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Duty expenses can be a significant drain on working capital for businesses, especially if they work with imported raw materials or finished goods. Every rupee tied up paying duties is a rupee that can’t be invested in growth, innovation, or simply day-to-day operating. That’s where the MOOWR (Manufacture and other Operations in Warehouse Regulations) scheme can help. By allowing a business to defer the payment of duties, MOOWR scheme can improve cash flow and smooth the operation of warehouses; MOOWR scheme is becoming an increasingly attractive option for businesses throughout India. In this blog, we’ll explain how the scheme actually works, what benefits it provides, and how businesses can maximize the scheme.
What is the MOOWR Scheme?
The MOOWR scheme (Manufacture and Other Operations in Warehouse Regulations) enables companies to store, manufacture, or process imported products in the warehouse without the customs duty being payable upfront. The duty liability on the imported products is only triggered when the goods are cleared for domestic consumption; goods that are exported are exempt from duties.
This offers businesses the required flexibility to manage inventory, plan production schedules, and optimize cash flow. The scheme is administered by the Central Board of Indirect Taxes and Customs (CBIC) and is part of India’s overall objective to enhance trade facilitation, minimize operational clogging, and make it easier to do business.
Who Can Avail MOOWR?
- Eligible Businesses: Manufacturers, traders, and operators of warehouses importing goods for processing or warehousing.
- Types of Goods Covered: Raw materials, semi-finished products, or finished goods permissible for gathering under the Customs law in India
- Requirements: Businesses must be registered with the Customs authorities with a license for warehousing, and have proper documentation and reporting as required by compliance.
- Scalability: MOOWR isn’t reserved for larger corporations; SME’s or start-up operations can take advantage of the opportunity offered by having structured warehouse operations.
Key Benefits of MOOWR Scheme for Businesses
- Duty Savings: Importers do not have to pay customs duties upfront, resulting in significant cost savings and improved cash flow management.
- Boosts Cash Flow: Delayed obligation to pay duties translates into working capital that can be used for business expansion, technology, or operational improvements.
- Inventory Management: Goods may arrive at the MOOWR facility, be stored, processed, or manufactured without being sold or delivered for export without added expenses on inventory.
- Streamlined Compliance: MOOWR reduces compliance-related paperwork and procedural requirements compared to standard imports and domestic clearance, thereby minimising risks of non-compliance.
- Operational Flexibility: MOOWR provides importers with flexibility to adjust quickly and efficiently to changing market demands without exposure to the cash flow risks of paying duties prior to the import of goods.
Integration of MOOWR Scheme with FTWZ
For businesses looking to fully optimize imports, warehousing, and manufacturing, MOOWR can be strategically integrated with FTWZ (Free Trade & Warehousing Zones). FTWZs are specially designated zones designed to facilitate international trade by providing duty exemptions, simplified procedures, and value-added services like packaging, labeling, and quality checks.
By combining MOOWR and FTWZ, businesses can store and process goods in an FTWZ warehouse under MOOWR regulations, deferring duty payments until the goods are cleared for domestic use. Exports from the zone remain duty-free, offering maximum flexibility.
Key Benefits of Combining MOOWR and FTWZ:
Increased Duty Savings: Businesses can delay payment of customs duty while utilizing the benefits of FTWZ, such as exemptions from GST and other taxes.
Better Cash Flow: Allows capital to remain free for longer, giving companies additional flexibility to expand operations or meet working capital needs.
Simplified Logistics: Processing, assembly and value added operations can be completed within the FTWZ, thus saving time and costs associated with transportation.
Operational Flexibility: Businesses are able to obtain the required changes to respond almost immediately to domestic or international demand resets without worrying about upfront costs of duties. Also know which warehouse stands out as the best option for your imports.
Conclusion
The MOOWR scheme is more than just a duty deferment tool—it’s a strategic way for businesses to optimize cash flow, streamline warehouse operations, and maintain operational flexibility. When integrated with FTWZ, the benefits multiply, offering increased duty savings, smoother logistics, and the freedom to respond quickly to market demands.
For manufacturers, traders, and SMEs alike, leveraging MOOWR—either on its own or in combination with FTWZ—can unlock significant financial and operational advantages. By planning imports carefully, maintaining proper compliance, and strategically using warehouse operations, businesses can transform duty payments from a cash flow burden into a competitive advantage.
Embracing MOOWR and FTWZ isn’t just about saving money—it’s about creating smarter, more agile, and future-ready supply chains.