Step-by-Step Guide to Apply for MOOWR License in India

If you’re an Indian manufacturer or importer struggling with blocked capital due to customs duties, there’s good news. The MOOWR Scheme (Manufacture and Other Operations in Warehouse Regulations, 2019)—not just another incentive, but a real working-capital relief mechanism—continues to be one of the most effective customs programs for domestic manufacturers in 2025.

With the recent CBIC Circular 19/2025, businesses can still apply online through the Invest India portal until 31 October 2025, keeping the process 100% digital.
Let’s explore exactly how to apply for your MOOWR license step by step, what documents you’ll need, and what compliance standards CBIC expects once you’re approved.

Understanding the MOOWR License

The MOOWR License gives manufacturers or processors permission to operate inside a customs bonded warehouse without paying import duty upfront.

It merges two key approvals:

• Section 58 of the Customs Act, 1962 – to license your premises as a bonded warehouse.
• Section 65 of the same Act – to carry out manufacturing or other operations in that warehouse.

This combination lets you import raw materials, components, or machinery duty-free, store or process them, and pay duties only when the goods are cleared into the domestic market.
There’s no export obligation and no time limit on how long you can store goods.

Think of it as your business’s personal “duty-free factory”.

Why MOOWR Matters in 2025

Since its introduction, MOOWR has become a cornerstone of India’s Make in India and Ease of Doing Business strategy. For manufacturers and importers, the benefits go far beyond duty savings:

• Cash-flow efficiency – duties are deferred, not paid upfront.
• Simplified exit – no long-term lock-in or export conditions.
• Zero interest – CBIC confirms that no interest applies on deferred duties.
• Customs control – your warehouse remains part of the Customs system but operations are self-managed.
• Reduced working capital – according to Grant Thornton (2022), many SMEs saw a 15–25% improvement in liquidity after opting for MOOWR.

Here’s the catch: starting November 2025, the CBIC may shift to a new filing mechanism. So, if you plan to apply, do it now through the Invest India portal before 31 October 2025.

Legal Framework & CBIC Guidelines

MOOWR isn’t a tax holiday scheme—it’s a legal deferral framework under the Customs Act. The key regulations shaping it are:

Circular / Notification	Key Provision	Effective Status (Oct 2025)
Notification No. 69/2019-Cus (N.T.)	Introduced MOOWR (No. 2) Regulations, 2019	Active
Circular No. 34/2019-Cus	Prescribes combined application & records (Annexures A & B)	Active
Circular No. 18/2025-Cus	Temporary email filing (now withdrawn)	Superseded
Circular No. 19/2025-Cus	Continues online Invest India portal till 31 Oct 2025	Latest & in force

In simple terms, the 2025 circular is your green signal to continue applying digitally, without shifting to manual email-based routes.

Who Is Eligible to Apply

CBIC has kept the eligibility criteria deliberately broad. You can apply for a MOOWR license if you fall under any of these categories:

• Indian manufacturers importing raw materials or capital goods.
• Units engaged in assembly, testing, packaging, or repair operations.
• 100% domestic manufacturers who want to defer duty even without exports.
• Businesses in SEZs, FTZs, or independent industrial clusters planning to warehouse under customs control.
• Importers or traders seeking to convert their premises into bonded facilities for inward processing.

There’s no turnover threshold or export ratio requirement—making MOOWR accessible even for MSMEs.

Documents Required for MOOWR License Application

Before you log in to the portal, prepare these documents carefully. Missing any of them could delay processing:

1. GST registration certificate of your business.
2. Import Export Code (IEC) issued by DGFT.
3. PAN of the entity and authorized signatory.
4. Company registration documents (Partnership Deed, ROC Certificate, etc.).
5. Factory layout plan, showing clear demarcation between bonded and non-bonded areas.
6. Ownership proof or rental agreement for the premises.
7. Fire-safety certificate and basic structural stability certificate.
8. No-objection certificate from local municipal or industrial authority.
9. Security and record-keeping undertaking (as per Annexure B of Circular 34/2019).
10. List of imported goods (raw materials, components, capital goods) with HS Codes.
11. Board resolution authorizing a responsible officer to sign and act on behalf of the company.

Tip: Use the same email ID for DGFT and CBIC registrations—it simplifies verification and speeds up online approvals.

Step-by-Step Online Application Process (Invest India Portal)

Even though the MOOWR process sits under CBIC, the digital filing happens through the Invest India Bonded Manufacturing Portal.

Follow this flow:

1. Go to bonded.indiainvestmentgrid.gov.in
   → Click on “Apply Now” under the Bonded Manufacturing section.
2. Register or log in using your business PAN, company name, and contact details.
3. Choose Application Type: Combined application for Section 58 (warehouse license) and Section 65 (manufacturing permission).
4. Fill Annexure A online: This includes:
   • Company and premises details
   • Import and product data
   • Security arrangement summary
   • List of directors and signatories
5. Upload documents in PDF format (≤5 MB per file).
6. Submit Form: Once submitted, the portal auto-forwards your application to the jurisdictional Commissioner of Customs based on your address.
7. Inspection Stage: The customs officer may visit to verify site security, layout, and readiness.
8. Bond Execution: You’ll be asked to execute a security bond (either bank guarantee or cash deposit) equal to the deferred duty value of your initial imports.
9. Approval & Digital License: After review, you’ll receive a digitally signed approval letter via email and portal dashboard.
10. Start Operations: Maintain inventory as per Annexure B and begin importing under deferred duty.

Preparing Your Site for Inspection

A common reason for delay is non-compliance with basic site standards. Before scheduling inspection:

• Segregate bonded vs. non-bonded areas with physical barriers or signage.
• Install CCTV cameras covering entry, storage, and processing zones.
• Keep access control systems or manual visitor logs.
• Label storage racks clearly with item codes and batch numbers.
• Maintain an inventory management system—even Excel is acceptable, but ERP integration helps.
• Provide fire extinguishers, emergency exits, and documented SOPs.

When the customs officer sees a compliant setup, your approval time drops from 45 days to under 25 days in many cases.

Post-Approval Compliance Obligations

Once licensed, your responsibilities don’t stop. CBIC expects transparent reporting under Annexure B of Circular 34/2019.

Compliance Item	Frequency	Reporting Platform	Remarks
Maintain digital records (Annexure B format)	Continuous	Local ERP or Excel	Keep for 5 years minimum
Monthly stock and movement returns	Monthly	ICEGATE Warehouse Module	Upload by 10th of next month
Annual audit & reconciliation	Yearly	Local customs office	May include site visit
Duty payment on DTA clearances	As required	Bill of Entry via ICEGATE	Full duty + GST applicable
Surrender of license (if any)	On closure	Written intimation	Ensure all duties discharged

Failure to maintain these records or delays in filing may lead to suspension under Section 73A of the Customs Act.

Duty Deferment: The Financial Advantage

Let’s translate this into business language.
Suppose you import capital goods worth ₹50 lakh with a 20% effective customs duty.

Particulars	Without MOOWR	With MOOWR	Benefit
Upfront duty payment	₹10,00,000	₹0 (deferred)	₹10,00,000 saved
Interest cost (10% for 6 months)	₹50,000	₹0	₹50,000 saved
Compliance cost	—	₹50,000 (annual)	Still net positive
Cash available for operations	₹40,00,000	₹50,00,000	+25% liquidity

The real takeaway? MOOWR doesn’t give you a subsidy—it gives you time and liquidity, which can be reinvested to expand production or manage imports efficiently.

Penalties and Compliance Risks

The MOOWR framework is flexible but comes with accountability. Violations can lead to serious consequences:

Non-Compliance	Possible Consequence
Late payment of duty on domestic clearance	Interest + penalty up to ₹50,000
Unauthorized removal or sale of goods	Confiscation and duty recovery under Section 72
Failure to maintain Annexure B records	Suspension or cancellation of license
Non-submission of monthly returns	Show-cause notice and possible bond forfeiture
Using the bonded premises for third-party storage	License revocation and fresh penalty proceedings

In short, MOOWR is low-risk for compliant businesses but can turn punitive if procedures are ignored.

Operational Tips from Compliance Experts

Over the years, customs officers and DGFT consultants have shared a few practical insights that can help you maintain a spotless MOOWR record:

• Start small: Apply for one bonded area first; expand later after operational comfort.
• Use digital documentation: Upload every return, bill, and stock report to ICEGATE for traceability.
• Train your staff: Most MOOWR breaches happen due to data-entry or filing delays.
• Synchronize with GST: Keep bonded goods excluded from outward supply filings to avoid mismatched invoices.
• Conduct internal audits: Quarterly checks help ensure you never receive an unexpected compliance notice.

Integrating MOOWR with Broader Compliance

MOOWR is just one part of a modern manufacturing compliance framework. Most Green Permits clients also integrate other essential authorizations to keep operations seamless:

• EPR Authorization — For producers, importers, or brand owners generating waste (electronics, packaging, batteries, etc.).
• BIS Certification — Required for certain electronics, chemicals, or consumer goods before sale in India.
• Recycling Plant Setup — Complements MOOWR for companies investing in circular production models.

When combined, these create a “Green Manufacturing Ecosystem” — compliant, sustainable, and profitable.

Why You Should Apply Before October 31, 2025

The CBIC Circular 19/2025 explicitly states that the Invest India portal remains live only until 31 October 2025.
After that, CBIC may migrate to a manual or hybrid system requiring additional filings.

Applying now ensures:

• A digital, paperless application route.
• Faster turnaround with auto-routing to your Commissioner.
• No disruption due to system transition.

Early applicants also get the advantage of established workflow templates and recognized documentation structures that customs officers are already familiar with.

Conclusion — Simplify Compliance, Strengthen Cash Flow

Applying for a MOOWR license in 2025 isn’t just about avoiding upfront duties—it’s about restructuring your supply chain for efficiency.

By registering through the Invest India portal and following CBIC’s latest circulars, your business can unlock a smoother, cash-positive manufacturing cycle—without worrying about export obligations or duty refunds.

The bottom line:
Apply early, prepare your documents properly, and treat MOOWR as a compliance-driven financial advantage.

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