The Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019 is an initiative by CBIC to promote India as a global manufacturing hub. It allows businesses to import raw materials and capital goods without immediate payment of customs duty for use in a bonded manufacturing facility.
Deferred Customs Duty Ease of Doing Business Section 65 – Customs ActUnits already licensed as a Private Bonded Warehouse under Section 58 of the Customs Act.
Units applying for a new warehouse license along with permission to undertake manufacturing under Section 65.
Online application through Annexure A
Execution of Bond (Annexure C)
Approval by Jurisdictional Customs Commissioner
Commencement of Manufacturing / Operations
While MOOWR offers significant benefits, businesses may face challenges such as tracking imported content for domestic clearance, non-availability of export incentives like Drawback and RoDTEP, and limited digital infrastructure for return filings.
Applicable customs duty and GST are paid at the time of clearance.
Finished goods can be exported without payment of customs duty.
Goods may be transferred to another bonded warehouse as raw material.