Rules of Warehouse Receipts

Rules of Warehouse Receipts

  1. A GGC Warehouse Receipt in which it is stated that the goods received will be delivered to the person named in the receipt or his order shall be “a transferable warehouse receipt”.
  2. No words shall be inserted in a GGC Warehouse Receipt with the effect of rendering that receipt non-transferable.
  3. A GGC Warehouse Receipt for goods shall only be issued by a Warehouse Operator duly authorized and licensed to do so under the provisions of these
  4. A GGC Warehouse Receipt shall be transferable among participants in the GGC Warehouse Receipt System.

                                                                             

Issuing of GGC Warehouse Receipts.

  1. Every contract for warehousing services entered into between a licensed Warehouse Operator and a depositor shall be subject to the Rules and Regulations of the Association.
  2. Every Warehouse Operator licensed by the Association shall issue GGC Warehouse Receipts as title documents to depositors for goods deposited in his warehouse(s) in the Form approved by the Association as per Schedule 7 , – –
  3. GGC Warehouse Receipt shall not be issued in respect of goods requiring drying and or cleaning.
  4. Scale Weight Ticket (tickets) as prescribed in Schedule 8 shall be issued in respect’of such goods requiring drying and or cleaning in the Form approved by the Association as per Schedule 8 hereof. The ticket shall contain a clause reserving for the Warehouse Operator the right to terminate storage, conditioning, shipping and handling arrangements and collect outstanding charges upon the revocation of the Warehouse Operators license. GGC Warehouse Receipt shall be issued only after the drying and or cleaning of such goods.

 

Mandatory Terms and Information in a GGC Warehouse Receipt.

  1. A GGC Warehouse Receipt shall contain the following information and terms:-

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    • The name, location and full postal and street address of the warehouse where the goods are stored;
    • The warehouse license number and date up to which it is valid;
    • The date of issue of the receipt;
    • The serial number of the receipt:
    • Name and address of the person by whom or on whose behalf the goods are deposited; A short description of the goods or of the packages containing them with particulars of the quantity and quality or grade;
    • The registered signature of the authorized Warehouse Operator;
    • The nature and fact of ownership of the goods, whether solely or jointly or commonly owned with others;
    • Whether or not the underlying goods have been charged;
    • A statement as to the amount of advances made and of liabilities incurred;
    • The shelf life of any goods for which a receipt is issued or how long the goods have stayed in the warehouse (level of quality deterioration);
    • That the receipt would be valid only till the date of expiry of declared shelf- life of the goods for which it is issued;
    • Private marks of depositor on the goods or packages, if any;
    • Name of the insurance company indemnifying for fire, flood, theft, burglary, misappropriation, inherent explosion and employee fidelity: and
    • The fact that the Warehouse Operator holds a lien on the goods deposited for his storage and handling charges.
    • A statement that the receipt is issued subject to the Rules and Regulations of the GGC Warehouse Receipt System.
    • A provision reserving for the Warehouse Operator the right to terminate storage, shipping, conditioning and handling arrangements and collect outstanding charges upon the revocation of the Warehouse Operator’s

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  2. When several warehouses are operated by one Warehouse Operator, each such warehouse shall be numbered. This’ numerical designation shall be on all
  3. GGC Warehouse Receipts shall be paper or electronic documents.
  4. Receipt from only one receipt book shall be issued for goods stored or received for storage in any one warehouse. When all the receipts of any one book have been issued, a new book shall be substituted for it. No receipt shall be issued from a book pertaining to one warehouse for goods stored in another

Security  and Prudential Requirements for GGC Warehouse Receipts.

  1. GGC Warehouse Receipts shall be printed on distinctive paper and in the design specified by the Association and shall have security features that would make them difficult to forge.
  2. Each Warehouse Operator shall file with the Association the name and specimen of signature of each person authorized to sign GGC Warehouse The use of facsimile signature stamp is prohibited on receipts. Any changes or additions to such authorization shall be immediately brought to the attention of the Association by the Warehouse Operator.
  3. A GGC Warehouse Receipt shall be valid for delivery till the date of expiry of
    the declared shelf-life of the goods for which it is issued. The shelf’ life of goods shall be determined every six (6) months after the goods in storage have been re-graded.
  4. A Warehouse Operator shall issue a GGC Warehouse Receipt only upon actual delivery of goods into storage. The receipt shall be issued from the warehouse of storage, except as otherwise provided.
  5. The Warehouse Operator shall not issue more than one receipt for the same lot of goods, except where partial receipts are desired. The total of the aggregate receipts of a particular lot shall be no greater than the total of the original lot unless additional goods are deposited.
  6. Should the depositor desire to consolidate several receipts into one, the Warehouse Operator may issue a new consolidated receipt, but only after the original receipts have been cancelled.
  7. In the hands of a holder who has purchased a GGC Warehouse Receipt for valuable consideration, the GGC Warehouse Receipt shall be conclusive evidence of the goods described in it as against the Warehouse Operator or any person claiming through him.
  8. An alteration to a GGC Warehouse Receipt shall be regarded as:-
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    • immaterial if the alteration does not affect proprietary rights which the holder had before the alteration;
    • authorized when made with an implied or direct permission or connivance of the Warehouse Operator and which renders a Warehouse Operator and the perpetrator liable under the provisions of these Regulations; or
    • unauthorized but made without fraudulent intent, when made without an implied or direct permission or connivance of the Warehouse Operator and which renders the Warehouse Operator liable according to the terms of the receipt, as they were before alteration.

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Receipt for Goods Owned by a Warehouse Operator

  1. A licensed Warehouse Operator may issue a receipt for goods owned by him, in whole or in part, located in his licensed warehouse. The transfer, sale, or pledge of any such receipt shall not be defeated by reason of such ownership.
  1. All Warehouse Receipts issued by a licensed Warehouse Operator covering goods owned, in whole or in part, by such Warehouse Operator, may be required to be registered with the Association.

 

Lost or Destroyed GGC Warehouse Receipts

  1. In the case of lost or destroyed Warehouse Receipts, a new receipt upon the same terms, subject to the same conditions, and bearing on its face the number and the date of the lost or destroyed receipt and a plain and conspicuous statement that it is a duplicate receipt issued in lieu of a lost or destroyed receipt, shall be issued upon compliance with these Regulations.
  2. Any loss, theft or destruction ot’the Warehouse Receipt, shall be reported by the Warehouse Operator to the Association.
  3. (a) If a GGC Warehouse Receipt has been lost, stolen or destroyed, the original shall be cancelled and a duplicate issued by the Warehouse Operator provided that the request of the holder is accompanied by:-

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  • A police report of the loss, theft, or destruction of the receipt;
  • A corporate guarantee; or indemnity covering the current market value of goods which shall be in a form approved by the Association for that purpose and which indemnities the Warehouse Operator against any loss sustained by reason of the issuance of a duplicate, and shall be executed by the depositor as principal and by a corporate Surety/guarantor.
  • A statutory declaration by the holder showing that the applicant is lawfully entitled to the possession of the original receipt, that he has not negotiated or assigned it; how the original receipt was lost or destroyed, and if lost, that diligent effort has been made to find the receipt without success; and
  • A copy of a notice of loss, theft, or destruction published in a newspaper of nationwide circulation.

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Upon receipt of such statutory declaration and guarantee/ indemnity:-
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  • The Warehouse Operator shall send copies thereof to the
  • The statutory declaration and guarantee/indemnity shall be retained by the Warehouse .Operator for at least six (6) years after the duplicate receipt is cancelled.

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  1. An appeal regarding the issuance or otherwise of a duplicate receipt shall be made to the Association.
  2. A Warehouse Operator shall retain the copy of the receipt referred to in sub-regulation (1) of this regulation for a period of one year from the date on which the corresponding original receipt was cancelled.
  1. A GGC Warehouse Receipt upon the face of which the word “duplicate” is plainly placed shall be a representation and warranty by the Warehouse Operator that such Warehouse Receipt:-

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  • is an accurate copy of the original receipt; and
  • has the same rights as the original receipt properly issued and outstanding immediately before the issue of the duplicate.

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  1. A duplicate receipt issued shall have the same standing as the original and shall not impose upon the Warehouse Operator any additional liability.
  2. A Warehouse Operator shall be liable for failure to deliver goods to a person to whom the lost, stolen or destroyed Warehouse Receipt has been or shall be transferred for value in good faith and without notice of the fact that a duplicate receipt has been issued or goods have already been delivered.
  1. If the receipt is not taken up or cancelled as provided for under this regulation, If the receipt is not taken up or cancelled as provided for under this regulation, the fact that the purchaser acquired title to the receipt before or after the delivery of the goods by a Warehouse Operator shall not exonerate the Warehouse Operator from liability.

 

Delivery of Goods and Cancellation of GGC Warehouse Receipts.

  1. The holder of a GGC Warehouse Receipt for stored goods in a licensed warehouse may request the goods to be delivered to him.
  2. The stored goods must be delivered in the quantity and grade as designated on the warehouse receipt.
  3. The Warehouse Operator shall not deliver the goods to the depositor or holder, until the due charges are paid to the Warehouse Operator from the date of initial deposit till delivery is made and the Warehouse Receipt is surrendered for cancellation.
  4. The Warehouse Receipt holder, upon delivery of the goods, must surrender the Warehouse Receipt properly endorsed and pay storage, Warehouse Operator’s liens, and any other charges.
  5. Except as provided for under these Regulations, where a Warehouse Operator delivers goods for which he had issued a GGC Warehouse Receipt, he shall take up and cancel the receipt.
  6. If the receipt is not taken up or cancelled as provided for under sub-regulation (5) of this regulation, the fact that the purchaser acquired title to the receipt before or after the delivery of the goods by a Warehouse Operator shall not exonerate the Warehouse Operator from liability.

 

Partial Delivery of Goods

(1). If only a portion of the goods represented by a receipt is delivered, the original receipt must be returned to the issuing Warehouse Operator at or before the time of such delivery. The Warehouse Operator shall either:-
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  • cancel the original receipt and issue a new one covering the balance or undelivered portion of the goods which new receipt shall state in the remarks section that it represents goods which were previously evidenced by the original receipt and giving the number thereof: or
  • endorse conspicuously on the original Warehouse Receipt a statement of what goods and which packages have been delivered.

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(2) A Warehouse Operator who fails to comply with the provisions of sub-regulation (1) of this regulation shall be liable for failure to deliver all the goods specified in the receipt to any person who purchases such receipt for value.

(3) If the receipt is not taken up and cancelled or endorsed as provided for under sub-regulation (1) of this regulation the fact that the purchaser acquired title to the receipt before or after the delivery of any portion of the goods by a Warehouse Operator shall not exonerate the Warehouse Operator from liability.

Damages for Late Delivery

  1. Delivery shall be made at the warehouse or station where the goods were received unless agreed otherwise in writing.
  2. Delivery shall be made within the time provided in any contract with the
  3. Where no contract provision exists, with the depositor delivery shall be made in order of demand by the depositors and as rapidly as can be done by ordinary diligence.
  4. Notwithstanding the provisions of sub regulation (3) above delivery shall be made within forty-eight (48) hours of a request for delivery by depositor after excluding Saturdays, Sundays, and legal holidays.
  5. The person entitled to delivery of the goods may refer to arbitration, under the Arbitration Act 1961 (Act 38), a claim against the Warehouse Operator for damages resulting from the Warehouse Operator’s failure to deliver within the time provided under sub regulations (2), (3) and (4) of this
  6. In any such arbitration proceedings, the person entitled to delivery of the goods may seek recovery of his actual damages or liquidated damages calculated at one half of one percent (V2 %) of the value of the goods to be delivered for each day’s delay after the time provided in sub regulations (2), (3) and (4) of this regulation.
  7. Where the Warehouse Operator fails to deliver goods within thirty (3) days of the demand by depositor, the Warehouse Operator shall he deemed to be in a failed position under regulation 70 (8) (h) of these Regulations.

Taking of Sample on Delivery

The Warehouse Operator shall take a sample of each lot or truckload of goods so delivered and shall grade it or have it graded by a licensed Grain Inspector or other competent person. When goods are delivered from storage or sold to the Warehouse Operator where stored, receipts must be cancelled, date cancelled, and shall be so marked across the face of the related receipts.

 

Special Powers of Warehouse Operator to Deal With Deteriorated or Out-of-Condition Goods:—

  1. If stored goods deteriorate or their keeping shall deteriorate greatly in value or damage other goods, the Warehouse Operator may give notice that is reasonable and possible under the circumstances to the holder of the receipt for the goods, if the name and address of the holder is known to the Warehouse Operator or if not known to the Warehouse Operator then, to the depositor, requiring that person to satisfy the lien on the goods and to remove them from the warehouse.
  2. If the person to whom a notice under sub- regulation (1) is given fails to satisfy the lien and remove the goods within the time specified in the notice, the Warehouse Operator may sell the goods at public or private sale without

 

The notice referred to in sub-regulation ( I ) may be given by sending it by electronic mail, or registered post or facsimile addressed to the person to whom it is to be given at the last known address of the person. The notice shall be deemed to be validly given if in the case of electronic mail, or facsimile when the automatic text –message sent” or “ok– appears thereafter on the sender’s screen; or in the case of registered post on the third day of the mailing.

 

If’ the Warehouse Operator after a reasonable effort is unable to sell the goods, the Warehouse Operator may dispose of them in such other manner as he deems proper and shall incur no liability for that reason.

From the proceeds of any sale made under this regulation, the Warehouse Operator shall, after satisfying his lien, hold the balance in trust for the holder of the receipt.

No notice shall be necessary if the Warehouse Operator is satisfied on reasonable grounds that, in the circumstances of the case, giving such notices is likely to cause further prejudice to the goods.

If, at any time, the Warehouse Operator is satisfied that the quality of any fungible goods or any part thereof has so deteriorated or is so deteriorating that it is necessary to dispose of the goods, to protect the holders of GGC Warehouse Receipts from loss and time is not sufficient for him to seek their instructions, he may, subject to the regulations in this behalf, dispose of the goods or any part thereof and keep the sale proceeds, after satisfying his lien, in an escrow account for the benefit of the holders of GGC Warehouse Receipts.

In case of disposal of fungible goods under sub- regulation (7), of this regulation, the Warehouse Operator shall, at the choice of the holder of the GGC Warehouse Receipt, either pay the sale proceeds or deliver equivalent goods of the same grade, quality and quantity to him.

 

 

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