Warehousing (Development & Regulation) Act, 2007


Dated 08th January 2013

THE WAREHOUSING (DEVELOPMENT AND REGULATION) ACT, 2007:NO. 37 OF 2007

An Act to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:

Short title, extent and commencement
1. (1) This Act may be called the Warehousing (Development and Regulation) Act, 2007.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

The warehousing (Development and Regulation) Act, 2007 has four sub components that defines the entire gamut of this act namely;
1. The Warehousing Development & Regulatory Authority (Regn. Of Accreditation Agency) Regulations 2011.
2. The Warehousing Development & Regulatory Authority (Negotiable warehouse Receipts) Regulations, 2011.
3. The Warehousing Development & Regulatory Authority (Warehouse Accreditation) Regulations, 2011.
4. The Warehousing Development & Regulatory Authority (Meetings) Regulation 2012.

REGULATION OF WAREHOUSING BUSINESS:

A. Requirement of registration for warehouses issuing negotiable warehouse receipts-

  1. No person shall commence or carry on the warehousing business unless he has obtained a registration certificate in respect of the concerned warehouse or warehouses granted by the Authority under this Act.
  2. Provided that a person carrying on the warehousing business immediately before the commencement of this Act shall be allowed to carry on such business, in case he has made an application for registration within thirty days from the date of such commencement:

NOTE: Provided further that no such registration shall be required for warehouses which do not propose to issue negotiable warehouse receipt.

B. REGISTRATION OF WAREHOUSES-

A) Any person desirous of commencing or carrying on the business of maintaining a warehouse issuing negotiable warehouse receipts may make an application to the Authority for registration in respect of one or more warehouses owned or occupied by him.

B) Every application for registration under sub-section (1) shall be in such form and manner and shall be accompanied by such fees as may be prescribed.

C. REGISTRATION OF ACCREDITATION AGENCIES-

A) The Authority shall, from time to time, determine the number of accreditation agencies as it may authorize to issue certificate of accreditation to warehouses issuing negotiable warehouse receipts.
B) Any person fulfilling the qualifications and other requirements as may be prescribed and desirous of functioning as an accreditation agency under this Act may make an application to the Authority seeking its registration as such under this Act.
C) Every application under sub-section (2) shall be in such form and manner and shall be accompanied by such fees and security deposit as may be prescribed.
This issue is extensively covered under the Warehouse Development Regulatory Authority (Registration of Accreditation Agency) Regulations, 2011.

D. WAREHOUSE RECEIPTS-
Warehousing receipts can be broadly classified into 2 main frames namely; Non-negotiable and negotiable. The non-negotiable receipt limits the liability clause on the warehousing men. However if a negotiable receipt makes the warehousing men liable for financial & criminal liability arising if any in the course f transaction. This point is briefly covered in the Warehouse Development & Regulatory Authority (Negotiable warehouse receipts) regulations, 2011.

E. THE WAREHOUSING DEVELOPMENT AND REGULATORY AUTHORITY-
This chapter clearly explains about the functions, regulatory & statutory powers of the Authority. It also gives the detail about the constituent members of the Authority, their exercisable powers, limitations etc. This section clearly states the tenure of the Authority, process of removal from office, the perks & allowances etc. This aspect can be understood in details from the Warehouse Development & Regulatory (Meetings) Regulations 2012.

Thus the WRDA Act is a pivotal act in the domain of Indian warehousing activities. It shall shape the warehousing transactions happens in India. This shall entail a long term effect in terms of consolidating & organizing the warehousing sector.

SOURCE: GOVT. OF INDIA, Ministry of Commerce and Industry

 

Advertisements

About neeraj prasad

contact me on neeraj001@gmail.com if you wish to have any clarification !!
This entry was posted in DGFT. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s