Defer 100% customs duty on your imports — no export obligation, no minimum investment.
The Manufacture and Other Operations in Warehouse Regulations, 2019 — notified under Section 65 of the Customs Act, 1962 — let manufacturers defer duty on imported inputs and capital goods, without tying that benefit to exports or a minimum investment size. It’s one of the most manufacturer-friendly duty structures currently available in India.
Nine structural advantages, each addressing a different part of how manufacturers import, produce, and sell.
BCD on imported inputs and capital goods is deferred at landing — no cash paid out at the port.
IGST that would otherwise hit your books at clearance is deferred until DTA sale, releasing working capital.
ADD, CVD and Safeguard Duty also stand deferred — a key advantage for steel, chemicals and electronics importers.
Unlike EOU, EPCG or Advance Authorisation, MOOWR imposes no export obligation, no NFE requirement, and no minimum value addition.
BCD on imported capital goods stays deferred as long as the asset remains installed and in use. Duty triggers only on physical removal, computed on original CIF value, with no interest even after years.
Available across all states — no geographical clustering, no SEZ-style ring-fencing, no minimum land area requirement.
Existing factories can be converted into Section 65 bonded units without halting production.
Goods can remain bonded for an indefinite period — no rigid storage timeline, unlike standard Section 61 warehousing.
Inputs may be sent for job work to non-MOOWR units under prescribed safeguards, preserving operational flexibility.
Where the deferment applies, at each stage of the goods' journey.
Inputs or capital goods arrive at the bonded MOOWR unit.
BCD, IGST and applicable ADD/CVD are held back, not collected.
Goods are processed or used within the licensed premises.
Finished goods move to the domestic market or are exported.
Payable on DTA clearance; fully written off if exported.
*Illustrative: a manufacturer importing ₹100 crore of inputs annually at ~22% combined duty incidence would otherwise pay that in cash at the port every year.
Under MOOWR, that amount stays inside the business instead — at a 9.5% cost-of-capital assumption, that's over ₹2 crore in pure interest savings annually, before counting the working-capital benefit on the IGST side. We build this out against your real import mix on a call.
Get Your NumberA quick parameter-by-parameter view — talk to us before relying on this for a filing decision.
| Parameter | MOOWR | EOU | SEZ | EPCG |
|---|---|---|---|---|
| BCD on inputs | Deferred | Exempt | Exempt | Payable |
| IGST on imports | Deferred | Exempt (conditional) | Exempt | Payable (creditable) |
| Export obligation | None | Yes (positive NFE) | Yes (positive NFE) | 6× duty saved / 6 yrs |
| Minimum investment | None | ₹1 Cr (P&M) | Sector-specific | None |
| Location restriction | None | None | Notified zones only | None |
| Domestic (DTA) sale | Allowed on duty payment | Allowed, full duty | Treated as import | Allowed |
| Capital goods duty | Deferred till removal; no interest | Exempt (EO-linked) | Exempt | Conditional (EO-linked) |
Indicative only. Actual treatment depends on goods, sector and notifications in force at the time of import.
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