Scheme Comparison
MOOWR Scheme vs Export Promotion Capital Goods (EPCG) Scheme
EPCG is purpose-built for capital goods imports at zero duty against an export obligation. MOOWR also defers BCD on capital goods — but with no export commitment. The right answer depends on how confidently you can export.
Side-by-side: MOOWR vs EPCG
| Criterion | MOOWR | EPCG |
|---|---|---|
| Scope | Capital goods AND inputs | Capital goods only |
| BCD on capital imports | Deferred indefinitely; payable only on physical removal of asset on original CIF value, with no interest | Zero — but conditional on EO fulfilment |
| IGST on capital imports | Deferred indefinitely; no interest | Payable up-front (creditable) |
| Export obligation | None | 6× the duty saved, in 6 years |
| Penalty on EO shortfall | Not applicable | Pay duty saved + interest @ 15% p.a. |
| Bank guarantee | Solvency-based, typically modest | Required for the duty saved |
| Domestic sales of output | Allowed freely | Allowed but doesn't count toward EO |
| Best fit | When export forecast is uncertain or DTA-heavy | When ≥6× export multiple is comfortably achievable |
When MOOWR is the right answer
- You import both capital goods and inputs/components.
- Export volumes are uncertain or DTA mix is significant.
- You want to avoid bank guarantees and Export Obligation Discharge Certificate (EODC) risk.
- You value indefinite IGST deferment on imported machinery.
When EPCG may still win
- Your export order book already supports 6× the duty saved within 6 years.
- You import only capital equipment, not raw materials or consumables.
- Your IGST cash flow can absorb up-front payment (later credited).
FAQs
Can MOOWR and EPCG run in parallel?+
Yes. A manufacturer can hold an EPCG authorisation for specific capital goods and operate MOOWR for the broader factory. We design the split case-by-case to optimise duty cost and EO risk.
What happens to existing EPCG obligations if I switch to MOOWR?+
EPCG export obligations continue against the relevant authorisations until discharged or redeemed. MOOWR licensing on the same premises is independent and does not extinguish EPCG EO.
If capital goods stay inside the MOOWR unit for 15 years and are then sold, what duty is payable?+
Duty is computed on the original CIF value of those capital goods at import, with no depreciation benefit and — critically — no interest for the 15-year deferment period. MOOWR carries no interest on deferred duty under any circumstance.
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