MOOWR for Auto Components
MOOWR Scheme — Auto Components Manufacturers
Auto component plants run on imported alloy steel, aluminium extrusions, semiconductors, sensors, and high-precision machine tools. With BCD ranging 7.5%–10%, IGST 18%, and ADD on Chinese steel and bearings, working capital trapped in customs duty is the single largest non-operating drag on Tier-1 and Tier-2 supplier IRR.
Typical imported inputs
- Cold-rolled and alloy steel (HSN 7208, 7225) — BCD 7.5%, occasional ADD
- Aluminium ingots and extrusions (HSN 7601, 7604) — BCD 7.5%
- Bearings, fasteners, gears (HSN 8482, 7318) — BCD 7.5%–10%, ADD on Chinese origin
- Sensors, ECUs, semiconductors (HSN 8542, 9032) — BCD 0%–10%, IGST 18%
- CNC machining centres, robots, EDMs (HSN 8457, 8479) — BCD 7.5%, IGST 18%
Duty profile
A representative ₹150 Cr import basket attracts ~₹14–18 Cr of BCD + IGST. Under MOOWR, the entire amount is deferred — released only on DTA clearance of finished components, and waived entirely on the export portion.
Worked example
| Annual imported inputs (CIF) | ₹120 Cr |
| Annual capital equipment import | ₹30 Cr |
| BCD @ 7.5% (blended) | ₹11.25 Cr |
| IGST @ 18% on BCD-loaded value | ₹29.0 Cr |
| Total duty deferred under MOOWR | ₹40.25 Cr |
| Working capital interest saved @ 9% p.a. | ~₹3.6 Cr / year |
Why MOOWR fits Auto Components
- Indian OEMs (DTA buyers) and global Tier-1 exports (Stellantis, Bosch, Continental) — same plant, one Customs scheme.
- Bonded job-work permitted: send sub-assemblies to vendors and receive back without breaking deferment.
- ADD on Chinese steel and bearings deferred along with BCD — no immediate cash hit on China-sourced inputs.
- Capital expansion (new presses, EDMs, robotics) imports without IGST drag for 12–18 months commissioning cycles.
Case snapshot
A Pune-based stamping and machining house importing ~₹95 Cr of steel and machine tools annually moved to MOOWR in nine months. First-year duty deferment: ₹11.4 Cr. Working capital headroom unlocked funded a new high-tonnage press line.
FAQs
We supply 60% to Indian OEMs and 40% export — does MOOWR still help?+
Yes. The export 40% bears zero BCD and zero IGST. The DTA 60% pays duty only when finished goods are cleared — at the import value of inputs, with the value-addition margin retained duty-free.
Can sub-contracting to a heat-treatment vendor continue?+
Yes. MOOWR Regulation permits movement of partially manufactured goods to job workers with simple intimation. Goods return to the bonded premises before clearance.
Model MOOWR on your auto components import basket
Send us your top-20 HSN codes, annual import volumes and DTA/export split. Receive a CFO-ready impact memo within 48 hours.