Capital goods under MOOWR.
MOOWR is not only about raw materials. Some of its biggest wins come on the machinery and equipment you import to build the operation.
Deferring duty on machinery.
Setting up or expanding a plant often means importing expensive capital goods, machinery, tooling and equipment, each carrying customs duty at the point of import.
Under MOOWR, capital goods imported for use in the bonded operation get the same duty deferral as raw materials. That removes a significant upfront cost from a capex project and improves the economics of building in India.
For manufacturers in the middle of an expansion, this can be the single most valuable feature of the scheme.
The capital-goods advantage.
No customs duty due when the machinery is imported.
Improves the return on a new line or plant.
Duty cash stays available for the rest of the project.
Capital goods sit within the same licence and returns.