A 3PL MOOWR unit is possible, but the structure matters far more than most guidance admits. Section 65 of the Customs Act, 1962 permits the owner of warehoused goods to carry on manufacturing or other operations in the warehouse in relation to those goods, with the Commissioner’s permission.
That wording shapes everything. A 3PL holding a client’s stock as a custodian is not the owner of the goods, and Section 59 requires the owner of the warehoused goods to execute the triple duty bond.
Three provisions point the same way. Section 58 licenses a private warehouse wherein dutiable goods imported by or on behalf of the licensee may be deposited. Section 65 permits operations by the owner of the warehoused goods. Section 59 places the triple duty bond on that owner.
MOOWR was designed for a manufacturer who imports goods, warehouses them, works on them, and clears or exports the resultant goods. It was not designed as a multi-client bonded storage product.
Chapter IX provides three warehouse types. A public warehouse under Section 57 is licensed to hold goods deposited by others, and is the traditional home of multi-client bonded storage, operated by entities such as CWC and CONCOR.
A private warehouse under Section 58 holds goods imported by or on behalf of the licensee. Section 65 permission attaches only to a Section 58 private bonded warehouse. Manufacture and other operations are not available in a Section 57 public warehouse.
A logistics provider can still run a 3PL MOOWR unit, provided the ownership and bond positions are correct:
Which route fits depends on who takes title, who bears the duty liability, and who signs the bond. Get that wrong and the structure is exposed.
Where a 3PL is the licensee in its own right, the obligations are the same as for any Section 65 unit. Regulation 8 requires facilities, equipment, and personnel sufficient to control access and provide secure storage. A fully enclosed structure is not mandated.
A warehouse keeper with experience in warehousing operations and customs procedures must be appointed. The premises must be declared as a principal or additional place of business for GST.
Accounts of receipt and removal must be maintained digitally in the form at Annexure B of Circular No. 34/2019-Customs, and furnished to the bond officer monthly under Regulation 17.
Where the same warehouse is also used for non-Section 65 purposes, a monthly return in Form B applies under Circular No. 25/2016-Customs. This is expressly allowed to enable optimum utilisation of the infrastructure, and it is the mechanism a mixed-use 3PL facility should be built around.
A 3PL MOOWR unit that imports goods and clears them as such, without putting them to manufacture, is trading rather than manufacturing. That is permitted, but the treatment differs, as CBIC has clarified.
Goods cleared as such attract interest under Section 61(2) once they have been warehoused beyond 90 days. The interest-free deferment applies to goods consumed in or cleared from the manufacturing operation, not to pure storage in the same premises.
At JPARKS INDIA, we structure bonded warehousing so the licence, the ownership of goods, and the bond sit with the right party. We advise whether a Section 57 public warehouse, a Section 58 licence with Section 65 permission, or a client-held licence with 3PL operation best fits the commercial arrangement, and we file it. Having served 500+ importers and exporters since 2018, we keep bonded structures defensible. Learn more about our MOOWR scheme services or book a free consultation.
Yes, where the 3PL holds a Section 58 private warehouse licence with Section 65 permission. But Section 65 permits operations by the owner of the warehoused goods, so the ownership and bond positions must be structured carefully.
Section 65 permits the owner of warehoused goods to carry out operations on those goods, and Section 59 places the bond on that owner. Multi-client bonded storage is the function of a public warehouse licensed under Section 57.
No. Manufacture and other operations under Section 65 are permitted only in a private bonded warehouse licensed under Section 58.
Yes. A MOOWR unit may send inputs for job work, and may perform job work, subject to the documents and conditions prescribed under GST. Imported capital goods cannot be shifted to a job worker’s premises.
Yes. Goods cleared without being put to manufacture attract interest under Section 61(2) beyond 90 days. The interest-free position applies to goods used in the Section 65 operation.
