How Duty Deferment Works Under the MOOWR Scheme?

Introduction
Duty deferment is one of the key advantages of the MOOWR scheme. It allows businesses to postpone payment of customs duty until goods are actually cleared for domestic use.

Import Without Immediate Duty Payment
Under MOOWR, imported raw materials, capital goods and components can be brought into a bonded warehouse without paying customs duty at the time of import. The duty liability is suspended while the goods remain in bonded status.

Use and Storage in Bond
Imported goods may be stored, processed or used for manufacturing within the bonded warehouse. During this period, no duty is payable, which improves cash flow and reduces working capital blockage.

Clearance for Domestic Market
Customs duty becomes payable only when goods or finished products are cleared into the domestic market. Duty is calculated based on the applicable rate on the date of clearance, not the date of import.

Exports Without Duty Payment
If goods or finished products are exported directly from the bonded warehouse, no customs duty is payable on the imported inputs used in their manufacture.

No Fixed Time Limit
MOOWR does not prescribe a mandatory time limit for duty deferment. Goods can remain bonded until business requirements dictate clearance.

Compliance and Records
Accurate inventory and consumption records are essential to ensure that deferred duty is correctly accounted for.

Conclusion
Duty deferment under MOOWR offers flexibility, liquidity benefits and cost efficiency, making it a powerful option for importers and manufacturers.

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