DGFT Notification: Norms for In-Bond Manufacturing Under MOOWR 2024

The Directorate General of Foreign Trade (DGFT) has provided updated clarity regarding the integration of the Manufacture and Other Operations in Warehouse Regulations (MOOWR) with existing foreign trade benefits. As per the latest DGFT policy environment, manufacturers can leverage duty deferment on imported capital goods and raw materials under the MOOWR scheme, which is administered by the CBIC, while maintaining compliance with Foreign Trade Policy (FTP) 2023 mandates. This synergy is particularly beneficial for SME exporters who seek to improve cash flow by deferring customs duties until the finished goods are cleared for domestic consumption or waived upon export. While MOOWR allows for efficient sub-contracting and easier movement of goods, exporters must ensure that their records are meticulously maintained to avoid conflicts with Advance Authorization or EPCG obligations. ## What this means for exporters Indian manufacturers can now more confidently utilize the MOOWR scheme to set up units without the geographical constraints of an SEZ. However, it is vital to reconcile these with the RoDTEP scheme to ensure no double-counting of benefits. We recommend a thorough audit of your 'In-bond' manufacturing logs to ensure they align with the digital filing requirements on the DGFT portal. As per official guidelines from the Ministry of Finance, the MOOWR scheme continues to be a pillar for the 'Make in India' initiative, offering a competitive edge in global pricing.