'MOOWR is a duty deferment scheme'

There is no customs duty exemption for inputs used in the manufacture of capital goods in a bonded warehouse, even if they are supplied to an EPCG authorisation holder

Presently we import inputs under Advance Authorisation, manufacturing and supplying capital goods to our domestic customers against their invalidation letter for EPCG licence availed by them, which is deemed exports for us. We intend to convert our DTA unit to the MOOWR Scheme. Can we continue to supply capital goods manufactured from a MOOWR bonded warehouse against the customer’s EPCG Authorisation, availing the duty-free imported inputs?

The MOOWR scheme is essentially a duty deferment scheme. When you clear goods manufactured in a bonded warehouse, you have to pay duty on the inputs used in the manufacture of the goods --