Can a Logistics Company Use MOOWR to Store and Process Goods for Clients?

Introduction
MOOWR is often associated with manufacturers, but it can also be relevant for logistics and warehousing companies. The key factor is the nature of operations carried out in the bonded warehouse.

Eligibility of Logistics Companies
A logistics or warehousing company can apply for MOOWR if it operates a bonded warehouse and undertakes permitted activities such as storage, packing, labelling, sorting or other approved operations on imported goods.

Processing for Clients
MOOWR allows carrying out authorised operations on goods belonging to clients, provided Customs permission covers such activities. The goods remain under bonded status during storage and processing.

No Export Obligation
There is no requirement that goods must be exported. Clients may choose to export or clear goods into the domestic market based on business needs.

Duty and IGST Deferment
Customs duty and IGST are deferred while goods remain in the bonded warehouse. Duty becomes payable only when goods are cleared for domestic consumption.

Record and Control Requirements
The logistics company must maintain detailed client wise inventory records and ensure clear segregation of goods to maintain traceability.

Customs Oversight
Customs may audit operations to ensure goods are not diverted and records are accurate.

Conclusion
A logistics company can use MOOWR to store and process client goods, provided operations are approved and compliance controls are strong, making it a flexible solution for value added warehousing services.

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