Warehouse Receipt Act [Chapter 18:25]

CHAPTER 18:25
WAREHOUSE RECEIPT ACT
ARRANGEMENT OF SECTIONS
Act 13/2007, SI 172/2009
PART I
PRELIMINARY
Section
1. Short title.
2. Interpretation.
PART II
ADMINISTRATION AND REGISTRATION OF WAREHOUSES
3. Office of Registrar.
4. Registration of warehouse operators.
5. Issuance of registration certificates.
6. Register of warehouse operators and warehouses.
7. Annual fee payable in respect of registered warehouses.
8. Amendment of registration certificate.
9. Cancellation of registration.
PART III
LICENSING OF WAREHOUSEPERSONS
10. Licensing of warehousepersons.
11. Issuance of licences.
12. Register of licences.
13. Annual fee payable by warehouse operator on behalf of warehouseperson.
14. Cancellation of licence.
PART IV
WAREHOUSE RECEIPTS
15. Issuance of warehouse receipts.
16. Form and negotiability of warehouse receipts.
17. Replacement of warehouse receipts.
18. Alteration of warehouse receipts.
PART V
DUTIES OF WAREHOUSEPERSONS,WAREHOUSE OPERATORS LIEN AND LIABILITY OF WAREHOUSE OPERATORS
19. Duties of warehousepersons.
20. Warehouse operator’s lien.
21. Cancellation of warehouse receipts.
22. Liability of warehouse operator.
23. Manner of storing agricultural commodities.
24. Termination of storage.
PART VI
NEGOTIATION AND TRANSFER OF WAREHOUSE RECEIPTS
25. Requirements for negotiability.
26. Rights acquired by negotiation.
27. Rights and obligations of transferors and transferees.
28. Conflicting claims.
PART VII
GENERAL
29. Minister may make regulations.
30. Offences.
31. Amendment of Schedule.
SCHEDULE
Agricultural Commodities.
AN ACT to provide for the establishment and registration of warehouses associated with the issuing of
warehouse receipts and the licensing of warehousepersons; to provide for the storage of agricultural
commodities in registered warehouses; to provide, for the setting up of a system of inspection, grading and
weighing of such agricultural commodities; to provide for a negotiable warehouse collateral receipt system;
and to provide for matters incidental to or connected with the foregoing.
[Date of commencement : 14th December, 2007.]
PART I
PRELIMINARY
1 Short title
This Act may be cited as the Warehouse Receipt Act [Chapter 18:25].
2 Interpretation
In this Act—
“agricultural commodity” means any agricultural commodity specified in the Schedule;
“depositor” means a person who deposits an agricultural commodity in a warehouse;
“holder” means a person who is in lawful possession of a warehouse receipt issued or endorsed to him or her or
to the person’s order;
“licence” means a warehouseperson’s licence issued in terms of Part III;
“Minister” means the Minister of Agriculture or any other Minister to whom the President may from time to time
assign the administration of this Act;
“prescribed” means prescribed in terms of the regulations made under section 29;
“receipt” means a warehouse receipt;
“registered”, in relation to a warehouse operator or warehouse, means registered in terms of section 4;
“Registrar” means the Registrar of Warehouses referred to in section 3(1) or any person performing his or her
functions in terms of section 3(3);
“warehouse” means any building, structure or protected enclosure in which an agricultural commodity is stored
for a third party in return for a storage or processing charge;
“warehouse operator” means a person who operates a registered warehouse;
“warehouse receipt” means an acknowledgement in writing by a warehouseperson of the receipt for storage in a
warehouse of an agricultural commodity belonging to a depositor;
“warehouseperson” means a person who is licensed in terms of section 10.
PART II
ADMINISTRATION AND REGISTRATION OF WAREHOUSES
3 Office of Registrar
(1) There shall be a Registrar of Warehouses and such other officers as may be necessary for the proper administration
of this Act, whose offices shall be public offices and form part of the Public Service.
(2) The Registrar shall be responsible for—
(a) registering warehouses and cancelling their registration; and
(b) inspecting registered warehouses at least once in every calendar year; and
(c) licensing warehousepersons; and
(d) issuing to warehousepersons books of warehouse receipts; and
(e) performing such other functions as are conferred or imposed upon him or her in terms of this Act or any
other enactment.
(3) Subject to the directions of the Registrar, the other officers referred to in subsection (1) shall perform such of
the Registrar’s functions as the Registrar may assign to them.
(4) The Registrar shall have power to delegate any of his or her powers to any officer other than the power of
delegation.
4 Registration of warehouse operators
(1) No person shall carry on the business of operating any warehouse for the storage of any agricultural commodity
in respect of which warehouse receipts may be issued, unless such person is registered in terms of this section.
(2) No person other than a company or other body corporate may apply to be registered as a warehouse operator.
(3) An application for the registration of a warehouse operator shall be made to the Registrar in the prescribed
form and manner and shall be accompanied by—
(a) a certified copy of the applicant’s memorandum of association or other constitution together with its articles
of association or other rules for the conduct of its business; and
(b) details of the qualifications and experience of the warehouseperson who shall be responsible for the management
of each warehouse; and
(c) details of the applicant’s authorised and paid up share capital or a statement of the applicant’s financial capacity
to operate a warehouse or both, if the Registrar so requires; and
(d) a plan and specifications of each warehouse to be operated by the applicant; and
(e) in the case of an existing warehouse, a current insurance policy in terms of which the warehouse and its contents
are insured against fire, storm-damage, theft and other similar perils; and
(f) the prescribed fee; and
(g) such other information and documents as may be prescribed or as the Registrar may reasonably require.
(4) If on consideration of an application made in terms of subsection (3) the Registrar is satisfied that—
(a) the applicant has sufficient authorised and paid up share capital or has the financial capacity to carry on the
business of operating any warehouse; and
(b) every person who is the applicant’s warehouseperson is, as far as can be reasonably ascertained, a fit and
proper person to hold that office; and
(c) the applicant is likely to conduct its business in a prudent manner; and
(d) the documents and information submitted with the application do not disclose that undesirable methods of
conducting business are being or are likely to be adopted by the applicant; and
(e) the applicant complies with such other requirements as may be prescribed; and
(f) the warehouse, following an inspection, complies with subsection (6); and
(g) generally, the applicant will comply with such of the provisions of this Act as are applicable to it;
the Registrar shall within fifteen days of receiving the application register the applicant as a warehouse operator.
(5) If on consideration of an application made in terms of subsection (3) the Registrar—
(a) is not satisfied as to any matter referred to in subsection (4); or
(b) considers that it would not be in the public interest to register the applicant;
the Registrar shall refuse to register the applicant concerned
Provided that—
(i) before refusing to register an applicant the Registrar shall notify the applicant in writing within ten days of
receiving the application, that he or she proposes to refuse the application, giving his or her reasons for doing
so and shall afford the applicant an adequate opportunity to make representations on the matter;
(ii) within ten days after deciding to refuse to register an applicant the Registrar shall notify the applicant in
writing of his or her decision and of the reasons for it.
(6) For the purposes of subsection (4)(f), every warehouse building referred to in the application for registration
in terms of subsection (3) shall—
(a) be structurally sound and secure; and
(b) have doors which are fitted with suitable appliances for affixing locks; and
(c) have windows secured with iron bars or bolts and clinched inside; and
(d) meet reasonable standards relating to ventilation, lighting, cleanliness, waterproofing and safety; and
(e) have suitable facilities therein for the grading, classifying, processing or storage, as the case may be, of an
agricultural commodity.
5 Issuance of registration certificates
(1) Upon registering a warehouse operator in terms of section 4, the Registrar shall issue the applicant a registration
certificate which shall be in the prescribed form.
(2) The registration certificate of a warehouse operator may be issued subject to such terms and conditions as
may be prescribed or as the Registrar may reasonably determine.
6 Register of warehouse operators and warehouses
(1) The Registrar shall maintain a register of warehouse operators and warehouses.
(2) The register kept in terms of subsection (1) shall be open for inspection by members of the public at all reasonable
times at the office of the Registrar on payment of the prescribed fee.
7 Annual fee payable in respect of registered warehouses
(1) A warehouse operator shall pay to the Registrar in respect of each registered warehouse an annual fee of the
prescribed amount.
(2) The annual fee referred to in subsection (1) shall be paid by such date and in such manner as may be prescribed.
8 Amendment of registration certificate
(1) Subject to this section, the Registrar may at any time amend a registration certificate or any term or condition
of a registration certificate—
(a) to correct any error in the registration certificate; or
(b) if the warehouse operator requests the amendment; or
(c) if the Registrar considers the amendment necessary to reflect the true nature of the business which the warehouse
operator is conducting; or
(d) if for any other reason the Registrar considers the amendment necessary or desirable in the public interest.
(2) Before amending a registration certificate in terms of subsection (1), otherwise than at the request of the
warehouse operator, the Registrar shall notify the warehouse operator in writing not less than ten days before the proposed
amendment of the nature of the amendment he or she proposes to make and of his or her reasons for wishing to
make the amendment, and shall give the warehouse operator an adequate opportunity to make representations on the
matter.
(3) If the Registrar refuses to amend a registration certificate at the request of the warehouse operator, he or she
shall, within ten days after reaching the decision, notify the warehouse operator in writing of his or her decision and
the reasons for it.
9 Cancellation of registration
(1) The Registrar may, by notice in writing to a registered warehouse operator, cancel its registration if he or she
has reasonable grounds for believing that—
(a) any warehouse operated by the warehouse operator is no longer managed by a licensed warehouseperson; or
(b) any registered warehouse operated by the warehouse operator no longer complies with the requirements of
section 4(6); or
(c) the warehouse operator has failed to comply with this Act or the terms and conditions of its registration.
(2) Before cancelling the registration of a registered warehouse operator the Registrar shall notify the warehouse
operator in writing that he or she proposes to cancel its registration, giving his or her reasons for doing so, and shall
afford the warehouse operator an adequate opportunity to make representations in the matter or rectify the problem
giving rise to the threatened cancellation.
(3) Within ten days after cancelling the registration of a registered warehouse operator the Registrar shall notify
the warehouse operator in writing of the cancellation of such registration and the reasons for it.
PART III
LICENSING OF WAREHOUSEPERSONS
10 Licensing of warehousepersons
(1) No person shall be responsible for the management of a warehouse operated by a registered warehouse operator
unless such person is the holder of a valid licence issued in terms of this Part.
(2) An application for a licence shall be made to the Registrar in the prescribed form and manner and shall be accompanied
by details of the qualifications and experience of the warehouseperson.
(3) An applicant shall be deemed to be a fit and proper person to be licensed as a warehouseperson if in the opinion
of the Registrar—
(a) he or she has the prescribed qualifications to be a warehouseperson of the warehouse concerned; or
(