A Global Manufacturer’s India Moment
When a German EV battery manufacturer started exploring India, it wasn’t the market that seemed complex — it was the customs maze. Every imported component triggered duties before even reaching production.
That changed when they discovered the MOOWR Scheme — Manufacturing and Other Operations in Warehouse Regulations. Within six months, their Indian warehouse turned into a low-cost export hub.
This is not a one-off success. From electronics to aerospace, foreign OEMs are using MOOWR to build, assemble, and re-export from India without the financial drag of upfront duties.
If your company is evaluating India as a manufacturing or assembly base, understanding MOOWR can save you crores and months of compliance headaches.
Understanding the MOOWR Scheme — Made Simple
Introduced by the Central Board of Indirect Taxes and Customs (CBIC) in 2019, the MOOWR Scheme allows manufacturing or other operations inside a customs-bonded warehouse.
In short:
- You can import raw materials, components, or capital goods duty-free.
- You pay customs duties only when goods are sold in India (deferment without interest).
- Goods that are exported don’t attract any duty at all.
- You keep 100% ownership — no joint ventures or export obligations.
It’s a flexible, low-risk gateway for foreign firms to test India’s manufacturing ecosystem without massive upfront tax commitments.
Why MOOWR is a Game-Changer for Global OEMs
For foreign manufacturers, entry into India often stalls due to three hurdles:
- Heavy import duties and blocked working capital.
- Lengthy approvals under SEZ or EOU schemes.
- Rigid export obligations tied to performance.
MOOWR quietly solves all three.
Business Advantages
- Zero upfront customs and IGST on imports.
- Freedom from export obligations — produce for both Indian and global markets.
- Deferred duty payment only on domestic clearances.
- Unlimited tenure — no expiry or renewal hassles.
- Ideal for assembly, re-export, or pilot operations.
- Full foreign ownership allowed.
Operational Ease
- Apply directly to the Jurisdictional Customs Commissioner (physical or digital).
- Single licence covers both warehousing and manufacturing permissions.
- Maintain digital inventory via ICEGATE portal.
- File a simple monthly return instead of complex annual audits.
MOOWR turns compliance from a bureaucratic marathon into a predictable, digital checklist.
MOOWR vs SEZ vs EOU — Which Suits Foreign Manufacturers?
| Feature | MOOWR | SEZ | EOU |
|---|---|---|---|
| Export Obligation | None | Mandatory (positive NFE) | Mandatory |
| Customs Duty | Deferred / Nil for exports | Nil | Nil |
| Domestic Sale | Allowed on duty payment | Restricted | Restricted |
| Ownership | 100% foreign allowed | SEZ developer norms | Approval-based |
| Tenure | Perpetual | Valid while SEZ approved | 5 years renewable |
| Ideal For | Foreign OEMs, Assemblers, Re-exporters | Export-focused units | Small exporters |
Takeaway: MOOWR offers unmatched freedom — especially for foreign companies testing India’s competitiveness before full-scale investment.
How a Foreign Manufacturer Can Set Up Under MOOWR
Setting up under MOOWR isn’t complex — but it demands attention to sequence and documentation.
Identify and Secure a Site
Any industrial property can qualify as a bonded warehouse — even outside an SEZ.
Ports like Chennai, Mumbai, and Mundra are hotspots due to logistics advantages.
Apply for Warehouse Licence and MOOWR Permission
Submit the combined application to your local Customs Commissioner.
Include:
- Layout and process flow diagram
- Security plan (CCTV, access control)
- Insurance coverage
- Details of imported goods and process description
(Online facility remains open via Invest India portal until 31 October 2025.)
Execute the B-17 Bond
Provide a bond equal to the estimated customs duty liability — this guarantees compliance.
Start Importing and Operating
Import capital goods, components, or raw materials without paying any duty upfront.
Start assembly or manufacturing with warehouse keeper supervision.
Monthly Digital Filing
Use the ICEGATE portal to submit monthly production and stock statements by the 10th of every month.
Clearance Options
- Exports: Zero duty, immediate dispatch.
- Domestic Sales: Duty paid only at the point of clearance.
The Numbers Behind India’s Manufacturing Boom
| Metric | 2023 | 2024 | 2025 (Forecast) |
|---|---|---|---|
| Manufacturing GVA Growth | 8.3% | 9.1% | 10% (NITI Aayog Q2 FY25) |
| Active MOOWR Licensed Units | ~800 | ~1,100 | ~1,500+ (Est.) |
| Avg Duty Deferment per Unit | ₹2–8 Cr annually | – | – |
Interpretation: The number of MOOWR-licensed units has nearly doubled since inception. Global OEMs are clearly seeing India not only as a consumption market but as an export-capable production base.
Industries Seeing Maximum MOOWR Adoption
- Automotive & EV components — import of kits, battery cells, drivetrains.
- Electronics & Semiconductors — PCB assembly and testing.
- Aerospace & Defense parts — simplified bonded structure for exports.
- Renewable Energy Equipment — solar modules, turbine hubs.
- Pharma & Medical Devices — raw material imports under strict compliance.
In short, if your operation involves high import content and quick turnaround, MOOWR fits perfectly.
Regulatory Clarity in 2025
- Circular 19/2025 (Sept 2025): Confirms online MOOWR applications allowed till 31 Oct 2025.
- Circular 26/2024: Clarifies that MOOWR and IGCR Rules 2022 can be availed simultaneously.
- Mandatory Digital Record-Keeping: Every bonded manufacturer must maintain electronic inventory under Regulation 12.
- No Interest on Deferred Duties: Duty deferment remains interest-free — a massive liquidity advantage.
Understanding Risks and Compliance Safeguards
While MOOWR is flexible, it’s still governed by customs law. Missteps can prove costly.
Common Non-Compliance Risks
- Missing monthly returns → penalties up to ₹50,000.
- Unrecorded goods movement → confiscation under Section 72.
- Inaccurate bond value → licence suspension or forfeiture.
- Failing to maintain digital records → fines and audit flag.
Pro Tip: Hire a compliance partner or warehouse keeper trained in bonded-warehouse operations. Automation can prevent most errors before they occur.
How a Korean EV Brand Saved ₹6 Crore
A Korean EV cell manufacturer began a small assembly unit in Tamil Nadu under MOOWR.
Instead of paying 28 % duty on each imported cell, they warehoused them duty-free, assembled packs, and exported to Southeast Asia. Within a year, they had saved ₹6 crore in working capital — without violating a single compliance rule.
This is the power of deferred duty — efficiency without risk.
Financial & Strategic Benefits at a Glance
| Category | Benefit | Business Impact |
|---|---|---|
| Customs Duty | Deferred until domestic sale | Better cash flow |
| IGST | Waived until clearance | No blocked input tax |
| Tenure | Perpetual | Long-term certainty |
| Ownership | 100 % foreign allowed | No local JV needed |
| Export Obligation | None | Produce for both markets |
| Audit Complexity | Minimal | Monthly digital filing only |
Interpretation: The MOOWR model aligns perfectly with modern, agile manufacturing — especially for global companies that plan to scale exports once demand grows.
India’s Manufacturing Future is Open — Don’t Miss the Window
India’s industrial policy now rewards early movers who localize efficiently. With MOOWR, foreign manufacturers gain the same fiscal edge as Indian exporters — without losing ownership or flexibility.
Whether you’re assembling EV components, circuit boards, or medical devices, the next 12 months offer a unique window.
By 31 October 2025, when the digital MOOWR portal closes, hundreds of global OEMs will already have bonded units operational. Don’t let red-tape hesitation cost you a year of growth.
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FAQs
Yes. Either through a 100 % Indian subsidiary or an authorized project office registered with the RBI.
No. MOOWR has no minimum investment limit, making it ideal even for pilot plants.
Yes. MOOWR can operate alongside IGCR Rules 2022 and Production Linked Incentive schemes, depending on product category.
No export obligation exists — you can sell entirely in India (on duty payment) or re-export.
Usually 4–6 weeks once documentation and site verification are complete.
