MOOWR license allows businesses to defer customs duties on imports used in manufacturing within bonded warehouses, benefiting export-focused companies.
The MOOWR license is part of India's "Manufacture and Other Operations in Warehouse Regulations" under the Customs Act, 1962. It allows businesses to import raw materials and equipment without paying customs duties upfront, as long as these imports are used for manufacturing or other approved activities within a bonded warehouse.
Key benefits include:
Duty Deferment: You only pay customs duties when the finished products leave the warehouse for sale within India. If you export the products, you don’t pay any customs duties at all.
Easy Compliance: There's no time limit on how long you can store goods in the bonded warehouse, and the paperwork is simplified.
Operational Flexibility: You can perform manufacturing, packaging, and other tasks in the warehouse without immediate customs costs.
This scheme is especially useful for businesses focused on exporting, as it helps lower production costs by delaying or avoiding customs duties on imports.
AradhyaExim
Aradhya Export Import Consultant is a professional consulting firm that provides services with respect to Indirect Taxation regarding DGFT Services, Customs Services and GST, as well as Industrial Subsidies from various Government Departments.