MOOWR vs SEZ: A Practical Comparison
SEZs offer strong duty benefits but come with location and NFE constraints. MOOWR delivers similar duty outcomes without the zone restriction or export obligation.
Side By Side
| Feature | MOOWR | SEZ |
|---|---|---|
| Location | Anywhere in India | Inside notified SEZ only |
| Export obligation | None | Positive NFE |
| Domestic sales | Freely allowed | Treated as imports — full duty |
| Income tax benefit | None (scheme-specific) | Limited (sunset) |
| Validity | Lifetime | Linked to SEZ approval |
| Setup cost | Low | High (zone infra premium) |
Verdict
If you need flexibility, want to operate from your existing factory, and care about domestic sales — MOOWR wins on almost every axis. SEZ remains relevant for very large export-only investments inside an existing zone.
FAQs
Can I move from SEZ to MOOWR?
Yes. Manufacturers exiting SEZs increasingly use MOOWR as the destination scheme, since it preserves duty deferment without the zone restriction.
Does MOOWR require a separate bonded warehouse?
No. Your existing factory is treated as a bonded warehouse under Section 65.