MOOWR scheme – When to opt, benefits, challenges and opportunities

In recent years, the Government has sought to clarify several aspects of the MOOWR scheme (Manufacturing and Other Operations in Warehouse Regulations, Section 58 & 65 of the Customs Act, 1962) and to simplify the process of obtaining a licence under it. 

MOOWR scheme permits deferment of customs duty on imported capital goods and inputs. An industry planning a new plant or an expansion involving imported goods must evaluate the indirect-tax schemes available and select the one best suited to its needs. This session examines when an industry should opt for a Private Bonded Warehouse licence with manufacturing permission (MOOWR scheme), and takes a close look at the benefits, challenges, and opportunities of operating under this model. 

Key topics

• Comparison of MOOWR with other schemes

• Eligibility, licensing, and setting up a Section 65 bonded unit

• Duty deferment on capital goods vs. imported inputs — how each behaves

• Impact of Notification No. 86/2024-Cus (N.T.) and pending issuance of Notification under Section 65A

• Classification pitfalls: capital goods, spares, and consumables

• Eligibility for Service Industry

• Record-keeping, compliance, and audit exposure

• Recent Judicial pronouncements on the scheme

Speakers -

T. Viswanathan, Principal Partner and Country Head Customs
Ratan Jain, Executive Partner, LKS
Saurabh Malpani, Partner, LKS