MOOWR scheme on related to IGST

[Mathi]

Dear Sir / Madam

In MOOWR Scheme, Entire Duty portion (BCD+SWC+IGST) is Exempted or Not.

or IGST should pay in upfront at that time of clearance. Please explain

[KASTURI SETHI]

See Sections 58 and 65 of the Customs Act. BCD, SWS and IGST are deferred and not exempted. Not required to be paid upfront at the time of clearance from port. Duties are to be paid on imported inputs, capital goods and manufactured goods, only if cleared for home consumption. Duties are exempted or remitted on export.

[KASTURI SETHI]

Also see Circular No. 3/22-Customs dated 1.2.22. Social Welfare Surcharge is nil on goods exempted from basic and other customs duties/cesses -reg.

[Mathi]

Thank you for detailed reply

[Shilpi Jain]

Presently, yes, all these duties and taxes are not required to be paid at the time of import by MOOWR.

Though to note that under the customs law, there has been an amendment in the act whereby at a future date a notification can be introduced to spell out that IGST would become liable to be paid in case of import by MOOWR.

Till date such notification is not issued. Hence, as on today, the position is IGST is also not required to be paid in case of imports by a MOOWR.

AI Summary

MOOWR import duty deferral postpones customs duties and IGST until home consumption, while exports receive duty remission.
MOOWR imports are subject to duty deferral rather than exemption. Basic customs duty, social welfare surcharge and integrated goods and services tax are not required to be paid upfront when goods enter the warehousing arrangement, but become payable if imported inputs, capital goods or manufactured goods are cleared for home consumption. Duties are stated to be exempted or remitted on export. While a future notification may require integrated goods and services tax on such imports, no such notification has been issued.