UNITED STATES DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

WA-402

LICENSING AGREEMENT 

FOR 

GRAIN and RICE WAREHOUSE 

OPERATORS 
 

Form Approved - OMB No. 0581-0305 

U. S. DEPARTMENT OF AGRICULTURE 

 Agricultural Marketing Service 

United States Warehouse Act 

WA-402 

(07-31-18) 

Licensing Agreement For Grain And Rice Warehouse Operators 

Licensing Agreement For Grain And Rice Warehouse Operators ................................................................................. 2 

Section A - Definitions .................................................................................................................................................. 2 

Section B - Qualifications.............................................................................................................................................. 6 

Section C - Financials .................................................................................................................................................... 7 

1. Financial Requirements ................................................................................................................................... 7 

2. Financial Reporting ......................................................................................................................................... 7 

3. Accepting Other Financial Statements ............................................................................................................ 8 

4. Special Cases - Assets ..................................................................................................................................... 8 

Section D - Financial Assurance ................................................................................................................................... 8 

1. Computation .................................................................................................................................................... 8 

2. Acceptable Forms ............................................................................................................................................ 9 

Section E - Duties of the Warehouse Operator ............................................................................................................10

1. In general .......................................................................................................................................................10

2. Warehousing ..................................................................................................................................................10

3. Facilities ........................................................................................................................................................12

4. Facility Security.............................................................................................................................................12

5. Fair Treatment ...............................................................................................................................................12

6. Insurance .......................................................................................................................................................12

7. Business Hours ..............................................................................................................................................13

8. System of Records .........................................................................................................................................13

9. Reports ..........................................................................................................................................................15

10. Records ..........................................................................................................................................................15

11. Public Tariff and Schedule of Charges ..........................................................................................................15

12. Grades and Grain Quality Inspections ...........................................................................................................16

13. Scales and Weighing .....................................................................................................................................16

14. Prompt Delivery ............................................................................................................................................16

15. Identity-Preserved and Conjoint-Storage Grain ............................................................................................17

16. Storage Obligations .......................................................................................................................................17

17. Containerized Grain Storage .........................................................................................................................18

18. Delivery of Commingled Grain .....................................................................................................................18

19. Loading Out Without Weighing ....................................................................................................................18

20. Out-of-Condition and Damaged Grain ..........................................................................................................18

21. Inspections and Examinations of Warehouse ................................................................................................19

22. Transfer of Grain ...........................................................................................................................................19
Section F - Warehouse Receipts ..................................................................................................................................21

1. General ..........................................................................................................................................................21

2. Paper Warehouse Receipts ............................................................................................................................22

3. Electronic Warehouse Receipts (EWRs) .......................................................................................................26

Section G - Service Licenses .......................................................................................................................................28

1. Warehouse Operator’s Responsibility ...........................................................................................................28

2. Applicant’s Responsibility ............................................................................................................................29

3. Duties of the Licensed Inspector, Sampler, Classifier, and/or Weigher ........................................................29

4. Service License Format ................................................................................................................................. 30

Section H - Inspection and Weight Certificates ..........................................................................................................30

1. Inspection Certificates ...................................................................................................................................30

2. Weight Certificates ........................................................................................................................................31

3. Inspection and/or Weight Certificates ...........................................................................................................31

Section I - Determining Quality ..................................................................................................................................31

1. Official United States Standards ...................................................................................................................31

2. Standards of Kind, Class, and Grade for Other Grain ....................................................................................31

Section J - Grain Grading Appeals ..............................................................................................................................32

1. Ability to Appeal ...........................................................................................................................................32

2. Appeal Procedure ..........................................................................................................................................32

3. Request for Appeal ........................................................................................................................................32

4. Appeal Samples .............................................................................................................................................32

5. Owner Not Compelled to Store Grain ...........................................................................................................33

Section K - Licensing of Emergency and Temporary Grain Storage ...........................................................................33

Section L - Warehouses Regular for Delivery in Terminal and Futures Contract Markets .........................................34

Section M - Dispute Resolution and Arbitration .........................................................................................................35

Section N - Temporary Suspension .............................................................................................................................36

Section O - Unjust Enrichment ....................................................................................................................................37

Section P - Unearned Storage ......................................................................................................................................37

Section Q - Fines and Penalties ................................................................................................................................... 37 

Section R - Warehouse Operator Failures and Defaults - Remedies ...........................................................................37

Section S - Fees ...........................................................................................................................................................39
WA-402(07-31-18) Page 1 of 41

Licensing Agreement for Grain and Rice Warehouse Operators 

As a condition of initial licensing and continued licensing under the United States Warehouse Act (USWA), 

administered by the Administrator of the United States Department of Agriculture (USDA), Agricultural 

Marketing Service (AMS), the Warehouse Operator agrees to the terms and conditions set forth in this WA-402 

Licensing Agreement for Grain and Rice Warehouse Operators (Agreement) and the regulations found at 7 CFR 

Part 735 and the statute found at 7 U.S.C. § 241 et seq. 

No person may represent themselves as licensed under the USWA unless holding a valid (neither suspended nor 

revoked) license under the USWA. 

Any person engaged in business as a Warehouse Operator, but not licensed under the USWA, is barred from 

participation in or benefit from any USWA activity or its claimants from any of the USWA protections or coverage. 

The USWA, regulations located at 7 CFR Part 735, this Agreement and its addenda prevail to the extent that the 

USWA, the regulations located at 7 CFR Part 735, this Agreement and its addenda conflict with the laws, 

regulations or practices of the various states, localities or municipalities. 

The following are included by reference: 

United States Warehouse Act (7 U.S.C. § 241 et seq). 

Agricultural Marketing Act of 1946 (7 U.S.C. § 1621-1627), as amended. 

Commodity Exchange Act (7 U.S.C. § 1-22), as amended. 

United States Grain Standards Act (7 U.S.C. § 71-87). 

Provider Agreement to Electronically File and Maintain Warehouse Receipts and United States Warehouse Act 

Documents (AMS form WA-460) and its applicable addenda and appendices. 

Inspecting Grain: Practical Procedures for Grain Handlers and other training materials issued by the USDA’s 

Agricultural Marketing Service [Federal Grain Inspection Service] (AMS-FGIS). 
WA-402(07-31-18) Page 2 of 41

Section A - Definitions 

Administrator. The AMS designee under whose general direction and supervision all provisions and activities 

regulated under the USWA are administered. 

Agricultural Marketing Service. An agency of the USDA whose jurisdiction includes administration of the USWA. 

Authorized Individual. An individual, including a warehouse examiner, designated by AMS to engage in activities 

authorized under the USWA. 

Bin. A bin, tank, interstice, or other container in a warehouse or other space as approved by AMS in which bulk grain 

may be stored. 

Board of Trade. A designated futures contract market authorized under the Commodity Futures Modernization Act 

of 2000, as amended. 

Business Day. A calendar day, excluding Saturday, Sunday, or legal holidays (unless business activity occurred) as 

observed by the Chicago Board of Trade (CBOT), a designated contract market. 

Central Filing System (CFS). An electronic filing system operated and maintained by a provider, as a disinterested 

third party, authorized by AMS, where information relating to warehouse receipts, USWA documents, and other 

electronic documents is recorded and maintained in a confidential and secure fashion independent of any outside 

influence or bias in action or appearance. 

Certificate. A USWA document that bears specific assurances under the USWA or warrants a person to operate or 

perform in a certain manner and sets forth specific responsibilities, rights, and privileges granted to the person under 

the USWA. 

Collateral Warehouse Receipts. Negotiable warehouse receipts issued by Warehouse Operators to themselves that 

enable Warehouse Operators to pledge unencumbered company-owned grain stored within their licensed warehouse 

space as loan security or collateral. 

Commingled. The storage or handling of bulk grain under any circumstance other than identity-preserved or 

conjoint-grain storage, including all depositor and company-owned grain transferred or delivered to a third-party 

Warehouse Operator for storage or handling. 

Company-Owned Grain. Grain for which legal title has passed to the Warehouse Operator. 

Composite Sample. The combining and splitting of a depositor’s representative grain sample drawn from multiple 

conveyances to determine the aggregate quality of a specific lot. 

Conjoint Storage. A storage obligation for grain to multiple depositors that identifies and denotes specific binning 

methods that result in the segregated storage and handling of such grain with like characteristics apart and separate 

from all other grain. 

Contract. A legally binding agreement between the producer/depositor/owner and the Warehouse Operator that 

establishes certain specific, legal obligations between the parties. 

Control of the Warehouse. The Warehouse Operator's ultimate responsibility for the operation and integrity of the 

warehouse storage facility by ownership, lease, or operating agreement. 

Conveyance. The individual transportation unit (truck, railroad car, unit train, barge, vessel, or other such unit) as 

determined by AMS, used in receiving or shipping grain. 

Crop Year. The 12-month period following a crop’s normal harvest period.

Current Assets. Assets, including cash, reasonably expected to be realized in cash or sold or consumed during the 

normal operating cycle of the business, or within one year if the operating cycle is shorter than one year. 

Current Liabilities. Those financial obligations that are expected to be satisfied during the normal operating cycle 

of the business, or within one year if the operating cycle is shorter than one year. 
WA-402(07-31-18) Page 3 of 41

Daily Position Record. A record of grain inventory status summarizing all grain stored, handled, or under the 

control of the Warehouse Operator in licensed space. 

Depositor. The person or legal title holder depositing grain in a licensed grain warehouse for storage and who 

maintains title to the grain.

Direct Shipments. Grain delivered for the account of the Warehouse Operator at a location other than the 

Warehouse Operator’s USWA-licensed warehouse facility. 

Dockage. Material removed from an original grain sample as defined by the United States Standards. 

Electronic Document. A document that is generated, sent, received, or stored by electronic, optical or similar 

means, including, but not limited to, electronic data interchange, advanced communication methods, electronic mail, 

telegram, telex or telecopy. 

Electronic Warehouse Receipt (EWR). A warehouse receipt authorized by AMS to be electronically issued or 

transmitted under the USWA. 

EWR Provider. A person or entity authorized by AMS as a disinterested third party that maintains one or more 

confidential and secure electronic systems independent of any outside influence or bias in action or appearance. 

Examiner. An individual designated by AMS for the purpose of examining warehouses or for any other activities 

authorized under the USWA. 

Field Warehouse Agreement. A third-party financing and operational lease agreement whereby USWA 

Warehouse Operators relinquish partial or full control of their USWA-licensed facility to a field warehouse 

company (and its disinterested local third-party custodian) who may issue non-USWA warehouse receipts for 

commingled commodities, as financing collateral for the benefit of its specific client(s). 

Financial Assurance. The surety bond or other financial obligation authorized by AMS that is a condition of 

receiving a license or authorization under the USWA. 

Force Majeure. Severe weather conditions, fire, explosion, flood, earthquake, nuclear incident, nuclear reaction, 

nuclear radiation, radioactive contamination, insurrection, riot, strike, labor dispute, acts of terrorism, acts of civil or 

military authority, non-availability of transportation, or any other cause beyond the control of the Warehouse 

Operator or provider that renders performance impossible, as determined by AMS. 

Foreign Material. Material remaining in a grain sample after removal of dockage as defined by the United States 

Standards. 

Futures Contract Market. Any grain market designated as a futures contract market under authority of the 

Commodity Exchange Act, as amended. 

Grain. All products commonly referred to as grain, such as wheat, corn, oats, barley, rye, rice, soybeans, emmer, 

sorghum, triticale, millet, pulses (other than dry edible beans), sunflower seed, rapeseed, canola, safflower, flaxseed, 

mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary for the purpose of this agreement, 

and other products as are ordinarily stored in grain warehouses, subject to the approval of AMS. 

Grain Bank. Grain belonging to others intended to be returned to the depositor or lawful owner for use. 

Holder. A person who has possession, in fact or by operation of law, of a paper or electronic warehouse receipt, 
WA-402(07-31-18) Page 4 of 41

USWA electronic document, or any electronic document. 

Identity Preserved. The practice of storing and handling grain separate from all other grain, so the actual grain 

deposited in the warehouse, and no other, may be delivered to the person holding title to such grain. 

Inspector, Sampler, Classifier, and/or Weigher. A person licensed under the USWA to inspect, sample, classify, 

and/or weigh grain who determines the grade and/or weight of grain stored at a warehouse licensed under the 

USWA. 

Lawful Owner. The person or legal entity that has legal title to grain. 

Load Out. The removal of grain from the Warehouse Operator’s licensed warehouse space. 

Lot. The quantity and quality of single or multiple deliveries of grain received into a warehouse for which one 

inspection certificate is issued by a licensed inspector, sampler, classifier and/or weigher at a warehouse licensed 

under the USWA. 

Master Daily Position Record. A record of grain inventory status summarizing the location daily position record 

(DPR) including all grain stored, handled, or under the control of the Warehouse Operator by license. 

Negotiable Warehouse Receipt. A paper or electronic document of title in which the ownership of the grain 

represented by the warehouse receipt is transferrable by delivery or endorsement. 

Net Weight. The weight of grain after foreign material, dockage, and excess moisture weight have been deducted. 

Net Worth. The balance amount after financial liabilities are subtracted from allowable assets. In determining 

allowable assets, credit may be given for appraisal of real property, less improvements, and for the appraisal of 

insurable property, such as buildings, machinery, equipment and merchandise inventory, only to the extent that such 

property is protected by insurance against loss or damage by fire, lightning and other risk. Such insurance must be 

in the form of lawful insurance policies issued by insurance companies authorized to conduct such business and 

subject to service of process in the State in which the warehouse is located. AMS will determine what assets are 

allowable and under what conditions appraisals may be used. 

Non-Negotiable Warehouse Receipt. A paper or electronic document that cannot be transferred by endorsement or 

delivery to another holder or person. 

Non-Storage Grain. Grain received temporarily into a warehouse for conditioning, transferring or assembling for 

immediate shipment, or specific lots of grain moving through a warehouse for current marketing or other use, 

against which no warehouse receipts are issued and no storage charges assessed. Examples include, but are not 

limited to, custom drying of grain, cleaning of seed, etc. 

Official Service Provider. An agency and/or laboratory authorized by Federal Grain Inspection Service (FGIS) to 

provide official inspection and/or weighing services authorized under the United States Grain Standards Act, as 

amended (USGSA). 

Open-Storage Grain. Grain obligations to others that are not warehouse-receipted or company-owned. 

Out-of-Condition Grain. Grain with quality deterioration due to moisture migration, mold, insect damage, heat 

damage, or other factors. 

Persons. Individuals, corporations, companies, associations, firms, partnerships, societies, and joint stock 

companies, a State, or a political subdivision of a State. 

Principal. An officer, director, owner, partner, member, or key employee who has major oversight and managerial 

responsibilities within the company applying for or holding a USWA license. 
WA-402(07-31-18) Page 5 of 41

Quality and Quantity. The legal, operational, managerial, and financial liability of the Warehouse Operator for 

any grain obligation(s), including company-owned grain, handled or stored by the Warehouse Operator. 

Schedule of Charges. The public tariff or uniform rate or amount charged by the Warehouse Operator for specific 

services offered or rendered under the USWA. 

Schedule of Fees. Those fees charged and assessed by the Secretary for licensing, provider agreements, or services 

furnished under the USWA to help defray the costs of administering the USWA. 

Screenings. The portion of cereal grains, oilseeds or legume seed crop refuse remaining after cleaning that contains 

variable proportions of damaged, cracked, and small whole kernels, weed seeds, forage residue, chaff, dirt, dust 

and/or other foreign materials. 

Secretary. The Secretary of the United States Department of Agriculture. 

Signature. Any name, mark, or writing used with the intention of authenticating a document. It may be a handinscribed original, facsimile, digital, electronic, or any other form of authentication as approved by AMS. 

Split Sample. The portion of a retained representative sample derived from grain delivered for, or into, storage in 

accordance with authorized grain-evaluation procedures. If an appeal of the original inspection result is requested, 

the split sample is to be provided to the official inspection agency conducting the appeal inspection for independent 

evaluation. 

Storage Grain. All grain received into, stored within, or delivered out of the warehouse that is not classified as 

non-storage. 

Transfer of Grain. When, under certain circumstances, the Warehouse Operator transfers or forwards grain by 

physical movement or by other methods to a Warehouse Operator for continued storage, subject to the approval of 

AMS. 

United States Standards. The quality standards maintained for agricultural products regulated by either the 

Agricultural Marketing Act of 1946 as amended (AMA), or the USGSA. 

Unreceipted Obligations. Grain deposited in the warehouse which is not represented by a warehouse receipt, but 

for which the Warehouse Operator has a storage obligation. This includes, but is not limited to, open storage grain, 

grain bank, and unsettled company-owned obligations. 

USWA Inspection and/or Weight Certificate. The source document that establishes the grade and/or weight 

obligation of each specific grain lot accepted for storage in and/or loaded out of the Warehouse Operator’s licensed 

warehouse space. 

Warehouse. A structure or other authorized storage facility, as determined by AMS, in which any agricultural 

product may be stored or handled for the purpose of interstate or foreign commerce. 

Warehouse Capacity. The maximum quantity of grain that the warehouse will accommodate when stored in a 

manner customary to the warehouse and within the limits of the amount of financial assurance that the Warehouse 

Operator provides, as determined by AMS. 

Warehouse Operator. A person lawfully engaged in the business of storing or handling agricultural products. 

Warehouse Receipt. A document of title (receipt) issued in accordance with the USWA, including an electronic 

receipt, which evidences a Warehouse Operator’s storage obligation to the depositor or owner of an agricultural 

product in the warehouse. 

Warehousing Activities and Practices. Legal, operational, managerial, or financial duties that the Warehouse 
WA-402(07-31-18) Page 6 of 41

Operator has regarding grain handled or stored at the USWA warehouse. 

Section B - Qualifications 

In general, the Warehouse Operator under the USWA shall (each of the following applies): 

1. be a responsible person or principal with a good business reputation, who: 

A. is in the business of public warehousing and has knowledge of, and experience in, generally accepted grain 

warehousing and handling practices. 

B. is competent and willing to conduct such a warehouse in accordance with the USWA, Federal regulations, 

and this Agreement. 

C. has not committed a fraudulent or criminal offense indicating a lack of business integrity or business 

honesty that seriously or directly undermines the person’s responsibility as a Warehouse Operator.

2. have facilities that: 

A. are physically and operationally suitable for the proper storage of grain and that specifically: 

(1) are of sound construction and in good repair; 

(2) have adequate equipment, installed and maintained in good working order, for the movement of grain 

into, out of, and within the warehouse; 

(3) have adequate ventilation, installed and maintained in good working order, for the proper storage and 

preservation of grain quality; 

(4) have adequate lighting; 

(5) are free from materials and substances that may adversely affect the quality of stored grain; 

(6) have a safe and clean work environment; and 

(7) ensure adequate security and protection of stored or handled grain from tampering or adulteration. 

B. allow for the accurate and efficient inspection, sampling, classifying, and weighing of the grain in store; 

and 

C. are under the Warehouse Operator’s control, extending to the immediate surrounding property upon which 

the Warehouse Operator’s facility is located.

3. have personnel or contractors available who: 

A. have knowledge and experience in inspecting, sampling, classifying, and/or weighing of grain; 

B. are licensed under the USWA to inspect, sample, classify, and/or weigh grain; 

C. have integrity, good judgment, and proven performance; and 

D. are sufficiently knowledgeable to assist AMS warehouse examiners with inspections and examinations. 
WA-402(07-31-18) Page 7 of 41

Section C - Financials 

1. Financial Requirements 

The Warehouse Operator agrees: 

A. to have and maintain (each of the following): 

(1) total allowable net worth of at least the amount obtained by multiplying $0.25 by the warehouse 

capacity in bushels; however, no person may be licensed or remain licensed as a Warehouse Operator 

unless that person has an allowable net worth of at least $200,000. (Any deficiency in allowable net 

worth above the $200,000 minimum may be supplied by an increase in the amount of the financial 

assurance); and 

(2) total allowable current assets equal to or exceeding total current liabilities or evidence acceptable to 

AMS that funds will be and will remain available to meet current obligations. 

B. to have adequate insurance covering all depreciable fixed assets and inventory claimed on their financial 

statement; and 

C. that, if operating multiple warehouses under one or more licenses, the maximum capacity of all storage 

space under the licensed warehouses, as determined by AMS, will be the capacity considered in 

determining whether the Warehouse Operator meets the net worth requirements. 

2. Financial Reporting 

The Warehouse Operator agrees: 

A. to provide annually to AMS, within 90 calendar days of the fiscal year end, or more frequently if 

required, current financial statements from the Warehouse Operator’s records prepared according to 

generally accepted accounting principles. 

B. that the required financial statements will include, but not be limited to (each of the following): 

(1) a balance sheet; 

(2) a statement of income (profit and loss); 

(3) a statement of retained earnings; 

(4) a statement of cash flows; and 

(5) notes to the financial statement. 

C. that authorized representatives for the Warehouse Operator will certify under penalty of perjury that the 

statements, as prepared, accurately reflect the financial condition of the licensed warehouse as of the date 

designated, and fairly represent the results of operations for the period designated. 

D. to have the required financial statements reviewed or audited by a certified public accountant or an 

independent public accountant, as approved by AMS. 

E. that reviews and audits by independent certified public accountants and independent public accountants are 

to be made in accordance with standards established by the American Institute of Certified Public 

Accountants. The accountant's certification, assurances, opinion, comments, and notes on this statement 

must be furnished, along with the financial statements. The notes of the financial statements are to include 

a detailed list of company-owned inventories, including unpaid grain. 
WA-402(07-31-18) Page 8 of 41

F. that reviews and audits without a physical measurement of inventory and its resultant qualified opinion may 

subject the Warehouse Operator to an inventory determination by USDA personnel and the assessment of 

fees to compensate USDA. 

G. that if any financial statement is restated, recalculated, or republished, the Warehouse Operator shall notify 

AMS immediately. 

3. Accepting Other Financial Statements 

The Warehouse Operator may meet the financial and reporting requirements of Section C, subsections 1 and 2, 

subject to AMS approval, with (any of the following): 

A. consolidated financial statements of a parent company that separately identifies the financial position of the 

Warehouse Operator as a subsidiary; or

B. guaranty agreement from a parent company submitted on behalf of a wholly-owned subsidiary which meets 

the requirements of subsections 1 and 2 of Section C; or

C. guaranty agreement accompanied by an audit-level financial statement meeting the requirements of 

subsections 1 and 2 of Section C of an entity with substantial interest in the Warehouse Operator. 

4. Special Cases - Assets 

A. subject to such terms and conditions as AMS may prescribe and for the purposes of determining allowable 

net assets, appraisals of the value of fixed assets in excess of the book value claimed in the financial 

statement submitted by the Warehouse Operator to conform to the requirements may be allowed if each of 

the following conditions are met: 

(1) the assessment is prepared by independent certified appraisers and according to established appraisal 

criteria acceptable to AMS; and 

(2) the assets are fully insured against casualty loss. The Warehouse Operator must provide written notice 

to AMS not less than 30 calendar days before the insurer(s) intends to cancel insurance coverage. 

B. all grain purchased in-store or at another warehouse location can only be shown as an asset to the limit of 

the verifiable equity paid, adjusted for current market value, as determined by AMS. 

Section D - Financial Assurance 

1. Computation 

The Warehouse Operator agrees to furnish (each of the following): 

A. financial assurance computed at the rate of $0.20 per bushel for the first million bushels of USWA-licensed 

warehouse capacity, $0.15 per bushel for the second million bushels of grain capacity and $0.10 per bushel 

in excess of two million bushels of grain capacity, with a minimum of $50,000 and up to a maximum of

$500,000 for each State in which licenses are held; 

B. additional financial assurance, if necessary, as determined by AMS, by adding to the amount of financial 

assurance an amount equal to any deficiency in net worth in excess of the $200,000 minimum requirement; 

and 

C. additional financial assurance, if AMS finds that conditions exist which warrant requiring additional 

financial assurance. 
WA-402(07-31-18) Page 9 of 41

2. Acceptable Forms 

The Warehouse Operator may offer as financial assurance any of the following: 

A. a Warehouse Operator’s surety bond, or 

B. a deposit with AMS of U.S. bonds, U.S. Treasury notes or other public debt obligations of the United 

States or obligations that are unconditionally guaranteed as to both interest and principal by the United 

States, subject to each of the following restrictions: 

(1) the obligation deposited will not be considered a part of the Warehouse Operator's assets; 

(2) any deficiency in allowable net worth exceeding the $200,000 minimum may be offset by the 

Warehouse Operator furnishing an acceptable financial assurance for the difference. The deposit may 

be replaced or continued in the required amount from year-to-year; and 

(3) the deposit will not be released until one year after revocation of the license that it supports, or until 

after satisfaction of any claim against the deposit, whichever is later or approved by AMS; or

C. an irrevocable letter of credit issued to AMS, on a form approved by AMS, to which each of the 

following apply: 

(1) the letter of credit is issued for a term of not less than two (2) years, provided that: 

(a) the issuer of the letter of credit provides 120-day notification in the event the letter of credit will 

not be renewed; and 

(b) USDA shall provide written notice that it will draw upon the letter of credit in full ten (10) days 

prior to its cancellation date if replacement financial assurance is not provided. These funds will 

be held until such time as all obligations are settled or replacement is provided. 

(2) the letter of credit is issued by a commercial bank, payable to AMS by sight draft and insured by the 

Federal Deposit Insurance Corporation or by an institution in good standing regulated by the Farm 

Credit Administration; and 

(3) its supporting funds on deposit are not considered an asset of the company. 

D. participation in, and coverage by, a State indemnity or insurance fund established and maintained by a 

State, as approved by AMS, provided that: 

(1) the fund is backed by the full faith and credit of the State; 

(2) the fund guarantees depositors in the USWA licensed warehouse full indemnification for any breach of 

any of the Warehouse Operator’s obligations created under the terms of the USWA; 

(3) the Warehouse Operator files with AMS a yearly certification of their participation and coverage in 

the fund; 

(4) in the event of a deficiency in the Warehouse Operator’s net worth to cover the total net worth 

requirement under the USWA, the certification of participation and coverage may be used only to 

cover deficiencies in net worth above the minimum net worth requirement; and 

(5) the Warehouse Operator must, at all times, meet the minimum net worth requirement. 

E. other alternative instruments and forms of financial assurance approved by AMS. 
WA-402 (07-31-18) Page 10 of 41 

Section E - Duties of the Warehouse Operator 

1. In general 

The Warehouse Operator agrees, unless prevented from doing so by force majeure, to (each of the following): 

A. exercise at all times such care in regard to maintaining the standard of quality and quantity of grain in 

custody as a reasonably careful owner would exercise under the same circumstances and conditions, and to 

keep the grain from going out-of-condition; 

B. not differentiate among depositors or lawful owners regarding use of and access to services, except that 

available storage space may be allocated; 

C. provide all necessary assistance in the execution of inspections and examinations by authorized warehouse 

examiners; 

D. maintain, at all times, legal and operational control of all licensed storage space; 

E. apply for licensing all warehouse space or facilities controlled by the Warehouse Operator at a specific 

location, among which grain may be transferred without weighing, unless that space or those facilities are 

physically separated and specifically exempted from the license by AMS; 

F. apply for an amendment to their license when adding or deleting bins, locations or other space that alters 

the licensed storage capacity; 

G. post for public access at all locations, copies of certificates of licensing, current tariff and any special rules; 

H. report immediately the occurrence of a fire, disaster, or loss, and the extent of damage to AMS; 

I. ensure that all grain claimed as company-owned is paid for or applied to fully executed contracts within 30 

days of final delivery; and 

J. ensure that contracts involving the application of producer open-storage or credit-sale grain are executed 

by both parties within 30 days of final application of the grain against the contract and fully reflect the 

terms of settlement. 

2. Warehousing 

The Warehouse Operator agrees, unless prevented from doing so by force majeure, to (each of the following): 

A. accept for storage only storable grain; 

B. accept all storage and non-storage grain and, at the request of the depositor or lawful owner, deliver out 

(other than in the case of specially-binned grain) all storage and non-storage grain in accordance with the 

weight and grade of that grain as determined by a person duly licensed to inspect, sample, classify and/or 

weigh that grain. (Disputes are addressed in Section J - Grain Grading Appeals); 

C. accept and deliver out of storage grain in accordance with the factors determined as the result of an appeal 

of the original inspection results; 

D. ensure all grain accepted for storage is stored in the Warehouse Operator’s licensed warehouse space; 

E. issue a USWA Inspection and/or Weight Certificate for each individual conveyance (or for multiple 

railcars provided that each railcar is identified separately) that delivers grain received for storage or that is 

loaded out of the Warehouse Operator’s licensed warehouse space; 
WA-402 (07-31-18) Page 11 of 41 

F. deliver stored grain without unnecessary delay and in a commercially reasonable manner; 

G. not deliver infested or adulterated grain as defined under the United States Standards, 

USDA/AMS/FGIS, Food and Drug Administration (FDA), Environmental Protection Agency 

regulations, or other Federal laws or standards; 

H. not load or deliver grain in a conveyance that places the quality or quantity of the grain at risk; 

I. not redeliver, ship or remove any warehouse-receipted grain from licensed storage space based on written 

or oral orders from the current holder or other lawful person without the Warehouse Operator first being 

made the final holder of the EWR or having physical possession of the paper warehouse receipt or other 

document of release for such grain; 

J. promptly cancel warehouse receipts representing any grain prior to shipping or removing grain from 

licensed storage space; 

K. resolve any claim for noncompliance with the shipping of grain or any other dispute in a U.S. district court 

of competent jurisdiction or through mutually agreed-upon arbitration procedures. The arbitration 

procedures will be nondiscriminatory and provide equal access and protection relating to the shipping of 

grain; 

L. maintain sufficient inventory, at all times, of grain in licensed storage space that reflects the quality and 

quantity represented by outstanding storage obligations (including warehouse-receipted and unreceipted 

grain). In the event the quality or quantity of stored grain becomes out of balance with quality or quantity 

represented by outstanding storage obligations, the Warehouse Operator is to effect the necessary 

corrective actions to regain a balanced position for quality and quantity in a timely manner; 

M. attach, upon acceptance for storage of any lot of bagged grain, a durable tag or stencil in a manner that 

readily makes possible the identification of the lot at all times. Such tags or stencil must show: 

(1) lot number; 

(2) warehouse receipt number issued for such grain, if warehouse receipt is requested; 

(3) number of bags in the lot, if applicable; 

(4) kind and class of grain; 

(5) quality factors, if determined; 

(6) gross weight of the screened grain when it entered storage, and 

(7) date the grain entered storage. 

Note: The tags on bagged grain must be visible and readily accessible, enabling an accurate count. 

N. assure that the physical warehouse inventory record for each kind/class of grain equals the total 

outstanding warehouse receipt and storage liability obligation records (including company-owned) for the 

close of each business day and before the start of the next business day; 

O. not issue a warehouse receipt for any grain product or co-product which would meet the definition of

“screenings”; and 

P. exercise due care with respect to non-storage grain while in the Warehouse Operator’s custody. 
WA-402 (07-31-18) Page 12 of 41 

3. Facilities 

The Warehouse Operator agrees, unless prevented from doing so by force majeure, to (each of the following): 

A. maintain the warehouse(s) in sound physical condition consistent with good warehousing practices; 

B. keep the warehouse and the property on which it is located reasonably clean and safe at all times; and 

C. securely affix clearly discernible numbers to identify bulk grain bins and other authorized storage licensed 

under the USWA for storing grain. The series of designated numbers must be pre-approved by AMS. Bulk 

grain bins must be numbered so as to be easily identified at the openings on top and also on or near the 

outlet valves underneath. Other authorized storage must be numbered in such a manner that clearly shows 

the space covered by each number. 

4. Facility Security 

The Warehouse Operator agrees to (each of the following): 

A. conduct a facility risk assessment and establish written security procedures that address grain handled and 

stored under this Agreement with regard to (each of the following): 

(1) general security of the USWA-licensed physical structures and property on which the licensed 

warehouse is located; 

(2) shipping and receiving procedures to ensure that grain is not subject to tampering; 

(3) action to be taken in the event of a national emergency; and 

(4) contact information for local emergency responders and law enforcement authorities. 

B. have a written facility security plan that includes measures which address the vulnerabilities identified 

during the risk assessment and that protects the safety and purity of the grain handled and stored under the 

license. 

5. Fair Treatment 

A. The Warehouse Operator agrees to deal in a fair and reasonable manner with persons storing or seeking to 

store grain if each of the following conditions are met: 

(1) the grain is of the kind, type and quality customarily stored or handled in the geographic area;

(2) the grain has been tendered to the warehouse in a suitable condition for storage; and 

(3) the grain is tendered in a manner consistent with the ordinary and usual course of the Warehouse 

Operator’s business. 

B. The Warehouse Operator may enter into agreements with depositors or lawful owners to allocate available 

warehouse storage space. 

6. Insurance 

The Warehouse Operator agrees to each of the following requirements: 

(1) secure, in their own name, insurance on stored grain against loss or damage by fire, lightning, 

windstorm, cyclone, tornado, or inherent explosion and other special peril risks under forms of policies 

which automatically attach for the full replacement value of stored grain, as soon as such grain is
WA-402 (07-31-18) Page 13 of 41 

placed in their legal custody, and continue such insurance in effect so long as the grain remains in their 

legal custody. Arrangements between the Warehouse Operator and insurers concerning 

indemnification of waivers of deductibles are acceptable as long as an insurer covers any loss fully or 

the Warehouse Operator indemnifies deductibles with a letter of credit, additional bonding or other 

financial assurance in favor of USDA. AMS may accept consolidated blanket insurance policies of 

parent companies that separately identify the insurance coverage of the Warehouse Operator as a 

subsidiary and include the full replacement value of stored grain; 

(2) keep a general insurance account showing the policy number, issuing company, amount binding, 

exclusions, limits of liability, and expiration dates of all insurance policies and in each instance show 

the property covered by such policies. These insurance policies may be issued by one or more 

insurance companies; 

(3) submit such reports to underwriters as may be required under the terms of such policies; 

(4) submit copies of such reports to AMS, as required; 

(5) include in the rules and schedule of charges (tariff) the conditions under which stored grain will be 

insured against loss or damage by fire, lightning, windstorm, cyclone, tornado, or inherent explosion 

and other special peril risks; and 

(6) provide AMS with written notice not less than 30 calendar days before the insurer(s) intends to 

cancel property and/or stock (inventory) coverage. 

7. Business Hours 

The Warehouse Operator agrees to (each of the following): 

A. be open for the purpose of receiving grain for storage and delivering grain out of storage and for settlement 

purposes each business day for a period of not less than six hours between the hours of 8 a.m. and 6 p.m., 

except as provided in C;

B. post business hours at a conspicuous, publicly accessible location at the licensed warehouse, including the 

grain receiving area; and 

C. post notice in the event that the warehouse is not open during the hours specified in A, the estimated period 

during which the warehouse is to be closed and the contact information, including address and telephone 

number of the Warehouse Operator. 

8. System of Records 

The Warehouse Operator agrees to (each of the following): 

A. develop and maintain a system of records, approved by AMS, on site, unless otherwise provided for in 

this Agreement’s Addenda. These records shall include, but are not limited to, an accurate and concise 

Master Daily Position Record (DPR) by each kind and class of grain and supported by supplemental DPRs 

based on source documents that identify the total quantity and quality of each kind, class, subclass, and 

grade, special grade, specialty traits or use, of grain stored and handled in USWA-licensed space showing 

each of the following categories on a daily basis: 

(1) total grain (as shown in the record of physical inventory) received into the warehouse; 

(2) total grain loaded out of the warehouse; 

(3) total adjustments to grain in the warehouse; 
WA-402 (07-31-18) Page 14 of 41 

(4) total grain remaining in the warehouse at the close of each business day; 

(5) total grain obligations transferred or forwarded to another warehouse; 

(6) total grain represented by negotiable and non-negotiable warehouse receipts issued and canceled, 

and the remaining outstanding balance; 

(7) total increase, decrease, and outstanding storage grain obligations, including grain bank and open 

storage grain belonging to others; 

(8) total unpaid (unsettled) grain owned by the Warehouse Operator for which warehouse receipts have 

not been issued; 

(9) total paid and unpaid (unsettled) grain owned by the Warehouse Operator for which warehouse 

receipts have not been issued; and 

(10) total grain obligations. 

Note: Before proceeding to the next day's DPR, the Warehouse Operator is to accurately update the current 

day's DPR with all applicable changes that occurred that date by closing and preventing subsequent 

changes to those data. Any corrections to that data must be made and shown as an adjustment on the date 

that the error is found and corrected. 

B. maintain a record of corrections and adjustments made to the DPR. This record may be included as 

footnotes in the DPR or a separate record may be maintained. The footnotes shall reference the date, the 

document used to make the adjustment, the nature of the adjustment and the reason for the adjustment. 

Note: Upward adjustments to the DPR are not permitted, except when verified by emptying the warehouse 

or a complete verifiable weigh-up, or as authorized by AMS. Under normal circumstances and conditions, 

grain does not increase in volume while in storage. Excesses of measured inventory over obligations are to 

be explained and not arbitrarily adjusted. 

C. maintain records for each depositor showing the kind, class (and the subclass white club wheat), grade, 

specialty (such as waxy corn), and quantity of grain deposited or redelivered; 

D. maintain records of direct-shipment and transferred grain. In the case of direct-shipment grain, such 

records shall include the inspection and/or weight certificates from the receiving warehouse(s). If directshipment grain is being substituted for storage grain, the storage grain must be shown on the DPR as a 

storage obligation. If direct-shipment grain is being substituted as sold or contracted grain, such grain must 

be shown in the Warehouse Operator’s records as a monetary obligation. If the grain is transferred or 

forwarded and the Warehouse Operator is maintaining ownership, the grain shall be shown on the DPR as a 

storage obligation and shall comply with the requirements for transferring of grain; 

E. maintain a detailed accounting system of all money received and disbursed; 

F. maintain records accurately and concisely reflecting daily business activity, including weekend activity; 

G. retain these records for a period of 6 years after December 31 of the year in which the records were 

created. A longer retention period may be necessary for the purposes of any litigation which the 

Warehouse Operator knows to be pending or as may be required by AMS in particular cases to carry out 

the purposes of the USWA; and 

H. maintain similar records and information for any non-storage grain handled through the warehouse. 

Records required with respect to non-storage grain must be retained, as a part of the records of the 

warehouse, for a period of 6 years after December 31 of the year in which the lot of non-storage grain is 

delivered from the warehouse. 
WA-402 (07-31-18) Page 15 of 41 

9. Reports 

The Warehouse Operator agrees to (each of the following): 

A. make reports concerning the condition, contents, operation, and business of the warehouse available upon 

request by AMS on forms prescribed and furnished for that purpose by AMS; and 

B. keep on file, either electronically or on paper, an exact copy of each report submitted as a part of the 

records of the warehouse for a period of 6 years after December 31 of the year in which the document was 

created or longer, if required by AMS. 

10. Records 

The Warehouse Operator agrees to (each of the following): 

A. back up and maintain an off-site copy of electronic records daily; 

B. provide, unless an alternative is approved by AMS, at least a fireproof safe, a fireproof vault, or a fireresistant compartment in which to keep, when not in actual use, all records, books, and papers pertaining to 

the licensed warehouse, including current warehouse receipt books, and copies of issued and canceled 

warehouse receipts; 

C. retain each canceled warehouse receipt for a period of 6 years after December 31 of the year in which the 

warehouse receipt is canceled. A longer retention period may be necessary for the purposes of any 

litigation which the Warehouse Operator knows to be pending or as may be required by AMS in particular 

cases to carry out the purposes of the USWA; 

D. retain a copy of each inspection and weight certificate for a period of 6 years after December 31 of the 

year in which the document was created; and 

E. arrange for purposes of an audit, canceled paper or electronic warehouse receipts, contracts, and inspection 

and/or weight certificates in a sequential numerical order or as otherwise may be directed by AMS. 

11. Public Tariff and Schedule of Charges 

The Warehouse Operator must (each of the following): 

A. not impose unreasonable or exorbitant charges for services rendered; 

B. file with AMS, a copy of the public tariff rules and schedule of charges to be assessed depositors before a 

license to operate a warehouse is granted under the USWA; 

C. post conspicuously at a publicly accessible location where the depositor may access it at the warehouse, 

including the grain receiving area, a copy of the public tariff, including current rules and schedule of 

charges; 

D. file with AMS a new public tariff rule statement or schedule of charges before implementing any change 

to such rules or schedule of charges. No increase in charges or rates shown in such schedule will apply to 

grain in storage at the time the changes become effective for a period of 1 year from the date such grain 

was deposited; and 

E. include in the rules and schedule of charges the conditions under which the grain will be insured against 

loss or damage by fire, lightning, windstorm, cyclone, tornado, or inherent explosion and other special peril 

risks. 
WA-402 (07-31-18) Page 16 of 41 

The Warehouse Operator may (any of the following): 

(1) demand payment of all accrued charges at the close of each crop year or other mutually agreed-upon 

date. If, upon demand, the owner of the grain refuses to pay such charges at the end of a season, action 

may be taken to enforce collection of such charges as permitted by the laws of the State in which the 

warehouse is located; or

(2) demand payment of all accrued charges associated with the storage of grain to satisfy the Warehouse 

Operator’s lien prior to delivering such grain to the depositor; or 

(3) enter into mutually agreed upon special agreements with depositors that may include service rates and 

rules differing from the public tariff rules and schedule of charges. Such special arrangements shall be 

submitted by the Warehouse Operator to AMS prior to execution, and are subject to approval by AMS. 

12. Grades and Grain Quality Inspections 

The Warehouse Operator agrees to (each of the following): 

A. equip the warehouse with grading and quality-evaluation equipment necessary to determine the kind, 

grade, and quality of each class, subclass, and specialty grain received, handled, or accepted for storage; 

B. ensure that all grading and quality-evaluation equipment is inspected and certified annually by an 

applicable regulatory or independent authority. Testing or quality-evaluation equipment whose 

performance is rejected and/or not certified shall not thereafter be used to ascertain the grade or quality of 

grain for the purposes of the USWA license, until such rejection is withdrawn by the applicable regulatory 

or independent authority; and 

C. ensure that all samples submitted to FGIS or an independent agency are representative of the grain 

delivered. 

13. Scales and Weighing 

The Warehouse Operator agrees to (each of the following): 

A. equip the warehouse with scales appropriate for the kind of grain being weighed, and have them arranged 

in a manner that all grain, whether for storage or non-storage purposes, can be weighed in and out of the 

warehouse; and 

B. have scales inspected and certified annually by an applicable regulatory or independent authority. Scales 

which have been tested and their performance rejected and not certified shall not thereafter be used in 

ascertaining the weight of grain for the purposes of the USWA license, until such rejection is withdrawn by 

the applicable regulatory or independent authority. 

14. Prompt Delivery 

In the absence of force majeure or a lawful excuse, the Warehouse Operator shall, as commercially reasonable 

and without unnecessary delay, deliver the grain stored or handled in the warehouse on a demand made by 

(either of the following): 

A. the holder of the warehouse receipt; or

B. the lawful owner of the grain, if no warehouse receipt has been issued. 
WA-402 (07-31-18) Page 17 of 41 

15. Identity-Preserved and Conjoint-Storage Grain 

A. The Warehouse Operator may elect not to accept and store identity-preserved or conjoint-storage grain. 

B. If electing to accept and store such grain in bagged or bulk form, the Warehouse Operator agrees to (each

of the following): 

(1) clearly identify and mark each bag, container, bin, or tank containing such grain; 

(2) maintain records that clearly show the depositor of such grain, the quality characteristics and internal 

storage location of each lot deposited and stored in the warehouse; 

(3) enter into, at the time of deposit, a special storage agreement with the depositor defining the terms and 

conditions of storage, including the amount of shrinkage or quality deterioration to be allowed while 

such grain is in storage; 

(4) maintain the quality and quantity of such grain as stated within the terms of the applicable public tariff 

or special storage agreement entered into with the depositor(s); and 

(5) follow good warehouse storage practices. 

C. For identity-preserved grain: 

(1) Except as may be required by law or the regulations in this part, the Warehouse Operator shall not 

remove or transfer any such grain for storage from the licensed warehouse or a part thereof to another 

bin without first notifying the depositor. 

(2) The Warehouse Operator must deliver to the depositor or lawful owner the actual grain deposited and 

stored in the warehouse. The conditions for delivery are (each of the following): 

(a) proper presentation of title for any identity-preserved grain; and 

(b) payment of all accrued charges associated with the storage and handling of such grain, if requested 

by the Warehouse Operator. 

D. For conjoint-storage grain: 

(1) Except as may be required by law or the regulations in this part, the Warehouse Operator shall not

remove or transfer any grain for storage from the licensed warehouse or a part thereof to another bin 

without first notifying the depositor(s). 

(2) The Warehouse Operator shall deliver to the depositor(s) or lawful owner(s), upon demand, the actual 

commingled grain deposited and stored jointly in the warehouse. The conditions for delivery are (each

of the following): 

(a) proper presentation of title for any conjoint-stored grain; and 

(b) payment of all accrued charges associated with the storage and handling of such grain if requested 

by the Warehouse Operator. 

16. Storage Obligations 

The Warehouse Operator, while authorized to commingle grain in store, is liable for the care and redelivery of 

grain stored in licensed space to each depositor or lawful owner to the same extent and under the same 
WA-402 (07-31-18) Page 18 of 41 

circumstances as if the grain was separately stored. The Warehouse Operator, as a bailee for hire, is free to 

store grain in any manner that enables it to be delivered in a condition that meets or exceeds the quality and 

quantity represented on the warehouse receipt or the original inspection and/or weight certificate. 

17. Containerized Grain Storage 

The Warehouse Operator agrees to keep binned grain stored in an orderly manner to permit easy access to all 

lots and to facilitate inspecting, sampling, counting, and identification of each lot. 

18. Delivery of Commingled Grain 

The Warehouse Operator must deliver to the depositor or lawful owner, upon demand, grain of the kind, 

quantity, numerical grade, and class as obligated or better, as determined by a licensed inspector and/or weigher 

or an official inspection certificate issued by an FGIS official service provider. The conditions for delivery are 

(each of the following): 

A. proper presentation of documents of title; and 

B. payment of all accrued charges associated with the storage of grain, if requested by the Warehouse 

Operator. 

19. Loading Out Without Weighing 

The Warehouse Operator may load out without weighing (either of the following): 

A. identity-preserved or conjoint-storage grain if the owner has agreed to assume all shortages as part of 

the special storage agreement; or

B. commingled bulk grain, at the request of the owner. An interim weight document must be issued by the 

shipping Warehouse Operator, clearly indicating the weight as an estimate and must be posted to the DPR 

as activity occurs. Destination weights are to be obtained and adjustments posted to the DPR as soon as 

available. 

20. Out-of-Condition and Damaged Grain 

A. The Warehouse Operator may refuse to accept grain offered for storage if its condition is such that it will 

adversely affect the condition of grain customarily stored in the warehouse. 

B. When grain is discovered to be going out-of-condition and the Warehouse Operator is unable to condition 

the grain or stop the deterioration, the Warehouse Operator agrees to (each of the following): 

(1) immediately notify the owner(s) or depositor(s) and AMS; 

Such notification shall include: 

(a) the warehouse location in which the grain is stored; 

(b) the quantity, kind, class, and grade of the grain at the time notification occurred; 

(c) the actual condition of the grain, as nearly as can be ascertained; 

(d) the reason for the current condition, if known; 

(e) the warehouse receipt information, if a warehouse receipt has been issued; and 
WA-402 (07-31-18) Page 19 of 41 

(f) a statement that the grain will be delivered upon the presentation of the warehouse receipt and 

payment of applicable charges. 

(2) follow instructions received from AMS; 

(3) maintain as warehouse records copies of all notices and correspondence associated with the out-ofcondition grain; and 

(4) submit to and reimburse the cost of a verification examination, if one is necessary. 

21. Inspections and Examinations of Warehouse 

The Warehouse Operator agrees to (each of the following): 

A. permit authorized individuals to enter and inspect or examine any licensed warehouse on any business day 

during normal or posted business hours; 

B. provide safe access to authorized individuals to the extent reasonable to determine the quantity and quality 

of grain stored in the licensed warehouse; 

C. provide authorized individuals with notice of any safety or other company policies pertaining to the 

physical facility and grounds subject to examination or inspection; 

D. provide authorized individuals access to such books, records, papers, accounts, and their contents pursuant 

to the examination of a licensed warehouse; 

E. furnish authorized individuals with the assistance necessary to conduct an inspection or examination; 

F. provide safe and functioning equipment (e.g. ladders, catwalks, lifts, or elevators) required to conduct a 

warehouse examination. Further, the Warehouse Operator shall provide advance notice to AMS of any 

special requirements or equipment required to perform an examination at the licensed warehouse. An 

examination will be stopped and an exception report prepared for removal of the facility from licensed 

space if a warehouse examination cannot be conducted or completed because of unsafe equipment; 

G. provide notice, at the time of the examination, of any fumigation of bins in progress or where the fumigant 

is currently active, and to provide conspicuous written notification affixed to the fumigated storage 

structure of the date and type of fumigant used; and 

H. promptly respond to violations noted on the examination. The response must include corrective action on 

items completed and a corrective action plan on items to be completed, including a timetable for 

completion. 

22. Transfer of Grain 

A. The Warehouse Operator may, under certain circumstances, transfer or forward grain by physical 

movement or other AMS-approved method to a receiving warehouse. For the purposes of this part, a 

receiving warehouse is any of the following: 

(1) an active USWA-licensed grain warehouse; 

(2) a public grain warehouse currently licensed by a State licensing authority that has financial, bonding, 

and examination requirements for the benefit of all depositors; or

(3) a public grain warehouse holding an approved Commodity Credit Corporation (CCC) storage 

agreement. 
WA-402 (07-31-18) Page 20 of 41 

B. The transferring Warehouse Operator agrees to (each of the following): 

(1) provide written notification immediately to AMS by FAX or e-mail upon becoming aware that the 

grain obligations at a specific storing warehouse exceed the licensed or insured capacity of that 

warehouse, as well as the name and location of the receiving warehouse; and 

(2) if physically moving or transferring grain to a receiving warehouse (each of the following): 

(a) ensure that the public tariff’s rules and schedule of charges include language that allows the 

Warehouse Operator to transfer grain according to conditions prescribed by AMS;

(b) obtain written permission from AMS, by FAX or e-mail, in advance of movement or approved 

transfer of warehouse-receipted grain; 

(c) obtain permission in advance from CCC if grain to be transferred is owned by CCC; 

(d) obtain from the receiving warehouse a non-negotiable warehouse receipt or certified deposit 

affidavit or notarized deposit letter stating “Held in Trust for Depositors of name of transferring

warehouse” as legal depositor for all transferred grain;

(e) not accept transferred grain from another warehouse while grain of the same kind and class is in a 

transferred position; 

(f) retain or increase financial assurance encompassing the warehouse capacity and the transferred 

grain, as specified in Section C – Financials, subsection 1 A of this Agreement; 

(g) post transferred grain positions to the DPR, as specified in Section E – Duties of the Warehouse 

Operator, subsection 8 – System of Records; 

(h) retain a storage obligation to the depositor or lawful owner for grain originally deposited in the 

warehouse and, unless otherwise specified in Item (i) below, be prepared to redeliver the grain 

deposited upon demand of the depositor or lawful owner at the place where the grain was first 

deposited for storage; and 

(i) provide an opportunity for the depositor or lawful owner to make final settlement and take 

delivery of the storage obligation at the place where the grain was first deposited for storage 

unless, with the consent of both the transferring (shipping) Warehouse Operator and the receiving 

Warehouse Operator, the depositor or lawful owner elects to take delivery at the warehouse to 

which the grain was transferred. 

C. Non-Negotiable warehouse receipts received under subsection 22 Transfer of Grain, B. (2) (d) above: 

(1) must have conspicuously printed or stamped across the face of the paper receipt the words “Not 

Negotiable” or be issued as a “Non-Negotiable” electronic warehouse receipt; 

(2) are not valid for collateral purposes; 

(3) are retained by the transferring (shipping) Warehouse Operator to be presented for use by AMS in 

lieu of an on-site inventory of the receiving warehouse; and 

(4) shall be subject to the general requirements for warehouse receipts in their recording and retention. 

D. For grain transferred to a warehouse in a State that does not allow or recognize the issuance of nonnegotiable warehouse receipts, obtain from the receiving Warehouse Operator a certified deposit affidavit 

or notarized deposit letter specifying the kind, class, numerical grade, specialty, and quantity of the grain 

received. 
WA-402 (07-31-18) Page 21 of 41 

E. The transferring (shipping) Warehouse Operator shall execute a legal binding operational agreement with 

the receiving Warehouse Operator that specifies that the receiving Warehouse Operator will (each of the 

following): 

(1) not exceed the licensed or approved capacity of the warehouse by accepting the transfer; 

(2) not further move, transfer or in any way offset the grain transferred to it to another warehouse and 

retain a storage obligation to the depositors of the transferring (shipping) Warehouse Operator; 

(3) fully insure the transferred grain; and 

(4) promptly issue a non-negotiable warehouse receipt or certified deposit affidavit or notarized deposit 

letter for the transferred grain stating on the document that such grain is “Held in Trust for Depositors 

of the (name) transferring warehouse,” as the legal depositor and return the warehouse receipt or 

certified deposit affidavit or notarized deposit letter promptly to the transferring (shipping) Warehouse 

Operator.

F. The grain covered by non-negotiable warehouse receipts, certified deposit affidavits, and notarized deposit 

letters shall be held in trust solely for the benefit of the shipping warehouse and its depositors or lawful 

owners whose grain was transferred individually or collectively and for which they retain title. 

Section F - Warehouse Receipts 

1. General 

A. Issuance - The Warehouse Operator agrees to (each of the following): 

(1) issue a warehouse receipt for any grain received or stored in a warehouse if requested by a depositor or 

lawful owner; 

(2) maintain a sufficient quantity and quality of grain as represented on the warehouse receipt(s); 

(3) list only the Warehouse Operator as depositor if issuing collateral warehouse receipts; and 

(a) ensure a sufficient quantity and quality of grain is owned by the Warehouse Operator to cover 

the obligation at the time of issuance and for the duration the collateral warehouse receipt is 

outstanding; 

(b) endorse warehouse receipts to the financial institution or holder receiving the warehouse receipt; 

(c) ensure that warehouse receipts are endorsed and dated by the financial institution or holder 

when returning the warehouse receipt (transferring title) to the Warehouse Operator, 

(endorsements and date required); and 

(d) the Warehouse Operator and the financial institution or holder must have legal documentation 

clearly defining the terms and conditions for the issuance and acceptance of the collateral 

warehouse receipts. 

(4) retain a copy of the weight certificate, inspection certificate, or inspection and weight certificate 

representing the grain prior to issuing any warehouse receipt to a depositor under the USWA. The 

Warehouse Operator’s records must identify the certificate(s) used as the basis for issuing the 

warehouse receipt and be retained for a period of 6 years after December 31 of the year in which 

issued. Certificates filed in the office of an independent inspection or weighing agency, with a Board 

of Trade, or a U. S. Registrar must also meet this requirement; 
WA-402 (07-31-18) Page 22 of 41 

(5) replace lost or destroyed warehouse receipts in accordance with 7 CFR Part 735 and Section F - 

Warehouse Receipts, subsection 2 E of this agreement; 

(6) not issue a warehouse receipt when another warehouse receipt is outstanding that represents the same 

specific identity-preserved, conjoint-storage, or commingled lot of grain; 

(7) not issue more than one warehouse receipt with the same warehouse receipt number; 

(8) state within the written or printed terms of non-negotiable warehouse receipts that such a warehouse 

receipt is not negotiable; and 

(9) issue warehouse receipts consecutively within the assigned order of warehouse receipts as determined 

by AMS. 

B. Persons Authorized to Sign Warehouse Receipts 

The Warehouse Operator must (each of the following): 

(1) file with AMS the name and genuine, facsimile, digital, or electronic signature of the person(s) 

authorized to sign warehouse receipts on behalf of the Warehouse Operator; 

(2) promptly notify AMS of any changes or additions to the names of persons authorized to sign 

warehouse receipts on behalf of the Warehouse Operator, and file the genuine, facsimile, digital, or 

electronic signature(s) of such person(s); 

(3) be bound by the signatures of persons authorized to sign warehouse receipts, the same as if the 

Warehouse Operator personally signed the warehouse receipt; and 

(4) agree and verify that all filed signatures legally bind the Warehouse Operator. 

C. Return of Warehouse Receipts Prior to Delivery 

The Warehouse Operator agrees to deliver grain (under each of the following situations): 

(1) for which they have issued a negotiable warehouse receipt only after the warehouse receipt has been 

returned to the Warehouse Operator and canceled; 

(2) for which they have issued a non-negotiable warehouse receipt only after the warehouse receipt has 

been returned to the Warehouse Operator and canceled or, alternatively, the Warehouse Operator has 

obtained from the holder or authorized agent a written order to deliver the grain. Under this alternative 

method, a Warehouse Operator may deliver up to ninety percent (90%) of the quantity represented by 

the warehouse receipt. The warehouse receipt must be surrendered before the final ten percent (10%) 

of the quantity can be delivered. 

D. Balance Warehouse Receipts 

The Warehouse Operator, upon request of the holder, may issue a warehouse receipt for previously 

warehouse-receipted grain for which the original warehouse receipt has been canceled. The warehouse 

receipt issued for the remaining balance must reference the number and issuance date of the original 

warehouse receipt. 

2. Paper Warehouse Receipts 

A. Content 

(1) Every paper warehouse receipt, whether negotiable or non-negotiable, issued for grain stored in a 
WA-402 (07-31-18) Page 23 of 41 

USWA warehouse, in addition to complying with the requirements of Section 11 of the USWA and 7 

CFR Part 735, Subpart D, must embody within its written or printed terms (each of the following): 

(a) the name of the Warehouse Operator and the designation, if any, of the warehouse facility; 

(b) the location of the warehouse in which the grain is stored; 

(c) the Warehouse Operator’s license number; 

(d) the CCC storage agreement code number, if applicable; 

(e) the issuance date of the warehouse receipt; 

(f) the consecutive number of the warehouse receipt; 

(g) the name of the depositor or lawful owner; 

(h) a statement as to whether the grain received is to be delivered to the holder, to a specified person, 

or their order; 

(i) prepaid warehouse charges, if applicable; 

(j) a description of the grain received, including the quantity, kind, class, grade, and the standard or 

description in accordance with which such classification has been made (each of these apply): 

(i) The grade stated in a warehouse receipt must be the weighted average of the numeric grades as 

determined by the inspector and as indicated on the applicable inspection certificate(s) or as 

determined by an FGIS official service provider; however, if an appeal of the grade 

determination has been requested and obtained, the grade stated on such warehouse receipt 

shall be the final appeal grade; and 

(ii) Except in the case of identity-preserved or conjoint-storage grain, if, at the request of the 

depositor, the Warehouse Operator issues a warehouse receipt omitting the statement of 

grade, such warehouse receipt shall have clearly and conspicuously stamped or written on the 

face thereof, or included as part of the paper warehouse receipt, the following statement: “Not 

graded at the request of the depositor.”

(k) dockage and foreign material, if applicable; 

(l) a statement that the warehouse receipt is issued subject to the USWA, the regulations, and this 

Agreement and its rules; 

(m) a statement of the amount of advances, if made, and of liabilities incurred regarding warehouse 

storage, handling, and other charges claimed by the Warehouse Operator; however, if the precise 

amount of such advances made or of such liabilities incurred is unknown to the Warehouse 

Operator (or to the agent who issues it) at the time the warehouse receipt is issued, it is sufficient 

to include a statement that advances have been made or liabilities incurred, as well as their 

purpose; 

(n) if issued showing the Warehouse Operator as owner, either solely or jointly in common with 

others, the fact of such ownership; 

(o) such other terms and conditions within the limitations of the USWA and this Agreement, as may 

be required by the Secretary or AMS; 
WA-402 (07-31-18) Page 24 of 41 

(p) a statement of the Warehouse Operator’s business organization type (e.g. sole proprietorship, 

corporation, partnership, limited liability company) and the name of the State whose laws govern 

that organization (e.g. “a Texas corporation.”);

(q) in the event the relationship existing between the Warehouse Operator and any depositor is not 

that of a strictly disinterested custodianship, a statement setting forth the actual relationship; 

(r) a statement, conspicuously placed, that the grain is insured by the Warehouse Operator against 

loss or damage by fire, lightning, windstorm, cyclone, tornado, inherent explosion or other special 

peril risks; 

(s) net weight of the grain; 

(t) if the grain represented by the warehouse receipt is identity-preserved or conjoint-stored product, 

the words “identity-preserved” or “conjoint storage” and the specific bin(s) or warehouse location 

of such grain; 

(u) the words “Negotiable” or “Non-Negotiable,” as appropriate to the nature of the warehouse 

receipt, clearly and conspicuously printed thereon. Every negotiable warehouse receipt issued 

must, in addition to conforming to the requirements of this subpart, embody within its written or 

printed terms, a form of endorsement that may be used by the depositor or authorized agent, for 

showing the current ownership of the grain and applicable charges, mortgages or other 

encumbrances on the grain represented by the warehouse receipt;

(v) the signature of the Warehouse Operator, which may be made by the authorized agent; and 

(w) other information as may be required by AMS. 

(2) If the Warehouse Operator issues a warehouse receipt under the USWA omitting any information not 

required to be stated, for which a blank space is provided in the form of the warehouse receipt, a line 

shall be drawn through such space to show that such omission has been made purposely or “ILB”

entered in the blank data field to indicate it has been “intentionally left blank.”

(3) A warehouse receipt may contain additional information, provided it does not contradict, mislead, 

conceal, or interfere with any required information or printed or written terms. 

(4) Warehouse receipts must not be altered or defaced, except as authorized by AMS. 

B. Copies of Paper Warehouse Receipts 

The Warehouse Operator agrees to maintain at least one file copy of each warehouse receipt and clearly 

and conspicuously print or stamp on the face of such warehouse receipt the words “Copy-Not Negotiable”

on its surface. 

C. Printing of Negotiable and Non-Negotiable Paper Warehouse Receipts 

The Warehouse Operator agrees to issue only paper warehouse receipts that are printed (each of the 

following apply): 

(1) in a form prescribed by AMS; 

(2) by a printer with which AMS has an agreement and bond for such printing; and 

(3) on distinctive paper tinted in a manner specified in AMS’s agreement with the printer. 
WA-402 (07-31-18) Page 25 of 41 

D. Details on the Printing of Paper Warehouse Receipts 

The Warehouse Operator agrees to (each of the following apply): 

(1) order warehouse receipts on a form provided or by a method authorized by AMS; 

(2) proofread each order and review the warehouse receipts received from the printer for errors and 

omissions; and 

(3) pay the printer in a timely manner. 

E. Lost or Destroyed Paper Warehouse Receipts 

(1) The Warehouse Operator may issue a replacement warehouse receipt subject to the same terms and 

conditions and bearing on its face the number and the date of the original warehouse receipt. 

(2) Before issuing a replacement warehouse receipt, the Warehouse Operator must require the holder or 

lawful owner applying therefore to make and file with the Warehouse Operator the following: 

(a) an affidavit showing (each of the following): 

(i) that the holder or lawful owner is lawfully entitled to possess the original warehouse 

receipt; 

(ii) that the holder or lawful owner has not negotiated or assigned the original warehouse 

receipt to another person or entity; 

(iii) how the original warehouse receipt was lost or destroyed; and 

(iv) if lost, that diligent efforts were made to find the warehouse receipt without success. 

(b) an assurance, in the form of a bond or personal guarantee, for a period of not less than 6 years, 

equal to an amount two times the value of the grain represented by the lost or destroyed paper 

warehouse receipt. This assurance shall be in a form approved by AMS and conditioned to 

indemnify the Warehouse Operator against any loss sustained as a result of issuing a replacement 

warehouse receipt. The assurance may be (any of the following): 

(i) a bond issued by a surety company. Such company must be authorized to do business and 

be subject to administration of process in a suit on the bond in the State in which the 

warehouse is located, unless a variance is granted by AMS; 

(ii) a personal guarantee, made by at least two individuals who are residents of the State and 

each of whom owns real property therein having a value, in excess of all exemptions and 

encumbrances, equal to the amount of the bond; or

(iii) other type of assurance, as approved by AMS. 

F. Canceled and Voided Paper Warehouse Receipts 

(1) The Warehouse Operator agrees to make available all canceled and voided original warehouse receipts 

for auditing, as requested by AMS. 

(2) All canceled warehouse receipts shall be defaced with the word “CANCELED” written in large, bold 

lettering and shall reflect the date canceled and instrument of cancellation (e.g. check number, contract 

number, return to storage, etc). The date of cancellation shall not precede the date shown on the 

original or replacement warehouse receipt that is in the possession of the Warehouse Operator. 
WA-402 (07-31-18) Page 26 of 41 

(3) Voided original warehouse receipts must be defaced with the word “VOIDED” written in large, bold 

lettering. 

3. Electronic Warehouse Receipts (EWRs) 

A. General - The Warehouse Operator, when choosing the option to issue EWRs instead of paper warehouse 

receipts for grain stored in the warehouse, agrees to (each of the following): 

(1) issue EWRs only through a provider approved by AMS; 

(2) inform AMS of the identity of the Provider at least 60 calendar days before issuing EWRs through that 

Provider. AMS may waive or modify this 60-day requirement as set forth under 7 CFR Part 735;

(3) request and receive from AMS, prior to issuing any EWRs, a range of consecutive warehouse 

receipt numbers, which the Warehouse Operator shall use consecutively when issuing EWRs; 

(4) cancel EWRs only when the Warehouse Operator is the holder of the EWR(s); 

(5) correct information on the EWR in accordance with the applicable Provider Agreement; 

(6) receive written approval from AMS at least 30 calendar days before changing Providers. Upon 

receiving notification of such approval, the Warehouse Operator may request that the current Provider 

transfer the EWR data from its CFS to the CFS of the new approved Provider selected by the 

Warehouse Operator. The Warehouse Operator shall instruct the new Provider to notify through its 

CFS all holders of outstanding EWRs of the identity of the new Provider at least 30 calendar days 

before changing Providers, unless otherwise authorized by AMS. The Warehouse Operator shall pay 

all charges, including transfer charges, due the current Provider before transferring EWRs to the new 

Provider. The Warehouse Operator may change Providers only once a year, unless otherwise 

authorized by AMS; and 

(7) not ship grain represented by an EWR until it is canceled in the EWR Provider’s CFS. 

B. Rights and Obligations 

The Warehouse Operator shall ensure that an issued EWR establishes the same rights and obligations with 

respect to grain as a paper warehouse receipt and that (each of the following applies): 

(1) the person identified as the holder of a EWR will be entitled to the same rights and privileges as the 

holder of a paper warehouse receipt; 

(2) only the current holder of the EWR may transfer the EWR to a new holder; 

(3) the identity of the holder shall be included as required information for every EWR; 

(4) only one person or entity shall be designated as an EWR holder at any one time; 

(5) an EWR may only be issued to replace an existing outstanding paper warehouse receipt if requested by 

the current holder of the paper warehouse receipt, and shall be issued only after the relevant paper 

warehouse receipt is surrendered and canceled; 

(6) an EWR holder has the option to authorize any other user of a Provider to act on the holder’s behalf 

with respect to activities engaged in with the Provider. Such authorization shall be in writing, and be 

acknowledged and retained by the Provider; and
WA-402 (07-31-18) Page 27 of 41 

(7) only the current EWR holder may request a paper warehouse receipt in lieu of an EWR with respect to 

an agricultural product. 

C. EWR Data Requirements 

(1) Every EWR, whether negotiable or non-negotiable, issued for grain stored in a USWA warehouse, in 

addition to complying with the requirements of Section 11 of the USWA and Section F - Warehouse 

Receipts, subsection 1 of this Agreement, shall embody each of the following within its terms: 

(a) the name of the Warehouse Operator and the designation, if any, of the warehouse facility; 

(b) the location of the warehouse in which the grain is stored; 

(c) the Warehouse Operator’s license type and license number (“US” - designating the EWR as 

being issued by the USWA licensee) is to precede the EWR receipt number; 

(d) the CCC storage agreement code number, if applicable; 

(e) the issuance date of the EWR; 

(f) the consecutive number of the EWR; 

(g) the name of the current holder of the EWR; 

(h) the name of the previous holder from which the EWR was received (if applicable); 

(i) cancellation date (if the EWR has been canceled); 

(j) warehouse location where the EWR was issued (city and state); 

(k) a statement whether the grain received will be delivered to the holder, to a specified person or to 

their order; 

(l) dockage and foreign material, as applicable; 

(m) the rate of storage charges; 

(n) prepaid storage and handling charges, if applicable; 

(o) a description of the grain received, including the quantity, kind, class, grade, and the standard or 

description in accordance with which such classification has been made. 

(i) The grade stated on the EWR must be the weighted average of the numeric grades as 

determined by the inspector and as indicated on the applicable inspection certificate(s); 

however, if an appeal of the grade determination has been requested and obtained, the grade 

stated on such EWR shall be the final appeal grade. 

(ii)Except in the case of identity-preserved and conjoint-storage grain, if, at the request of the 

depositor, the Warehouse Operator issues an EWR omitting the statement of grade, such 

EWR shall state clearly and conspicuously the following statement: “Not graded on request of 

the depositor.”

(p) a statement that the warehouse receipt is issued subject to the USWA, the regulations and this 

Agreement and its terms and conditions; 
WA-402 (07-31-18) Page 28 of 41 

(q) a statement of the amount of advances, if made, and of liabilities incurred regarding warehouse 

storage, handling and other charges claimed by the Warehouse Operator; however, if the precise 

amount of such advances made or of such liabilities incurred is unknown to the Warehouse 

Operator (or to the authorized agent who issues it) at the time the EWR is issued, it is sufficient 

to include a statement that advances have been made or liabilities incurred, as well as their 

purpose; 

(r) if issued showing the Warehouse Operator as owner, either solely or jointly in common with 

others, the fact of such ownership; 

(s) such other terms and conditions within the limitations of the USWA and this Agreement as may 

be required by AMS or the Secretary; 

(t) a statement of the Warehouse Operator’s business organization type (e.g. sole proprietorship, 

corporation, partnership, limited liability company) and the name of the State whose laws govern 

that organization (e.g. “a Texas corporation”); 

(u) in the event the relationship existing between the Warehouse Operator and any depositor is not 

that of a strictly disinterested custodianship, a statement setting forth the actual relationship; 

(v) a statement, conspicuously placed, that the grain is insured by the Warehouse Operator against 

loss or damage by fire, lightning, windstorm, cyclone, tornado, inherent explosion or other 

special peril risks; 

(w) net weight of the grain; 

(x) if the grain represented by the EWR is identity-preserved or conjoint-stored product, the words 

“identity-preserved” or “conjoint” grain storage and the specific bin(s) or warehouse location of 

such grain; 

(y) the terms “Non-Negotiable or “Negotiable” as appropriate to the nature of the warehouse 

receipt;

(z) name of the person whose electronic signature is authorized for the EWR; and 

(aa) paper warehouse receipt number (if applicable). 

Section G - Service Licenses 

No person will in any way represent themselves as an inspector, sampler, classifier, and/or weigher licensed under 

the USWA unless such person holds a valid (neither suspended nor revoked) license issued under the USWA. 

AMS reserves the right to suspend or revoke any service license for due cause. 

FGIS official service providers are not required to obtain a service license under the USWA. 

1. Warehouse Operator’s Responsibility 

The Warehouse Operator is responsible to (each of the following): 

A. have at least one person licensed to perform inspection, sampling, classifying, and/or weighing of grain at 

the warehouse; 

B. notify the Warehouse and Commodity Management Division (WCMD) when a person holding a service 

license: 

(1) discontinues to provide service at the specific warehouse they serve; or
WA-402 (07-31-18) Page 29 of 41 

(2) is no longer is employed by the Warehouse Operator. 

C. post conspicuously, at a publicly accessible location at the warehouse, including the grain-receiving area, a 

copy of the certificate of license or other AMS-approved evidence of licensing under the USWA for each 

person performing the service(s) at that location. 

2. Applicant’s Responsibility 

The Applicant requesting a service license under the USWA: 

A. must make application for a license to inspect, sample, classify, and/or weigh grain as directed by AMS. 

Each application shall: 

(1) be signed by the applicant; 

(2) be certified by a statement from the Warehouse Operator that the applicant is competent and 

authorized to perform the duties of a licensed inspector, sampler, classifier, and/or weigher; 

(a) If the applicant is seeking an inspection license, the Warehouse Operator or authorized agent shall 

certify that such applicant can correctly inspect, sample, and classify grain in accordance with the 

United States Standards or, in the absence of such standards, in accordance with standards 

accepted by AMS. 

(b) If the applicant is seeking a weigher’s license, the Warehouse Operator or authorized agent shall 

certify that such applicant can correctly weigh grain.

(3) furnish such additional information as requested by AMS. 

B. may be required to submit to an examination or test to demonstrate the ability to properly inspect, sample, 

classify, and/or weigh grain in accordance with the United States Standards. 

C. make available for inspection the equipment used or to be used to perform such duties. 

3. Duties of the Licensed Inspector, Sampler, Classifier, and/or Weigher. 

Each inspector, sampler, classifier, and/or weigher, licensed under the USWA whose license remains in effect 

must (each of the following as applicable): 

A. perform the requested services for which licensed when given grain to inspect, sample, classify, and/or 

weigh, under conditions that permit proper inspection, sampling, classifying, and/or weighing, without 

discrimination, as soon as practicable and upon reasonable terms; 

B. make accessible to the depositor at the location of the licensed warehouse, a copy of the inspection 

certificate issued by the licensed inspector, as soon as possible after inspecting any grain, and not later than 

the close of business on the next business day following the performance of such duties, unless requested 

otherwise by the depositor; 

C. permit any authorized individual to inspect or examine, on any business day during the usual and 

customary hours of business, the books, papers, records, and accounts relating to the performance of their 

duties under the USWA, and to assist any such authorized individual in the inspection or examination into 

the performance of the duties of such inspector, sampler, classifier, and/or weigher licensed under the 

USWA; 

D. file and retain for a period of 6 years after December 31 of the year in which the documents were created, 

each paper or electronic inspection or weight certificate issued, and make such certificates accessible upon 

request to interested parties at the warehouse location where the grain is stored; and 
WA-402 (07-31-18) Page 30 of 41 

E. in addition to meeting the requirements in A through D of this part, the licensee shall be subject to 

suspension or revocation under conditions described in Section R - Warehouse Operator Failures and 

Defaults – Remedies, as determined by AMS. 

4. Service License Format 

Service licenses will be issued in a form or format determined by AMS. 

Section H - Inspection and Weight Certificates 

Inspection and weight certificates may be in paper or electronic format. Proof copies of formats must be approved 

in advance by AMS. 

1. Inspection Certificates 

A. Each inspection certificate issued under the USWA shall be on a form approved by AMS and shall 

include the following information within its terms: 

(1) the caption “United States Warehouse Act, Grain Inspection Certificate”;

(2) whether it is an original, a duplicate or other copy, and that it is Not Negotiable; 

(3) the name and location of the warehouse in which the grain is stored or is to be stored; 

(4) whether the certificate represents grain moving into or out of the warehouse; 

(5) the date the certificate is issued; 

(6) the consecutive number of the certificate; 

(7) the quantity of grain represented by the certificate; 

(8) the kind and class of grain represented by the certificate; 

(9) the amount of foreign material and dockage, if applicable; 

(10) the grade of the grain, as determined by such duly licensed inspector, in accordance with the United 

States Standards and, in the case of grain for which no official standards of the United States are in 

effect, the standards or description in accordance with which such grain is inspected; 

(11) the statement “Inspection not valid for purposes of the United States Grain Standards Act”;

(12) a statement that the certificate is issued by an inspector licensed under the USWA and the 

regulations; and 

(13) the signature of the licensed inspector who inspected the grain. 

B. In addition to the provisions of part A, the inspection certificate may include other information consistent 

with the USWA or its regulations, if pre-approved by AMS. 

C. In lieu of a USWA inspection certificate in the form prescribed in part A (above) of this Section, an official 

certificate issued pursuant to the AMA or the USGSA on grain stored or to be stored in a warehouse 

licensed under the USWA will be acceptable for purposes of the USWA and its regulations. 
WA-402 (07-31-18) Page 31 of 41 

D. When the inspection is performed by FGIS official service providers and the information is included on the 

USWA inspection certificate, the Warehouse Operator shall insert the language “Inspection performed by 

an official service provider. Records on file.” on the inspection certificate in the area that would normally 

show the name of the service license holder who performed the actions. Any reference on a USWA 

inspection certificate to a specific official service provider is not allowed. 

E. The Warehouse Operator will retain and file any documentation (log) of inspection of the grain prepared by 

the official service provider from which the USWA inspection certificate was prepared. 

2. Weight Certificates 

A. Each weight certificate issued under the USWA shall be on a form approved by AMS and shall include 

the following information within its terms: 

(1) the caption “United States Warehouse Act, Grain Weight Certificate”;

(2) whether it is an original, a duplicate, or other copy, and that it is Not Negotiable; 

(3) the name and location of the warehouse in which the grain is stored or to be stored; 

(4) a statement indicating whether the grain is weighed into or out of the warehouse; 

(5) the date the certificate is issued; 

(6) the consecutive number of the certificate; 

(7) the weight of grain represented by the certificate; 

(8) a statement that the certificate is issued by a weigher licensed under the USWA and the regulations; 

and 

(9) the signature of the licensed weigher. 

B. In addition to the provisions of subsection A (above) of this Section, the weight certificate may include any 

other matter consistent with the USWA or its regulations in this part, if pre-approved by AMS. 

C. In lieu of a USWA weight certificate in the form prescribed in subsection A (above) of this Section, an 

official weight certificate issued pursuant to the AMA or the USGSA on grain stored or to be stored in a 

warehouse licensed under the USWA will be acceptable for purposes of the USWA and its regulations. 

3. Inspection and/or Weight Certificates 

The kind, class, grade, and weight of any grain, ascertained by an inspector, sampler, classifier, and/or weigher 

licensed under the USWA may be stated on a certificate in compliance with the combined requirements of 

subsections 1 and 2 of this Section provided the form of the certificate is pre-approved for this purpose by 

AMS. 

Section I - Determining Quality 

1. Official United States Standards 

The Official United States Standards are hereby adopted as the official standards for the purposes of the USWA 

and the regulations. 

2. Standards of Kind, Class, and Grade for Other Grain 
WA-402 (07-31-18) Page 32 of 41 

Until United States Standards are established for the kind, class, and grade of grain to be inspected, the grade of 

the grain will be stated, subject to the acceptance by AMS (any of the following): 

A. in accordance with the standards, if any, established by the State in which the warehouse is located; or

B. in the absence of any State standards, in accordance with the standards, if any, adopted by the local board 

of trade, chamber of commerce, or by the grain industry generally in the locality in which the warehouse is 

located; or

C. in the absence of the standards mentioned in parts A and B of this subsection, in accordance with any 

standards accepted for the purpose by AMS. 

Section J - Grain Grading Appeals 

1. Ability to Appeal 

A. No person licensed under the USWA will, directly or indirectly, deter, prevent, or attempt to deter or 

prevent any party from requesting an appeal of the results of an inspection of grain. 

B. No rule, regulation, bylaw, or custom of any market, board of trade, chamber of commerce, exchange, 

inspection department or similar organization, nor any contract, agreement or understanding, will be 

grounds for refusing to determine an appeal. 

2. Appeal Procedure 

The depositor or holder of the warehouse receipt or the Warehouse Operator may request an appeal of the grade 

of grain stored, to be stored, or transferred into a warehouse. If the original inspection and/or grade certificate 

was issued by an inspector licensed under or authorized by the AMA or the USGSA, the appeal, including the 

amount of fees, will be governed by the regulations issued under that authority; otherwise, the appeal, including 

fees, will be governed by this Agreement as determined by AMS. 

3. Request for Appeal 

A. The Warehouse Operator agrees to make available to a depositor or holder of a warehouse receipt a split 

sample representative of grain delivered, in accordance with authorized grain-evaluation procedures, before 

the identity of the representative sample of grain has been lost, provided a written request is received from 

the depositor or holder by no later than the close of business on the first business day after being furnished 

the results of the original inspection. 

B. If an appeal is requested by the Warehouse Operator, notice must be given promptly to the owner of the 

grain. Oral notice may be made, if followed by written notice within two business days. 

C. A representative sample must be retained for third-party evaluation. The identity of that sample is not to be 

compromised until the appeal inspection results are determined. 

D. If the identity of the delivered grain has been maintained and if the parties are unable to agree on such a 

sample, a sample drawn by a duly licensed sampler, inspector, and/or grader in the presence of the 

interested parties shall be deemed binding. In no case is the sample to weigh less than 2,000 grams. 

4. Appeal Samples 

A. For grain graded under the United States Standards, the appeal sample is to be secured and delivered to an 

office charged with providing official grain inspection services under the AMA or the USGSA. Procedures 

used to determine the grade of the grain will be as set forth in regulations issued under the AMA or the 

USGSA as applicable. The sample is to be accompanied by (each of the following): 
WA-402 (07-31-18) Page 33 of 41 

(1) a copy of the written request for appeal; 

(2) the original grain inspection certificate upon which the appeal is based; and 

(3) an agreement to pay the costs of such inspection, as prescribed by the AMA or the USGSA. 

B. For grain not graded under United States Standards because such standards have not been established, the 

party requesting the appeal is to apply directly to AMS for consideration. AMS’s determination shall be 

binding on all interested parties. 

C. The sample of the grain subject to the appeal shall be submitted for inspection as soon as possible. The 

certificate representing the appeal inspection result will supersede the original inspection certificate. The 

original or a copy of the appeal inspection certificate is to be sent to the party requesting the appeal, with 

copies distributed to the depositor or holder of the warehouse receipt, the Warehouse Operator, and the 

licensed sampler and inspector executing the original certificate. 

5. Owner Not Compelled to Store Grain 

Nothing in this Agreement requires the owner or authorized agent of grain to store such grain with the 

Warehouse Operator after the appeal inspection. However, if the grain is stored, it shall be accepted for and 

delivered out of storage in accordance with the final grade determined through such appeal, and is subject to the 

Warehouse Operator’s lawful tariff for storage, handling, and other charges. 

Section K - Licensing of Emergency and Temporary Grain Storage 

1. The Warehouse Operator may, under certain conditions, license emergency and temporary storage space for 

commodities deemed storable by AMS. 

2. The Warehouse Operator agrees to (each of the following): 

A. request and obtain licensing of emergency and temporary space prior to utilizing it for storage; 

B. operate the emergency and temporary storage space in conjunction with the USWA-licensed warehouse; 

C. meet all security, net worth, financial assurance, and insurance requirements as required in Sections C, D, 

and E of this Agreement; 

D. provide access to the emergency and temporary storage space for examination purposes; 

E. maintain separate inventory records of each commodity stored in emergency and temporary storage space, 

as well as accounting for such commodities in their DPR; and 

F. provide written notification within 30 days of the date when all the commodities stored in temporary and 

emergency space have been removed. 

3. For emergency storage, the Warehouse Operator agrees to (each of the following): 

A. provide written justification that a need for emergency storage exists for the current crop year, in the local 

area including the exact location, kind of commodity, and quantity requested; 

B. receive authorization from AMS before using emergency storage space; 

C. move commodities into their USWA-licensed warehouse by: 

(1) March 31 following initial licensing for wheat, corn, grain sorghum, and other feed grains; and 
WA-402 (07-31-18) Page 34 of 41 

(2) other dates, as established by AMS, for other commodities. 

4. For temporary storage, the Warehouse Operator agrees to (each of the following): 

A. use asphalt, concrete, or other AMS-approved base materials; 

B. use rigid self-supporting sidewalls; 

C. provide adequate aeration; 

D. provide an acceptable covering or tarp, as determined by AMS; 

E. move commodities into their USWA-licensed warehouse by: 

(1) March 31 of the following crop year for rice and soybeans; 

(2) July 1 of the following crop year for wheat, corn, grain sorghum, and other feed grains; and 

(3) other dates, as established by AMS, for other commodities. 

F. provide written notification before reusing licensed temporary space for another crop year. 

5. If the Warehouse Operator chooses to continue using the emergency and temporary storage space for companyowned commodities after the respective final date, the Warehouse Operator agrees to (each of the following): 

A. remove that quantity of the commodity from the DPR; 

B. not use the commodity to cover the storage or warehouse-receipted obligations of the warehouse; and 

C. not include that quantity of the commodity in any USWA warehouse examination. 

6. The licensing of emergency and temporary storage space does not relieve the Warehouse Operator of 

obligations under the USWA. The Warehouse Operator is responsible throughout the authorized period for the 

quantity and quality of commodities stored in emergency and temporary storage space to the same extent as 

liability for licensed warehouse storage space. All commodities stored in approved emergency and temporary 

storage space are considered a part of the Warehouse Operator’s commingled inventory during the authorized 

storage period. 

Section L - Warehouses Regular for Delivery in Terminal and Futures Contract Markets 

For purposes of this Section, terminal and futures contract markets are any grain markets designated as futures 

contract markets under authority of the Commodity Exchange Act, as amended, (7 U.S.C. § 1-27f). 

Warehouse Operators whose licensed facilities are regular for delivery under the rules and regulations of an 

exchange or board of trade (i.e., warehouses whose warehouse receipts are accepted for delivery in satisfaction of 

futures contracts) agree to, when applicable (each of the following applies): 

1. maintain financial assurance, in addition to the requirements of Sections C and D of this Agreement, in the 

maximum amount required of non-licensed warehouse operators by the exchange, board of trade, or other 

agency within the terminal or futures market. 

2. permit, with AMS approval, duly authorized person(s) of any exchange or board of trade in such a market to 

accompany authorized individuals to USWA-licensed warehouses regular for delivery to observe an official 

examination of the warehouse or to participate in such an examination under the supervision and direction of 

the authorized individual in charge. Access is to be granted to the Warehouse Operator’s business records for 

warehouse receipts, fire insurance, and inspection and weight certificates that are required to be issued pursuant 
WA-402 (07-31-18) Page 35 of 41 

to this Agreement. In lieu of such examination, AMS will furnish, at the option of exchange or board, a 

summarized statement of AMS’s findings. 

3. register all warehouse receipts with the duly authorized registrar and report changes in ownership to the 

registrar. 

4. When grain represented by warehouse receipts deliverable in satisfaction of futures contracts in such a market is 

discovered to be going out-of-condition and the Warehouse Operator is unable to condition the grain or stop the 

deterioration, the Warehouse Operator agrees to (each of the following apply): 

A. immediately notify the registrar and AMS. Such notification shall include: 

(1) the warehouse location in which the grain is stored; 

(2) the quantity, kind, class, and grade of the grain at the time notification occurred; 

(3) the actual condition of the grain, as nearly as can be ascertained; 

(4) the reason for the current condition, if known; and 

(5) a statement that the grain will be redelivered upon the presentation of the warehouse receipt and 

payment of charges. 

B. follow instructions received from AMS. 

C. maintain a warehouse record copy of all notices and correspondence. 

5. The Warehouse Operator may: 

A. hold such grain for the owner’s account, if the owner fails to remove such grain, with any loss of quality 

designated for the owner’s account. 

B. fulfill contracts with other stocks under the Warehouse Operator’s control subject to the USWA, the 

regulations and this Agreement. 

6. Warehouse Operators licensed under the USWA operating in such terminal and futures markets and issuing 

warehouse receipts deliverable in satisfaction of futures contracts shall assure AMS that the following 

conditions exist in order to participate in such a market: 

A. Any employee operating in a market who weighs grain into or out of a USWA-licensed warehouse shall be 

licensed under the USWA to weigh grain or be an FGIS official service provider. 

B. Any appointed registrar of warehouse receipts in such a market shall not be a USWA-licensed Warehouse 

Operator or their employee, nor a depositor of grain in a warehouse licensed under the USWA in such a 

market. 

Section M - Dispute Resolution and Arbitration 

1. A person may initiate legal action in any district court of the United States concerning a claim for 

noncompliance or an unresolved dispute with respect to activities authorized under the USWA. 

2. Any claim for noncompliance or an unresolved dispute between the Warehouse Operator or USWA Provider 

and another party with respect to activities authorized under the USWA may be resolved by the parties through 

mutually-agreed upon arbitration procedures. 
WA-402 (07-31-18) Page 36 of 41 

3. In no case will AMS provide assistance or representation to parties involved in a court or arbitration 

proceeding arising with respect to activities authorized under the USWA and the regulations. 

Section N - Temporary Suspension 

AMS may temporarily suspend the USWA license of the Warehouse Operator prior to an opportunity for a 

hearing. 

1. The grounds for temporary suspension imposed by AMS include, but are not limited to: 

A. violations of, failure to perform the duties specified, or failure to meet the requirements of the USWA, the 

regulations, and/or this Agreement. 

B. failure to maintain legal or operational control of the warehouse. 

C. indication or commission of a fraudulent act. 

D. incapacity or incompetence of the Warehouse Operator. 

E. participation in a field warehousing agreement. 

F. failure to make timely settlement and payment to depositors. 

G. any action by the Warehouse Operator that may place depositors and storage obligations at risk. 

H. failure to provide a safe work environment or noncompliance with safety regulations of the Occupational 

Safety and Health Administration (OSHA). 

I. failure to ensure adequate security or protection of stored or handled grain from tampering or adulteration. 

J. failure to pay fees required under this Agreement. 

K. failure to provide financial assurance. 

2. Upon temporary suspension, the Warehouse Operator will: 

A. not create further storage obligations without approval of AMS. Specifically: 

(1) no USWA inspection and/or weight certificates are to be issued; 

(2) no warehouse receipts are to be issued; and 

(3) licenses to inspect, sample, classify, and/or weigh grain shall be temporarily suspended. 

B. not remove or deliver from inventory any stored grain without prior approval of AMS. 

C. take corrective action within the time frame specified in the temporary suspension. 

D. not represent the warehouse as licensed in good standing or perform the functions of a licensed USWA 

Warehouse Operator. 

E. be notified: 

(1) by mail, email, phone or fax of the suspension; 
WA-402 (07-31-18) Page 37 of 41 

(2) of the reason for the suspension; 

(3) of the fact of an on-going review of the situation; 

(4) of the time period for expected compliance; 

(5) whether public notice will be made of a temporary suspension and of subsequent revocation of the 

USWA license; 

(6) that revocation of the USWA license may be anticipated for noncompliance; and 

(7) that progression from temporary suspension to revocation may be appealed as presented in 

Section R - Warehouse Operator Failures and Defaults - Remedies. 

Section O - Unjust Enrichment 

Upon a finding by AMS that the Warehouse Operator received profits from the sale and replacement of grain not 

owned by the Warehouse Operator, the Warehouse Operator shall, when instructed by AMS, pay to the general 

group of depositors a pro-rata share of those profits attributed to the amount of depositor-owned grain in-store. The 

amount of profit will be determined by first-in, first-out inventory method. The profit will be calculated by 

comparing the price at which the grain was sold versus the price of the replacement grain. Any losses resulting from 

the sale and replacement of depositor-owned grain shall be for the account and the responsibility of the Warehouse 

Operator, and are not to be offset against profits paid to the general group of depositors. 

Section P - Unearned Storage 

Upon a finding by AMS that the Warehouse Operator received storage charges from depositors during any period 

that the Warehouse Operator’s inventory was less than the Warehouse Operator’s total warehouse-receipted and 

non-warehouse-receipted storage obligations, the Warehouse Operator shall, when instructed by AMS, reimburse 

storage charges to depositors on a pro-rated basis for the period that the shortage existed. 

Section Q - Fines and Penalties 

Warehouse Operators and their employees are subject to the provisions of criminal and civil fraud statutes that apply 

to making a false certification or statement, illegal conversion, or removal of stored grain from USWA-licensed 

space, fraudulent adjustments or corrections, and concealment of operational or financial condition. Such violations 

may be punishable by imprisonment, fines, and other penalties, including, but not limited to, the following: 18 

U.S.C. 286, 287, 371, 641, 651, 1001 and 1014; and 31 U.S.C. 3729.

Section R - Warehouse Operator Failures and Defaults - Remedies 

1. AMS may initiate suspension and revocation of the Warehouse Operator’s license and liquidation of grain 

storage: 

In the event of (any of the following): 

A. failure to: 

(1) perform services required under this Agreement; 

(2) maintain minimum financial requirements; 

(3) provide proper financial statements; 

(4) provide financial assurance; or
WA-402 (07-31-18) Page 38 of 41 

(5) maintain legal or operational control of the warehouse. 

B. commission of a fraudulent act. 

2. Suspension, revocation, and liquidation shall be conducted in accordance with the adverse determination rules 

in 7 CFR Part 735.8, which provide for a hearing before AMS. 

3. The Warehouse Operator may request revocation of their license and, if appropriate, liquidation of obligations, 

in which case the USWA license will be revoked and liquidation accomplished, if appropriate. 

4. Upon a finding of failure, the commission of a fraud, or at the Warehouse Operator’s request, AMS may (take

any of these actions): 

A. seize and take possession of: 

(1) the control of the warehouse facility(ies), office(s), and/or grain inventories involved; 

(2) any grain controlled by the Warehouse Operator in any manner; 

(3) all books, papers, and property used in the operation of the warehouse; 

(4) monetary or bartered proceeds of any unauthorized grain sale; 

(5) any involved authorized or unauthorized conveyance and its contents; and/or 

(6) any grain in transit. 

B. liquidate the grain contained within the warehouse or controlled by the Warehouse Operator and use the 

proceeds to satisfy valid claims as determined by AMS. 

C. recover from the Warehouse Operator necessary expenses incurred by AMS as a result of these seizure 

and liquidation procedures. 

D. require the Warehouse Operator to continue to provide, to the extent possible: 

(1) all utility services; 

(2) required insurances; 

(3) resources and assistance in obtaining labor necessary to operate the facility(ies) until all grain 

inventories have been liquidated, and 

(4) equipment necessary for the operation of the warehouse. 

E. exercise a claim on the letter of credit or other financial assurances executed in the name of USDA or in 

favor of the United States, if applicable. 

5. Should liquidation become necessary, the following is the order of distribution of available liquidated funds: 

A. validated warehouse-receipted and unreceipted storage obligation claims, excluding company-owned, for: 

(1) commingled grain. 

(2) grain segregated in storage because of special characteristics (may be joined with the other grain instore). 
WA-402 (07-31-18) Page 39 of 41 

B. disputed storage-obligation claims. 

C. lien-holder claims for warehouse charges and warehouse-owned claims. 

D. Claims for grain belonging to the Warehouse Operator or a Principal will be subordinate to all other claims. 

6. If bankruptcy occurs, certain terms and conditions of this Agreement may be subject to the authority of a 

Federal Bankruptcy Court’s jurisdiction regarding the disbursement of liquidated inventory proceeds and 

associated expenses and charges. 

Section S - Fees 

1. AMS is authorized to collect fees to cover the administration of the USWA-licensed warehouse activities. The 

schedule of fees is set by AMS. 

Warehouse Operators shall pay: 

A. annual fees. Fees are determined by computing capacity by location (as defined by AMS) and applying 

the Annual Schedule of Fees (see Fee Schedule on AMS/USWA Web Page). Annual fees are invoiced and 

paid prior to license issuance and annually thereafter. Fee changes will be published in the Federal 

Register. 

B. licensing fees. Such fees are invoiced and payable for the following and are paid in advance of service. 

(1) original and amendment licensing actions, and 

(2) licenses to inspect, sample, classify, and/or weigh grain. 

C. fees for additional and/or special warehouse examination services. 

(1) Reinstatement fees for suspended licenses are invoiced at the examination/inspection fee rate and 

may be required to be deposited in advance of reinstating the license. 

(2) Additional fees may be charged to the Warehouse Operator for examinations performed for noncompliance with the USWA, the regulations and/or this Agreement. 

(3) Special services performed by USDA-AMS representatives and requested by the Warehouse 

Operator are available at an hourly rate which is approved by AMS. These services are available for 

scheduling and invoicing from the WCMD office. (Please call for rates and services available and 

scheduling.) 

2. Fees paid in excess of actual fees owed will be refunded to the Warehouse Operator. 

3. All fees collected under this Agreement will be credited to the account that incurs the costs of administering the 

warehousing activities and are available without further appropriation and without regard to fiscal year 

limitations. A schedule of fees showing the fees described in this Section are detailed in a Federal Register 

notice. 

4. Fees remaining unpaid will subject the Warehouse Operator to suspension or revocation of their license upon 

notification by AMS. 
WA-402 (07-31-18) Page 40 of 41 

Warehouse Operator 

Principal Place of Business 

By signing this form, I (the Warehouse Operator) agree to all the terms and conditions set forth in the WA-402, 

Licensing Agreement for Grain and Rice Warehouse Operators and the regulations found at 7 CFR Part 735 and the 

statute found at 7 U.S.C. § 241 et seq. I understand that failure to comply with the provisions set forth in this 

Agreement and the regulations found at 7 CFR Part 735 and the statute, United States Warehouse Act, found at 7 

U.S.C. § 241 et seq may result in suspension, revocation, or liquidation. 

This completes the requirements for licensing of USWA Master Code 

For: 

At: 

By: 

Signature of Authorized Representative 

Date signed 

Date (MM-DD-YYYY)

Accepted for Agricultural Marketing Service By:

Signature 

Title 

Date 

Please sign this page and return it to: 

Warehouse and Commodity Management Division 

Mail Stop 9148 

Post Office Box 419205 

Kansas City, Missouri 64141-6205 

Phone: (816) 926-6474

Fax: (844) 930-0174
WA-402 (07-31-18) Page 41 of 41 

NOTE: The following statement is made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a - as amended). The

authority for requesting the information identified on this form is 7 CFR Part 735 and the United States Warehouse 

Act (7 U.S.C. § 241-273 et seq.). The information will be used to determine eligibility for initial licensing and 

continued licensing as identified in the terms and conditions set forth in this agreement between the Warehouse 

Operator and the Agricultural Marketing Service. The information collected on this form may be disclosed to other 

Federal, State, Local government agencies, Tribal agencies, and nongovernmental entities that have been 

authorized access to the information by statute or regulation and/or as described in applicable Routine Uses 

identified in the System of Records Notice for USDA/FSA-2, Farm Records File (Automated). Providing the 

requested information is voluntary. However, failure to furnish the requested information will result in a determination 

of ineligibility for initial licensing and continued licensing as identified in the terms and conditions set forth in this 

agreement between the Warehouse Operator and the Agricultural Marketing Service. 

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor and a person is not required 

to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number 

for this information collection is 0581-0305. The time required to complete this information collection is estimated to 

average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, 

gathering and maintaining the data needed and completing and reviewing the collection of information. 

The provisions of appropriate criminal and civil fraud, privacy, and other statutes may be applicable to the information 

provided. RETURN THIS COMPLETED FORM TO THE WAREHOUSE AND COMMODITY MANAGEMENT 

DIVISION, POST OFFICE BOX 419205, MAIL STOP 9148, KANSAS CITY, MO 64141-6205.

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, 

and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, 

religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a 

public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA 

(not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign 

Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the 

Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the 

information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: 

U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: 

(202) 690-7442; or (3) email: program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender. 
WA-402 (07-31-18) Page 42 of 41 

Instructions for WA-402 

LICENSING AGREEMENT FOR GRAIN AND RICE WAREHOUSE 

OPERATORS

The Warehouse and Commodity Management Division (WCMD) supplies grain and rice 

Warehouse Operators with a Licensing Agreement that incorporates the terms and conditions for 

licensing under the United States Warehouse Act. The Warehouse Operator reviews the provisions 

of the Licensing Agreement and signs the document indicating their agreement to abide by all 

provisions. 

The Warehouse Operator submits the document to WCMD via one of the following: 

• Hard copy mailed to Warehouse and Commodity Management Division, STOP 9148, P.O. 

Box 419205, Kansas City, MO 64141-6205;

• facsimile to 844-930-0174; 

• email as prearranged with WCMD. Please call (816) 926-6474 to arrange email 

transmission.

Note: To establish online access credentials with USDA, you may register on the eAuthentication 

web site, located at www.eauth.egov.usda.gov. 

When completing the Licensing Agreement, follow the instructions below. Please contact WCMD 

at (816) 926-6474 if assistance is needed. 

Field Name Instruction

Warehouse 

Operator 

Enter the complete name of the Warehouse Operator (Legal Entity) 

in the field titled “Warehouse Operator”. 

• For a proprietor, enter the proprietor’s name.

• For a corporation, enter “[Corporate name], a [State] 

Corporation,” where [State] indicates the state of 

incorporation. 

• For a general partnership, enter “[Names of partners], 

trading as [partnership name] under the laws of [State]” 

• For a limited partnership, enter “[Name of limited 

partnership], Limited Partnership under the laws of [State], 

[Name of signing general partner], General Partner”, where 

[State] indicates the State of organization. 

• For a limited liability company (LLC), enter “[LLC name], 

L.L.C., a [State] limited liability company” where [State] 

indicates the State of organization. 
WA-402 (07-31-18) Page 43 of 41 

Principal 

Place of 

Business 

Enter the Warehouse Operator (Legal Entity) Principal Place of 

Business 

Signature of 

Authorized 

Representative 

Signature of the authorized representative who has authority to bind 

the warehouse operator in a legal contract. See below for acceptable 

signatories: 

• For corporations, a signature resolution must be on file or a 

signature resolution must be sent with the bond for 

execution. 

• For General Partnerships, all partners must sign. 

• For Limited Partnerships, the general partner signs. 

• For LLCs provide signature according to the organizing 

documents. 

Date Enter the date of signature in (MM-DD-YYYY) format. 

“Accepted for Agricultural Marketing Service” will be completed by WCMD.