Scheme Comparison
MOOWR Scheme vs Advance Authorisation (AA) Scheme
Advance Authorisation is the classical input-duty exemption tool against an export commitment. MOOWR offers a more flexible, modern alternative when product mix and export visibility are uncertain.
Side-by-side: MOOWR vs Advance Authorisation
| Criterion | MOOWR | Advance Authorisation |
|---|---|---|
| Scope | Inputs + capital goods + consumables | Inputs only, against SION or self-declared norms |
| Export obligation | None | Yes — fixed value addition + time-bound |
| BCD / IGST | Deferred | Exempt up-front |
| Norms / SION | Not applicable — record-based | Standard Input Output Norms or ad-hoc |
| Wastage allowance | Standard accounting treatment | Within SION wastage band only |
| Validity | Indefinite licence | 12–18 months for imports; 18 months for EO |
| Risk on EO shortfall | None | Duty + interest @ 15% + penalties |
| Best fit | Stable manufacturer with mixed DTA + export | Single product, predictable export run, tight SION |
When MOOWR is the right answer
- Multi-product factory with overlapping DTA and export demand.
- Inputs and capital equipment imported under one operating licence.
- You want to remove SION, wastage band, and EO discharge risk.
When Advance Authorisation may still win
- Your bill of materials maps cleanly to a published SION.
- Export orders are confirmed and within the AA validity window.
- Single-product or single-shipment export programmes.
FAQs
Does MOOWR replace the need for Advance Authorisation?+
Functionally, yes — for most input-duty deferment use cases. MOOWR removes export obligation and SION constraints, which are AA's biggest operational frictions.
Can we draw inputs into a MOOWR unit and export under LUT?+
Yes. MOOWR units routinely export under LUT (Letter of Undertaking) without payment of IGST, while BCD on the imported inputs is permanently waived for the exported portion.
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