Regulations explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Regulations 1 to 6 of the Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 (the MOOWR Regulations) say which units they cover, who may apply for permission to manufacture or carry out other operations in a bonded warehouse under section 65 of the Customs Act, 1962, what the application must contain, and how long the permission lasts.
The regulations cover units that operate under section 65 or apply for permission to do so. A person may apply if they already hold a private warehouse licence under section 58, or if they apply for a section 58 licence together with section 65 permission. The application goes to the Principal Commissioner or Commissioner with an undertaking to keep digital accounts and send them monthly, to execute a bond and to inform input-output norms where considered necessary. On due verification the Commissioner shall grant permission, valid until cancelled or surrendered.
Position of the text: as amended up to the CBIC text updated 1 October 2019 (Notification No. 69/2019-Customs (N.T.) dated 1 October 2019); no amendment found up to 3 October 2026. Later notifications should be checked. This article describes the text as published.
The regulations were made under section 157 and section 143AA read with section 65 of the Customs Act, 1962, in supersession of the Manufacture and Other Operations in Warehouse Regulations, 2019, except as respects things done or omitted to be done before the supersession. The Act's simplified-procedure provision is covered in sections 143 to 143AA of the Customs Act, 1962. For the scheme in plain terms, see our posts on bonded manufacturing under section 65 and on MOOWR and duty deferment without an export obligation. Manufacturers who are weighing the scheme can use our compliance advisory service.
Regulation 1 and regulation 2
The regulations came into force on the date of publication in the Official Gazette. Regulation 2 defines "bond officer" as an officer of customs in charge of a warehouse, "Controller of Certifying Authorities" by reference to section 17(1) of the Information Technology Act, 2000, "Form" as the form appended to the regulations, and "section" as a section of the Act.
Regulation 3: scope
The regulations apply to units that operate under section 65 of the Act or to units applying for permission to operate under section 65. A MOOWR unit follows these regulations, and, as the warehouse regulations say, the ordinary warehouse regulations do not apply to a warehouse operating under section 65.
Regulation 4: eligibility and the application
Regulation 4(1): who may apply.
| Clause | Eligible person |
|---|---|
| (i) | A person who has been granted a licence for a warehouse under section 58 of the Act, in accordance with the Private Warehouse Licensing Regulations, 2016 |
| (ii) | A person who applies for a licence for a warehouse under section 58 together with permission for manufacturing or other operations in the warehouse under section 65 |
Eligibility is tied to the private warehouse licence under section 58. A new entrant can apply for both together, so that it does not have to hold a licence first. The licensing conditions are in our article on the Private Warehouse Licensing Regulations, 2016.
Regulation 4(2): the application. It is made to the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, along with an undertaking to:
- maintain accounts of receipt and removal of goods in digital form, in a format that may be specified, and furnish them to the bond officer digitally on a monthly basis;
- execute a bond in a format that may be specified; and
- inform the input-output norms, wherever considered necessary, for raw materials and final products, and inform the revised norms if they change.
The text does not print a bond amount or a format; both are "as may be specified". The input-output norms are to be informed "wherever considered necessary", so the requirement depends on the Commissioner's view of the case.
Regulation 5: grant of permission
On due verification of the application made under regulation 4, the Principal Commissioner or Commissioner shall grant permission to operate under the regulations. The word is "shall", not "may": once the application is verified as in order, permission follows. The text sets no time limit for verification or grant.
Regulation 6: validity of permission
Permission granted under regulation 5 remains valid unless it is cancelled or surrendered, or the licence issued under section 58 is cancelled or surrendered, in terms of the Act or the rules and regulations under it. Permission therefore falls with the warehouse licence. A unit that loses its section 58 licence cannot continue under section 65.
| Event | Effect on permission |
|---|---|
| Permission cancelled or surrendered | Ends |
| Section 58 licence cancelled or surrendered | Ends |
| Neither | Valid; no fixed term |
A worked example
Prism Electronics Pvt Ltd holds a private warehouse licence under section 58 for its Noida plant. It now wants to manufacture inside the bonded premises under section 65. It applies to the Commissioner with an undertaking to keep digital accounts of receipt and removal and send them to the bond officer every month, to execute a bond in the specified format, and to inform input-output norms for its raw materials and final products when asked. After verification the Commissioner grants permission. A competitor, Meridian Gears, has no warehouse licence yet; it applies for a section 58 licence together with section 65 permission under regulation 4(1)(ii). Later, Prism surrenders its warehouse licence: its section 65 permission ends with it.
Where this fits
- The first six regulations deal with getting in. The next set, covered in our article on regulations 7 to 12, deals with operating: keeper, facilities, transport and receipt of goods.
- Removal of resultant goods, due arrival, records, audit and penalty come later in the regulations.
Need help with MOOWR permission?
If your unit wants to apply for section 65 permission or combine it with a new section 58 licence, our compliance advisory team can review eligibility, the undertaking and the bond with you before you file.
Key takeaways
- The regulations apply to units operating under section 65 or applying for permission.
- Eligible applicants hold a section 58 private warehouse licence, or apply for that licence and section 65 permission together.
- The application includes an undertaking on digital monthly accounts, a bond and input-output norms where considered necessary.
- The Commissioner shall grant permission on due verification; it is valid until cancelled or surrendered, or until the section 58 licence is.
Read next
- Regulations 7-12 of the MOOWR (No. 2) Regulations, 2019: warehouse keeper, transport and receipt of goods
- Customs bonded manufacturing: section 65 MOOWR scheme
- MOOWR: duty deferment without an export obligation
- Private Warehouse Licensing Regulations, 2016: licence, conditions and surrender
Disclaimer: Based on the customs regulations named above as published on the CBIC Tax Information Portal or in the Gazette and, for sets amended since 2023, the amending notifications (read through a TaxClue consolidated reading text; no official consolidated text exists), as consulted on 3 October 2026. Later notifications, fees and the Customs Act, 1962 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.