Warehouse Receipt

What is a Warehouse Receipt?

A Warehouse Receipt refers to the document issued by the custodian to the depositor upon receipt of stored goods, allowing for the withdrawal of these goods. Typically issued by warehouses or logistics companies, it serves as proof that goods have been stored in a designated warehouse and can be retrieved or transferred at any time. The warehouse receipt simplifies the trading and circulation of goods and is one of the essential financial tools in modern logistics and trade.

The use of warehouse receipts helps enhance the liquidity and efficiency of goods transactions, playing a crucial role in commodity trade and financial markets. Holders of warehouse receipts can trade goods by transferring the receipt without physically moving the goods. Additionally, warehouse receipts can be used as pledges or collateral for financing, providing more options and flexibility for obtaining funds.

Types of Warehouse Receipts

Warehouse receipts can be categorized based on issuing institutions, the nature of the goods, and functional characteristics. Here are some common types of warehouse receipts.

Classification by Record Method

1. Named Receipt: A receipt that records the name of the depositor or holder, requiring endorsement or signature for transfer.
2. Bearer Receipt: A receipt that does not record the name of the depositor or holder, requiring only delivery of the receipt for transfer.
3. Classification by Nature: Standard Receipts and General Receipts. Standard receipts meet the delivery standards set by the futures exchange and can be used for futures delivery or transfer. General receipts do not meet these standards and are used for withdrawing goods or trading in the spot market.

Classification by Nature of Goods

1. Agricultural Product Receipt: Used for storing and trading agricultural products, such as crops and livestock.
2. Industrial Product Receipt: Used for storing and trading industrial raw materials, minerals, and energy products.
3. Precious Metal Receipt: Used for storing and trading precious metals such as gold and silver.

Classification by Functional Characteristics

1. Spot Receipt: Corresponds to actual goods stored in a warehouse and can be used for withdrawal or transfer.
2. Goods Ownership Receipt: The holder owns a certain quantity of goods and can transfer and trade goods ownership through the receipt.
3. Withdrawal Receipt: The depositor or holder can use this receipt to withdraw goods from the custodian.
4. Pledge Receipt: The depositor or holder uses this receipt as collateral for a pledge, allowing the pledgee to dispose of the goods represented by the receipt upon the fulfillment of the debt term.
5. Finance Receipt: Used for mortgage or pledge financing, increasing the flexibility of goods as collateral for financing.

Contents of a Warehouse Receipt

As an essential tool in modern logistics, trade, and financial markets, a warehouse receipt generally includes the following contents.

1. Goods Information: Detailed information about the goods stored, including type, specifications, and quantity.
2. Warehouse Information: Specifies the name, address, and contact details of the specific warehouse storing the goods.
3. Ownership: The receipt serves as proof of ownership; the holder of a valid warehouse receipt is the legal owner of the goods and has the right to manage or trade them.
4. Receipt Number: Each warehouse receipt has a unique identifier for tracking and managing the batch of goods.
5. Issue Date and Validity: Indicates the date of issue and the validity period of the warehouse receipt. The receipt can be used for goods transactions within its validity period and needs to be renewed upon expiration.
6. Issuing Authority and Signature: Generally issued by storage companies, logistics enterprises, or relevant government bodies, with a stamp on the receipt to ensure its legality and credibility.
7. Transfer Terms: Warehouse receipts are often transferable; the holder can endorse or use other legal methods to transfer the receipt to another party, facilitating the circulation and transaction of goods.
8. Additional Information: Sometimes, the receipt includes additional details such as goods quality and pledging information to aid better management and utilization of the goods.

Characteristics of Warehouse Receipts

Different types of warehouse receipts may exhibit various characteristics. Here are some common ones:

1. Valuable Securities: Represents ownership and the right to withdraw stored goods. They can be circulated in the market through endorsement or transfer and can be pledged or delivered.
2. Standardization: Standardized goods delivery certificate recording the goods according to national, exchange, or other institutional standards for quality, quantity, and packaging, facilitating buyer and seller verification and receipt.
3. Transferability: Transferable proof of goods ownership, allowing holders to achieve goods transactions and circulation through the transfer of the receipt.
4. Divisibility: Some warehouse receipts can be divided, enabling independent transactions of part of the goods, increasing transaction flexibility.
5. Guaranteeing Goods Rights: Holders of warehouse receipts own the corresponding quantity of goods and can obtain property rights through the receipt to ensure their legal rights in transactions.
6. Usable for Financing: Used as collateral for goods mortgage or pledge, making financing and borrowing possible.
7. Unified Supervision: Through electronic, networked, and informational methods, governments, exchanges, or other institutions manage the registration, issuance, transfer, and pledge of warehouse receipts.

Functions of Warehouse Receipts

Warehouse receipts serve multiple functions in the modern economy, including the following:

1. Proof of Ownership: The holder of a warehouse receipt has ownership of the corresponding quantity of goods, ensuring the holder's rights in transactions.
2. Circulation and Trading: As a transferable proof of goods ownership, it allows goods to be conveniently traded and circulated in the market.
3. Financing Tool: Can be used as collateral for goods mortgage or pledge, enhancing fund utilization efficiency.
4. Improving Transaction Efficiency: Simplifies transaction processes, reducing costs and time associated with physical goods transport and delivery, improving transaction efficiency.
5. Promoting Market Circulation: The circulation of warehouse receipts makes goods transactions more convenient, facilitating market circulation and price discovery.
6. Enhancing Market Transparency: As proof of goods, it provides information on quantities, qualities, and storage locations, increasing market transparency.
7. Ensuring Risk Management: Can be used for risk management, such as hedging price fluctuations and avoiding storage losses.