MOOWR Schema

[Mathi Bharathi]

Dear Sir

In MOOWR Scheme whether trader (Importer) are eligible or not? They are importing and putting sticker and sell into domesctic market? Thats all. Please clarify

[Shilpi Jain]

Under the Customs law manufacture is not defined. MOOWR is applicable when there is either manufacture or other operations.

'Other operations' is also not defined.

Whereas, if you look at Foreign Trade Policy (FTP), even re-packing and re-labelling is included under manufacture. So one can consider that any re-packing and re-labelling could be considered as other operations, if not manufacturing.

However, this being a new scheme with less precedence, suggested that an intimation is made to the department one could also consider applying to Customs Advance Ruling Authority.

[KASTURI SETHI]

An extract from CBEC Guidelines on MOOWR

Types of businesses covered: Any business desiring to conduct manufacture or any other operations can apply under MOOWR. Existing businesses can also apply.

[KASTURI SETHI]

(i) The term, 'Other Operations' is integrally related to the definition of ' manufacture' by way of conjunction, 'OR' . In the absence of definition of 'Other Operations' in MOOWR, 2019 we can resort to the case laws.

(ii) Any process which renders the goods marketable amounts to manufacture-----------CESTAT in the case of Shri Vrindavan Dairies Vs.CCE, Jaipur-1 - 2018 (6) TMI 804 - CESTAT NEW DELHI

(iii) The department filed Civil Appeal against CESTAT's Order with Hon'ble Supreme Court which was dismissed as withdrawn.

Hence labelling is a manufacturing process.

[Mathi Bharathi]

Dear Sir / Madam

Thanks for your initiative and prompt reply

AI Summary

Manufacture or other operations: re labelling and re packing may qualify under MOOWR, consider advance ruling for clarity.
MOOWR applies when there is either manufacture or other operations, though Customs law does not define those terms. CBEC guidance permits businesses conducting manufacture or other operations to apply. The Foreign Trade Policy treats re packing and re labelling as manufacture, and tribunal precedent treating labelling as a manufacturing process supports treating relabelling/repacking as qualifying operations for MOOWR. Due to limited precedent, parties are advised to intimate the department or seek an advance ruling for scheme eligibility.