MOOWR vs EOU: Which Customs Scheme Wins In 2026?
MOOWR and EOU both defer customs duty for manufacturers, but the obligations are very different. Here's a side-by-side that reflects how the two schemes actually play out today.
Side By Side
| Feature | MOOWR | EOU |
|---|---|---|
| Export obligation | None | Positive NFE over 5 years |
| Bank guarantee | Not required | Required |
| Validity | Lifetime | 5 years (renewable) |
| Domestic sales | Allowed (duty on inputs only) | Allowed with restrictions / DTA limits |
| Duty on capital goods | Deferred / waived on export | Deferred / waived on export |
| Location restriction | Anywhere in India | Anywhere, but customs-bonded |
| Setup complexity | Moderate (30–45 days) | Higher (60–90 days) |
Verdict
For most growing manufacturers — especially those with a meaningful domestic market — MOOWR is the better scheme. EOU still makes sense if you are a near-100% exporter and value the legacy ecosystem.
FAQs
Can an existing EOU convert to MOOWR?
Yes. EOU units routinely convert to MOOWR after debonding, especially when the export mix shifts toward domestic.
Is the duty benefit identical under both?
On the export leg, yes — duty is fully waived. On the domestic leg, MOOWR is generally simpler because there is no NFE to manage.