Can customs revoke MOOWR approval?

Introduction
MOOWR operates under Sections 58 and 65 of the Customs Act. While the approval has no fixed expiry, it is conditional on continuous compliance. Customs authorities have clear powers to revoke the license if conditions are violated.

Grounds for Revocation
Customs may suspend or cancel a MOOWR approval in cases of serious non compliance. Common grounds include failure to maintain prescribed records, stock mismatches, non filing of returns, misuse of bonded goods, unauthorised removal of goods, or carrying out operations beyond what was approved.

Procedure Followed by Customs
Revocation is not automatic. Customs must issue a notice explaining the alleged violations and give the license holder an opportunity to respond. In urgent situations, approval may be temporarily suspended pending inquiry.

Consequences of Revocation
If approval is cancelled, the unit must immediately account for all bonded goods. Customs duty, IGST, interest, and penalties may become payable on the stock lying in the warehouse. The B 17 bond may also be enforced.

Right to Remedy
The license holder has the right to make representations, seek restoration after rectifying lapses, or appeal against the revocation as per customs law.

Conclusion
Customs can revoke MOOWR approval, but only for valid reasons and after due process. Units that maintain strong internal controls and compliance rarely face such action.

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