Customs & Special Zones Advisory | MOOWR Section 65, EOU, SEZ & AEO

Bonded manufacturing warehouse with stacked goods

Overview

Customs & Zones at a Glance

If you import a lot of inputs or machinery, where and how you manufacture affects when duty is paid. MOOWR, EOU and SEZ models each defer or remove duty in different ways, and AEO status can speed up clearances. We help you choose and run the right model.

Who needs this

Manufacturers with a high share of imported inputs or machinery
Units comparing MOOWR with EOU or SEZ status
Regular importers and exporters seeking AEO certification
Software and electronics units under STPI or EHTP

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Customs Act, 1962 Section 65

MOOWR (Manufacture & Other Operations in Warehouse)

The MOOWR scheme is India's most flexible duty-deferment framework. It allows manufacturers to import raw materials and capital equipment into a customs-bonded factory with deferred Basic Customs Duty (BCD) and IGST, and zero interest liability.

Key Advantages Over EOU & EPCG:

NO Mandatory Export Obligation: Unlike EOUs or EPCG, you are not bound by rigid export multiples or minimum Net Foreign Exchange (NFE) thresholds.
Flexible Domestic Clearances (DTA): Goods can be cleared into the domestic market at any time by paying standard customs duty on inputs without penal interest.
No Duty on Exported Goods: When finished products are exported, import duties on inputs and capital machinery are completely remitted.
Nationwide Applicability: Can be implemented at any manufacturing site in India without being restricted to notified special economic zones.

Evaluate MOOWR Setup →

Our MOOWR Turnkey Support

✔ Warehouse licensing and Section 58 & 65 permissions from the Principal Commissioner of Customs.
✔ Execution of single general tripartite bond (Form B) with required surety/security.
✔ Setup of digital computerized input-output waste accounts (Form A) matching customs specifications.
✔ Monthly returns filing and annual reconciliation audit support.

Supply Chain Trust

Authorised Economic Operator (AEO) Certification

A voluntary accreditation program administered by CBIC aligned with the WCO SAFE Framework, granting expedited customs treatment and massive bank guarantee savings.

Entry Level

AEO-T1 Tier

Desk-Based Document Evaluation

✔ 50% Bank Guarantee Waiver on customs bonds.
✔ Priority examination and clearance over regular cargo.
✔ Dedicated client relationship manager at major customs houses.
✔ 3 Years certificate validity with minimal desk audit.

Operational Security

AEO-T2 Tier

Physical Verification of Premises

✔ 75% Bank Guarantee Waiver across all customs obligations.
✔ Deferred Duty Payment: Clear cargo first, settle duty bi-weekly.
✔ Expedited customs refunds and drawbacks within 45 days.
✔ Mutual Recognition Agreements (MRA) for faster clearance abroad.

Highest Accreditation

AEO-T3 Tier

Continuous T2 Compliance (2+ Years)

✔ 100% Nil Bank Guarantee: Complete zero-BG privilege.
✔ Green-channel non-intrusive container scanning priority.
✔ Highest facilitation under international bilateral MRAs.
✔ 5 Years validity with on-site audit once every 3 years.

Special Enclaves

EOU & Special Economic Zones (SEZ)

Export Oriented Units and SEZ entities operate as specialized manufacturing enclaves with dedicated fiscal privileges, requiring careful ongoing compliance with the Development Commissioner.

Unit Approval & Setup: Filing LOI/LOP applications before the Unit Approval Committee (UAC).
Net Foreign Exchange (NFE) Monitoring: Ensuring compliance with mandatory cumulative 5-year positive foreign exchange earnings.
Debonding & Exit Advisory: Handling exit from EOU/SEZ status into DTA or transition into the flexible MOOWR framework.
Inter-Unit Transfers & Subcontracting: Permissions for movement of duty-free inputs and intermediate processing outside the zone.

High-Tech Hardware & IT

EHTP & STPI Schemes

Targeted schemes for software exporters and electronics hardware manufacturers established under Software Technology Parks of India (STPI) and Electronics Hardware Technology Parks (EHTP).

STPI Registration & Softex Certification: Monthly and annual filing of Softex forms for realization of software export proceeds.
Duty-Free IT Infrastructure: Importing high-end workstations, testing apparatus, and networking hardware with complete customs duty exemption.
Work from Home (WFH) Approvals: Compliant asset management protocols for offshore development centers and IT service exporters.

Customs Bonded Manufacturing & Special Zones