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.
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:
It’s a flexible, low-risk gateway for foreign firms to test India’s manufacturing ecosystem without massive upfront tax commitments.
For foreign manufacturers, entry into India often stalls due to three hurdles:
MOOWR quietly solves all three.
MOOWR turns compliance from a bureaucratic marathon into a predictable, digital checklist.
| 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.
Setting up under MOOWR isn’t complex — but it demands attention to sequence and documentation.
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.
Submit the combined application to your local Customs Commissioner.
Include:
(Online facility remains open via Invest India portal until 31 October 2025.)
Provide a bond equal to the estimated customs duty liability — this guarantees compliance.
Import capital goods, components, or raw materials without paying any duty upfront.
Start assembly or manufacturing with warehouse keeper supervision.
Use the ICEGATE portal to submit monthly production and stock statements by the 10th of every month.
| 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.
In short, if your operation involves high import content and quick turnaround, MOOWR fits perfectly.
While MOOWR is flexible, it’s still governed by customs law. Missteps can prove costly.
Pro Tip: Hire a compliance partner or warehouse keeper trained in bonded-warehouse operations. Automation can prevent most errors before they occur.
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.
| 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 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.
📞 +91 78350 06182 | 📧 wecare@greenpermits.in
Book a Consultation with Green Permits — your compliance partner for MOOWR licensing, documentation, and warehouse setup anywhere in India.
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.
