Manufacture and Other Operations in Warehouse Regulations
MOOWR Scheme (Section 65 Warehousing Unit)
MOOWR, or Section 65 Warehousing Unit, is a scheme that allows manufacturers to import raw materials and capital goods without paying customs duty upfront. The goods can be stored in a bonded warehouse and used to carry out manufacturing or other operations.
On this page
What MOOWR is
How PORTMATRIX helps
We facilitate the registration of MOOWR License.
MOOWR at a glance
Import without payment of Duty / IGST
Duties are paid only when goods are cleared into the domestic market.
No export obligation
Unlike SEZ, Advance Authorisation or EPCG, there is no mandatory export commitment.
Sell in India or export
Goods can be sold in India as well; exported goods generally remain duty-free.
No time limit for storage
Imported capital goods and inputs can remain in the bonded warehouse without strict time restrictions.
How MOOWR compares with SEZ, Advance Authorisation and EPCG
See the SEZ, Advance Authorisation and EPCG pages for those schemes.
| Feature | MOOWR | SEZ | AA / EPCG |
|---|---|---|---|
| Export Obligation | No | Yes | Yes |
| Domestic Sales Allowed | Yes | Restricted | Restricted |
| Duty | Deferred | Exempted | Exempted |
| Capital Goods Coverage | Yes | Yes | Yes |
| Location Restriction | No | Yes | No |
| GST Benefits | Limited | Strong | Limited |
Legal basis: Section 65 of the Customs Act 1962
Under Section 65 of The Customs Act 1962, companies can convert their factory or warehouse into a Private Bonded Warehouse. The imported goods can be stored and used without immediate payment of:
- Basic Customs Duty (BCD)
- IGST
- Social Welfare Surcharge
- Certain additional duties
Duties are paid only when goods are cleared into the domestic market. Exported goods generally remain duty-free.
Key benefits of MOOWR warehousing
Duty Deferment
Import raw materials and capital goods without upfront customs duty payment.
No Export Obligation
Unlike SEZ, Advance Authorisation or EPCG, there is no mandatory export commitment. Goods can be sold in India as well.
Better Cash Flow
Since duties are deferred, working capital requirements reduce significantly.
No Time Limit for Storage
Imported capital goods and inputs can remain in the bonded warehouse without strict time restrictions.
Suitable for Domestic & Export Businesses
The scheme benefits Manufacturers and Importers / Exporters.
How the MOOWR process works
Apply for Private Warehousing License U/S 58 and MOOWR License U/S 65 simultaneously with the guidance of PORTMATRIX
Import Goods
Store in MOOWR Warehouse
Manufacture / Process
Then, depending on what happens to the goods:
- Sell in India → Duty payable at the time of clearance
- Export finished goods → No Customs duty
Operations allowed in a MOOWR warehouse
Inside a MOOWR Warehouse, businesses can perform:
- Manufacturing
- Assembly
- Packaging
- Labeling
- Testing
- Repairing
- Reconditioning
- Processing
Who can apply
Any Indian entity can apply if:
- It has a warehouse facility
- It obtains:
- Section 58 - Warehouse license
- Section 65 - Manufacturing permission
Existing factories can also be converted into MOOWR units.
Warehousing compliance requirements
MOOWR units must maintain:
- Digital inventory records
- Customs audit trail
- Monthly returns
- Bond execution
- Warehouse security controls
Customs authorities supervise compliance periodically.
Frequently asked questions
- What does MOOWR stand for?
- MOOWR stands for Manufacture and Other Operations in Warehouse Regulations, 2019 under the Indian Customs framework. A MOOWR unit is also called a Section 65 Warehousing Unit.
- Is there an export obligation under MOOWR?
- No. Unlike SEZ, Advance Authorisation or EPCG, there is no mandatory export commitment, and goods can be sold in India as well.
- When is duty payable under MOOWR?
- Duties are paid only when goods are cleared into the domestic market. If finished goods are sold in India, duty is payable at the time of clearance; if they are exported, there is no Customs duty.
- Who can apply for MOOWR?
- Any Indian entity can apply if it has a warehouse facility and obtains a Section 58 warehouse license and Section 65 manufacturing permission. Existing factories can also be converted into MOOWR units.
- What compliance does a MOOWR unit need to maintain?
- MOOWR units must maintain digital inventory records, a customs audit trail, monthly returns, bond execution and warehouse security controls. Customs authorities supervise compliance periodically.