The MOOWR scheme was introduced by CBIC to defer payment of Customs duties on imported goods used for the intended purposes of manufacture or carrying out other activities. Particularly aimed at transforming India into a competitive manufacturing location and an attractive investment destination, this prescribed clear and transparent procedures under Section 65 of the Customs Act of 1962, simplified compliance with documentation requirements, and digital record maintenance.

The salient features of the MOOWR scheme are:
1) Simplified approvals: The jurisdictional Commissioner of Customs is the single point of approval under the scheme. A single application-cum-approval form has been prescribed for use by both the applicants and Customs. The license granted under the scheme remains valid without the need for renewal, till it is surrendered or cancelled. The approval is quickly given after antecedent verification, one-time verification site, and execution of bond with insurance policy.

2) Types of businesses covered: Any business wanting to undertake manufacture or any other activity can apply under the scheme. Existing businesses can also apply.

3) Sourcing of capital goods and inputs: The scheme provides flexibility in sourcing of capital goods as well as inputs. The capital goods and inputs can be sourced through imports or domestic market or even from SEZ/ FTWZ.

4) Full flexibility in clearance of finished goods: The goods produced under the scheme can be exported or cleared to domestic market as per demand. No export obligation is prescribed.

5) Duty benefits: MOOWR is a duty deferment scheme and not a duty exemption scheme. The duty on both imported capital goods and inputs stands deferred till their clearance from warehouse. In case of clearance of capital goods to DTA, deferred duties will become payable. In case of clearance of finished goods into DTA, GST on finished goods along with import duties on imported inputs are payable. The GST as well as the IGST paid as part of import duties will be available as credit. In case of export of capital goods or finished Goods, the duty on imported inputs stands remitted. Also, zero rating of tax on domestic inputs is allowed.

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