Section 65 of the Customs Act.
MOOWR operationalises Section 65 of the Customs Act, 1962. Understanding that section is the clearest way to understand where the scheme gets its power.
Where MOOWR comes from.
Section 65 of the Customs Act, 1962 permits the owner of a licensed warehouse to carry out manufacturing and other operations on goods held in that warehouse, subject to the permission of the customs authorities.
A warehouse is first licensed under Section 58 or 58A of the Act. Section 65 then layers on the permission to actually manufacture inside it. Together, they let imported goods be worked on before any duty is paid.
The MOOWR, 2019 regulations set out the practical framework: how to apply, the bond to be executed, the records to be kept and the returns to be filed. Section 65 is the enabling power; the regulations are the operating manual.
The permissions it grants.
Production on warehoused goods before duty is paid.
Assembly, testing, repair and similar activities on bonded goods.
No customs duty at the point of import into the warehouse.
Clearance for export without paying the deferred import duty.