Full Form: Manufacturing and Other Operations in Warehouse Regulations
Introduced By: CBIC (Central Board of Indirect Taxes and Customs) in 1996, revamped in 2019.
Purpose: To make India a manufacturing hub and attract foreign investments by deferring customs duties on imported goods used for manufacturing and related activities.
Key Features
- Single Point of Approval: The Commissioner of Customs is the main contact for all approvals.
- Simplified Application: A single application form for licenses and permissions.
- Location Flexibility: Facilities can be set up anywhere or converted into bonded warehouses.
- Digital Record-Keeping: Standardized format for easy management.
- Duty Exemptions: Customs duties on imported materials are deferred; no duties if goods are exported.
- Flexible Clearance Options: Goods can be used domestically, exported, or moved to another bonded facility.
- Monthly Reporting: Regular reports required to maintain compliance.
Benefits
- Deferred Customs Duty: Customs duties are delayed for raw materials and capital goods; exempt if goods are exported.
- No Time Limits: No restrictions on how long goods can be stored.
- Single Approval Contact: Simplifies communication and reduces bureaucracy.
- Easy Transfers: Simplified warehouse-to-warehouse transfers without minimum investment requirements.
Eligibility Criteria
- Licenses Required: Must hold a warehouse license under section 58 of the Act or apply for one.
- Manufacturing Operations: Individuals/businesses must seek permission to conduct manufacturing within the warehouse.
Application Process
- Online Application: Complete the application with Annexure A.
- Bond Submission: Sign and submit a bond to the Jurisdictional Commissioner of Customs.
- License Issuance: After review, the Commissioner grants a license, valid until canceled.
The MOOWR scheme provides a streamlined, advantageous framework for manufacturers in India, promoting ease of business through customs duty exemptions and simplified compliance processes.