Can MOOWR Be Used for Machinery Imports?

Introduction
MOOWR is not limited to raw materials or consumables. The scheme fully allows import of machinery and capital goods with significant duty deferment benefits.

Machinery Allowed Under MOOWR
Capital goods such as plant, machinery, tools and equipment required for manufacturing or other approved operations can be imported into a MOOWR bonded warehouse without upfront payment of customs duty or IGST.

No Upfront Duty or IGST
When machinery is imported under MOOWR, Basic Customs Duty, Social Welfare Surcharge and IGST are deferred at the time of import. This substantially reduces initial capital investment pressure.

Use Inside Bonded Premises
Machinery can be installed and used inside the bonded warehouse for approved operations. There is no requirement to clear the machinery for home consumption immediately.

Duty Payment Only on Removal
Customs duty becomes payable only if and when the machinery is removed from the bonded premises for domestic use. If the machinery continues to remain in bond, duty remains deferred.

No Export Obligation
Unlike EPCG, MOOWR does not impose any export obligation on machinery imports.

Working Capital Advantage
For high value machinery, MOOWR can save crores in upfront duty and tax outflow, improving cash flow and project feasibility.

Conclusion
MOOWR is a highly efficient option for machinery imports, offering flexibility, duty deferment and strong cash flow benefits without export conditions.

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