MOOWR
Duty-free imports under schemes like MOOWR provide significant strategic benefits to businesses.
It impacts their operations, supply chain, and competitiveness in multiple ways.
The most direct impact is lowering the cost of inputs and capital goods. By not paying import duties, manufacturers save substantially on raw material costs. They also save on the cost of imported machinery and equipment.
By eliminating duties, the cost disadvantage faced by domestic manufacturers gets reduced. They can be on par with competitors importing finished goods duty-free under free trade agreements.
Key Tenets of India’s MOOWR initiative
- Unpacking the core benefits under MOOWR scheme to explore the manufacturing potential:
- Deferment of duty on imported raw-material & capital goods;
- Exemption/Waiver of deferred duty on export of Finished goods;
- No Fixed Export Obligations;
- No requirement of Bank Guarantee;
- Self-appointed warehouse keeper and no physical control by “Bond officer”
- Single, unified application form;
- Unlimited period of duty deferment for manufacturing or other operations
- No time-limit for export/home consumption (except for trading activity)
- No geographical restrictions on where such units can be set up
- Improved liquidity with deferment of import duty and no interest liability.
- No Investment threshold;
- Allows procurement of GST compliant goods from the domestic market for use in manufacture and other operations in a Section 65 unit.
- Enables efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market;
- Flexible clearance options;
- Once granted, the MOOWR license is valid until it is cancelled or surrendered.