported Goods: Duty is exempt if the resultant products are exported.
  • Waste or Scrap: Waste or scrap generated during manufacturing may be cleared for home consumption or exported.
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Application Process:

    • File an application with the Commissionerate of Customs, including relevant documents.
    • Submit a triple-duty bond for the intended manufactured goods.
    • Obtain a warehouse code for each unit under application.
    • Map the warehouse code at every port of import.
    • Submit the triple duty bond at import ports.
    • Provide Standard Input-Output Norms (SION) for each type of finished product.

    In conclusion, the MOOWR Scheme provides a strategic advantage for manufacturers, allowing them to optimize costs, enhance competitiveness, and contribute to India’s growth story. Whether you’re a large corporation or a small business, understanding and leveraging this scheme can significantly impact your operations in the global market. For expert guidance and assistance navigating import-export regulations and maximizing the benefits of schemes like MOOWR, consider partnering with Global Tax Masters – Best Import Export Consultants. Their experienced professionals can provide tailored solutions to streamline your international trade activities and help you stay ahead in today’s dynamic business landscape.

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