Is MOOWR Suitable for Assembling or Packaging Operations?

Introduction
MOOWR is designed not only for full scale manufacturing but also for lighter operations such as assembling and packaging. The scheme permits a wide range of activities within bonded warehouses.

Permitted Operations
Assembling, packaging, repackaging, labelling, kitting and similar value addition activities are allowed under MOOWR, subject to approval by Customs. These operations must be clearly mentioned in the application.

Use of Imported Inputs
Imported components or finished goods can be brought into the bonded warehouse without upfront payment of customs duty or IGST. These goods can then be assembled or packaged inside the bonded premises.

Duty Treatment
No duty is payable while goods remain in bonded status. Duty becomes payable only when the assembled or packaged goods are cleared into the domestic market.

Export Flexibility
If assembled or packaged goods are exported directly from the bonded warehouse, no customs duty or IGST is payable on the imported inputs used.

Infrastructure and Records
The warehouse must have adequate space, equipment and record systems to track input consumption and finished goods accurately.

No Export Obligation
MOOWR does not impose any export obligation, making it suitable for mixed domestic and export models.

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