MOOWR vs Bonded Warehouse: Are They the Same?

Introduction
MOOWR and bonded warehouses are often used interchangeably, but they are not the same. MOOWR is a specialized framework built on the concept of a bonded warehouse, with added manufacturing flexibility.

What Is a Bonded Warehouse
A bonded warehouse is licensed under Section 58 of the Customs Act and allows storage of imported goods without immediate payment of customs duty. Traditionally, only limited operations like storage, sorting, and packing are permitted.

What Is MOOWR
MOOWR stands for Manufacturing and Other Operations in Warehouse. It allows full manufacturing and processing activities inside a bonded warehouse under Section 65 of the Customs Act.

Key Difference in Purpose
A bonded warehouse is mainly for duty deferred storage.
MOOWR is designed for manufacturing, value addition, and processing along with storage.

Scope of Operations
In a normal bonded warehouse, manufacturing is generally not allowed.
Under MOOWR, manufacturing, assembly, testing, repair, and packaging are permitted with approval.

Duty Treatment
Both allow duty deferment. However, MOOWR extends this benefit to inputs and capital goods used in manufacturing.

Flexibility and Compliance
MOOWR offers higher operational flexibility, no export obligation, and no time limit on storage.
Traditional bonded warehouses are more restrictive in operations.

Every MOOWR unit is a bonded warehouse, but not every bonded warehouse qualifies as MOOWR.

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