TaxTMI 
TaxTMI 
TaxTMI 
Yes, second-hand machinery (capital goods)can be imported under the MOOWR scheme (Manufacture and Other Operations in Warehouse Regulations, 2019), subject to compliance with specific conditions prescribed by Indian Customs, FTP and allied regulations.
Key Points Regarding Import of Second-Hand Machinery under MOOWR:
1. Permissibility:
- The MOOWR scheme does not prohibit the import of second-hand or used capital goods for warehousing and manufacturing purposes.
- The importer must comply with general provisions of Customs Law, especially in relation to valuation, classification, and import policy (dgft, EXIM Policy, FTP and HBP).
2. Valuation and Compliance:
- Accurate and transparent valuation of used machinery is crucial. Customs may require:
- Chartered Engineer's Certificate (CEC) to assess value, age, and residual life.
- Invoice, freight, insurance details, and history of usage.
Valuation should be as per Rule 9 of Customs Valuation Rules, in the absence of a transaction value.
3. Policy Conditions:
- Import of second-hand capital goods may fall under Restricted Category under the FTP (Foreign Trade Policy).
- If restricted, the importer may need a valid import license from DGFT (Directorate General of Foreign Trade).
4. Other Compliance:
- The capital goods, once imported under MOOWR, remain non-duty paid while in the bonded premises.
- Duties are payable only when goods are cleared from the warehouse for home consumption.
- No import duty is payable if the goods are used in manufacturing and the finished products are exported.
5. Environmental and Safety Regulations:
- Import of old/used machinery must comply with regulations related to hazardous materials, WEEE (waste electrical and electronic equipment), and environmental clearances, if applicable.
Conclusion:
Import of second-hand or used capital goods is allowed under the MOOWR scheme, but the importer must ensure:
- Proper documentation and valuation,
- Compliance with FTP restrictions (if any),
- Environmental and safety norms,
- Use of the machinery as per the bonded warehouse rules.
Hence, with the right approvals and documentation, second-hand capital goods can indeed be lawfully imported and used under the MOOWR scheme in India.