Shifting from MOOWR to EPCG for Same Import done under MOOWR

[Abhijeet Mane]

I have imported a machine under the MOOWR scheme, and the customs duty was deferred at the time of import. We now find that MOOWR is not useful for our operations and want to shift this same machine from MOOWR to the EPCG scheme.

Is it permissible to switch the same capital good from MOOWR to EPCG without paying the deferred customs duties again, and simply fulfil the EPCG export obligation going forward?

AI Summary

Deferred customs duty under warehousing cannot be avoided by switching to a duty-exemption scheme without first paying owed duty.
Capital goods entered under MOOWR receive only deferment of customs duty and, upon removal from the bonded warehouse, the deferred duty must be paid via ex-bond clearance; the EPCG duty-exemption scheme cannot be applied retrospectively to goods imported under MOOWR, so switching the same machine to EPCG without discharging the deferred duty is generally not permissible.