Conversion of MOOWR Unit to EOU Unit

[CHICKMAGALUR SRIKANTHA]

An existing company operating under MOOWR scheme wish to switch over to EOU scheme. Whether the said company apply for an EOU license / permission to Development Commissioner, without canceling the MOOWR license. On receipt of the license /eou approval from DC, then the company wish to transfer the capital goods and materials imported under MOOWR to EOU unit under bond to bond transfer without payment of duty and without physical movement of the goods. Then MOOWR unit will surrender the license. 

In the said scenario, is it possible to apply for Eou status license while operating under moowr scheme till the eou license is obtained. the moowr unit and eou unit location is one and the same. 

AI Summary

MOOWR unit can apply for EOU while license active and transfer imports bond-to-bond duty-free without physical movement An existing MOOWR unit may apply for EOU approval while its MOOWR license remains in force, provided both units occupy the same premises; upon receipt of the EOU license the unit can effect bond-to-bond transfer of capital goods and materials imported under MOOWR to the EOU without payment of duty and without physical movement, subject to Customs reconciliation, after which the MOOWR license should be surrendered. This sequence preserves duty exemptions and continuity of operations.