MOOWR scheme made less attractive

Most manufacturers were reluctant to opt for the MOOWR scheme instead of well-established EOU/SEZ/EPCG schemes. Now, even some MOOWR units may opt out of the scheme and go for the competing schemes

In October 2019, the finance ministry introduced the Manufacture and Other Operations in Warehouse (No.2) Regulations (MOOWR), 2019, vastly simplifying the scheme for manufacturing in bonded warehouses and making it more attractive. Now, amendments in the Customs Act, 1962, made through the Finance Act, 2023, that will take effect at a date to be notified later, make the scheme a lot less attractive.

The government conceived the MOOWR in response to a panel ruling at the World Trade Organisation (WTO) that held the export oriented units (EOU) scheme, special economic zones (SEZ) scheme and export promotion capital goods (EPCG) scheme as