Can E Commerce Businesses Use the MOOWR Scheme?

Introduction
MOOWR is commonly linked with manufacturers and warehouses, but it can also be useful for certain e commerce business models. Eligibility depends on how goods are stored and cleared.

Eligibility for E Commerce Operators
E commerce businesses that import goods in bulk and store them before sale can use MOOWR through a bonded warehouse. The goods must be imported into the bonded premises and remain under customs control.

Storage and Order Fulfilment
Goods can be stored in bonded status while orders are processed. Activities such as sorting, packing, labelling and order preparation may be permitted with customs approval.

Duty Payment on Sale
Customs duty and IGST are paid only when goods are cleared from the bonded warehouse into the domestic market for final delivery to customers. This improves cash flow by avoiding upfront tax payment.

Export Orders
If e commerce goods are exported directly from the bonded warehouse, no customs duty or IGST is payable on the imported goods.

Compliance and Systems
Strong inventory systems are required to track item level movement and ensure accurate duty payment at the time of clearance.

Limitations to Note
Retail sale directly from the bonded warehouse is not permitted. Goods must be cleared into home consumption before delivery.

Conclusion
E commerce businesses can benefit from MOOWR if they operate bulk import and warehousing models, offering duty deferment and inventory flexibility with proper compliance.

Learn more about MOOWR scheme at https://www.jparks.co/services/apply-for-moowr-scheme/