Introduction
Yes, finished goods can be stored in bonded status under the MOOWR scheme. The scheme allows goods resulting from manufacturing or other approved operations to remain in bond until they are cleared.
Bonded Storage of Finished Goods
Finished goods manufactured using imported inputs inside a MOOWR warehouse may continue to remain in the bonded area without immediate payment of customs duty. This provides flexibility in inventory and cash flow management.
No Mandatory Time Limit
There is no fixed time limit for storing finished goods in bonded status under MOOWR. Goods can remain in the warehouse until they are sold domestically or exported.
Duty Implication on Clearance
Customs duty becomes payable only when finished goods are cleared into the domestic market. If the finished goods are exported, no customs duty is payable on the imported inputs.
Record Keeping Requirement
Proper records must be maintained showing conversion of inputs into finished goods and their storage in bonded status. Stock records should clearly distinguish finished goods from raw materials.
Customs Control and Verification
Finished goods stored in bond remain under customs supervision and may be subject to audit or verification.
Conclusion
Storing finished goods in bonded status under MOOWR offers significant flexibility and duty deferment benefits, making the scheme attractive for manufacturers and importers.
Learn more about MOOWR scheme at https://www.jparks.co/services/apply-for-moowr-scheme/.
