Warehouse Receipt

A warehouse receipt is the document a warehouse issues for goods it holds in storage. The Uniform Commercial Code defines it as "a receipt issued by a person engaged in the business of storing goods for hire" (UCC 1-201), and treats it, like a bill of lading, as a document of title. It records what was received, where it is stored and on what terms, and who is entitled to take the goods out.

Negotiable vs non-negotiable

• Negotiable: the goods are to be delivered to bearer or to the order of a named person (UCC 7-104). A holder to whom it is duly negotiated gets title to the document and to the goods (UCC 7-502), which is why a negotiable receipt can be used to sell or borrow against stored goods
• Non-negotiable: any other receipt, or one marked conspicuously as non-negotiable. The warehouse delivers to the named person or on that person's instructions

What the receipt should show

A receipt need not follow a set form, but under UCC 7-202 the warehouse is liable for damages caused by leaving out any of these:

• The location of the warehouse facility, the date of issue and a unique identification code
• Whether the goods will be delivered to bearer, to a named person or to a named person or its order
• The storage and handling rates
• A description of the goods or their packages
• The signature of the warehouse or its agent
• Any ownership interest the warehouse has in the goods, and any advances or liabilities for which it claims a lien

The warehouse's duties and rights

• Duty of care: the warehouse must take the care a reasonably careful person would, and the receipt or storage agreement can limit the amount of its liability (UCC 7-204)
• Lien: it has a lien on the goods for storage and transportation charges, including demurrage and terminal charges, insurance and labor (UCC 7-209)

Farm products: the US Warehouse Act

For agricultural products there is also a federal scheme. Under the United States Warehouse Act (7 U.S.C. 241 et seq.) the Secretary of Agriculture licenses warehouse operators who store agricultural products, and receipts may be issued electronically. Federal licensing is voluntary, though many states and some Commodity Credit Corporation storage agreements require either a state or a federal license.

Not to be confused with

• Dock receipt: a port document acknowledging that export cargo was received for loading on a ship
• Customs warehouse entry: a CBP filing that puts imported goods into a bonded warehouse with duty deferred
• Delivery order: an instruction to a warehouse or carrier to release goods to someone
• Bill of lading: the document of title a carrier issues for goods in transit

Check the receipt against the packing list and note any shortage or damage at receiving. See Airlift's warehousing service.