TaxTMI 
TaxTMI 
Expert Views Required - MOOWR for Trading Model & Customs Duty on Used Capital Goods at Ex-Bond Clearance
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....xpert Views Required - MOOWR for Trading Model & Customs Duty on Used Capital Goods at Ex-Bond Clearance<br> Query (Issue) Started By: - NYAYASETU LEGAL ASSOCIATES LLP Dated:- 6-7-2026 Last Reply Date:- 16-7-2026 Customs - Exim - SEZ<br>Got 3 Replies<br>Customs<br>Dear Experts, We seek your views on the following practical issues under the MOOWR Scheme. Query 1 - MOOWR for Trading Entity ....
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....A Company is engaged in trading imported consumer products such as kitchen chimneys, appliances and utensils. Business model: • Import finished goods from overseas. • Store goods at our Central Distribution Centre (Haryana). • Carry out quality inspection, testing, repacking, relabelling, barcode affixation and kitting. • Thereafter, supply go....
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....ods to dealers across India. No manufacturing activity is undertaken. Queries: • Can such a trading entity obtain MOOWR approval under Section 65? • Whether testing, inspection, repacking, relabelling and kitting qualify as "other operations"? • Can customs duty be deferred till DTA clearance? • Has anyone implemented a similar model or obt....
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....ained Customs approval? Any supporting Circulars, FAQs or case laws? Query 2 - Capital Goods under MOOWR Another group entity engaged in manufacturing activity of plastic products proposes to import capital goods under MOOWR. The machinery will remain installed and used for manufacturing for around 10-20 years and thereafter may be sold or cleared into DTA. Queries: • At the ....
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....time of ex-bond clearance after long-term use, will deferred customs duty be payable on: • Original import assessable/CIF value, or • Depreciated value / WDV? • CBIC FAQs mention that depreciation is not available for capital goods cleared into DTA after use. However, under which specific provision of the Customs Act/Rules is such valuation governed? ....
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....€¢ Has anyone practically handled such ex-bond clearance? If yes, how was the assessable value determined and did Customs allow any depreciation? Any practical experience, departmental practice or judicial precedents would be highly appreciated. Reply By Nash Industries I Pvt Ltd: The Reply: MOOWR is a duty deferral scheme and not an exemption scheme. The duty that is to be paid at the....
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.... time of import is deferred till DTA clearance. And as such depreciation is not applicable as per the current provisions. You may please refer to Customs Circular No 38/2018 dated 18.10.2018 and circular 34/2019 dt 01.10.2019 Reply By Shilpi Jain: The Reply: Manufacture under FTP is defined as this 11.31 "Manufacture" means to make, produce, fabricate, assemble, process or bring into exist....
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....ence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re-packing, polishing, labeling, Re-conditioning repair, remaking, refurbishing, testing, calibration, re-engineering. As you are performing these activities MOOWR should not be a problem. Reply By Shilpi Jain: The Reply: No depreciation benefit will be ....
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....available at the time of clearance as it is in the nature of duty deferment scheme.<br> Discussion Forum - Knowledge Sharing ....