MOOWR for Heavy Engineering & Machinery
MOOWR Scheme — Heavy Engineering & Machinery Manufacturers
Long-cycle engineering projects mean capital is locked in WIP for 9–18 months. Imported castings, hydraulics, electronics and bought-out components carry 7.5%–10% BCD and 18% IGST — paid years before the customer pays you. MOOWR breaks that cycle.
Typical imported inputs
- Heavy castings and forgings (HSN 7325, 7326) — BCD 7.5%
- Industrial motors, drives, VFDs (HSN 8501, 8504) — BCD 7.5%, IGST 18%
- Hydraulic and pneumatic systems (HSN 8412, 8413) — BCD 7.5%
- PLCs, HMIs, industrial controls (HSN 8537) — BCD 7.5%–10%
- Bought-out sub-assemblies and gear units (HSN 8483) — BCD 7.5%
Duty profile
Project orders worth ₹500 Cr typically embed ₹150–200 Cr of imported content. MOOWR keeps the ~₹35–50 Cr duty in your business until the asset is invoiced — converting customs duty from a sunk cost into a deferred liability.
Worked example
| Annual imported BoM (project + spares) | ₹180 Cr |
| Capital tooling and test rigs | ₹25 Cr |
| BCD @ 7.5% blended | ₹15.4 Cr |
| IGST @ 18% | ₹35.5 Cr |
| Total duty deferred | ₹50.9 Cr |
| Working capital cycle freed | 9–14 months |
Why MOOWR fits Heavy Engineering & Machinery
- Project-based revenue means lumpy cash flows — duty deferment smooths the working capital curve.
- Spare parts business and OEM-replacement imports can move under the same licence.
- Permits in-bond fabrication, testing and FAT (factory acceptance testing) before duty crystallises.
Case snapshot
A Pune machine tool builder serving DTA OEMs and global mining equipment majors moved imports of ₹110 Cr annually under MOOWR, deferring ~₹13 Cr in duty and aligning Customs cost recognition with revenue recognition.
FAQs
Can imported components held for 18 months in WIP remain under deferment?+
Yes. There is no shelf-life limit under MOOWR — duty crystallises only on DTA clearance of the finished good or on disposal as scrap.
Can we install imported test rigs at customer sites?+
Movement of bonded capital goods outside the licensed premises requires prior intimation and continues under bond. Site-installation is contractually feasible — we structure the licence to permit it.
Model MOOWR on your heavy engineering & machinery 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.