Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

HOUSE BILLNO._4234

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
PROVIDING FOR THE REVISED WAREHOUSE RECEIPTS LAW OF THE
PHILIPPINES TO STRENGTHEN FOOD SECURITY AND AGRICULTURAL
FINANCING, REPEALING ACT NO. 2137 AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Food security requires not only higher levels of agricultural production, but also
stronger post-harvest systems and affordable financing for farmers, fisherfolk, and
agribusinesses. One of the major constraints faced by the agriculture sector is the lack of
effective mechanisms to store produce, preserve its value, and use it as collateral for credit.
When farmers are forced to sell immediately after harvest at low prices, they lose bargaining
power, liquidity, and the ability to reinvest in future production.

Warchouse receipts address this gap. By allowing stored produce to be documented and
converted into negotiable instruments, warehouse receipts enable farmers to access financing
without distress selling. They stabilize supply, improve the timing of market entry, and reduce
post-harvest losses—critical elements in strengthening national food security.

The existing Warehouse Receipts Act (Act No. 2137), enacted in 1912, is outdated and
no longer adequate. It does not provide for a modem electronic registry, has weak accreditation
standards for warehouse operators, and does not integrate warehouse receipts into the broader
financial system. As a result, warehouse receipts remain underutilized as a tool for rural credit
and food system stability.

This bill seeks to modernize the law by:

1. Establishing a secure, centralized electronic Warehouse Receipts Registry under the
Securities and Exchange Commission, integrated with local sub-registries in accredited
‘warehouses.


2. Mandating accreditation, bonding, and insurance of warehouse operators, consistent
with global best practices in warehousing and agricultural finance.

3. Recognizing warehouse receipts as negotiable collateral under Republic Act No. 11057,
the Personal Property Security Act.

4, Integrating warehouse receipt-backed instruments into the mandatory agricultural
financing framework of Republic Act No. 11901, thereby aligning the system with
national credit allocation policies.

5. Imposing clear penalties for fraudulent issuance, misdelivery, or tampering with
warehouse receipts, to ensure confidence in the system.

By modemizing the warchouse receipts system, this measure provides farmers and
agribusinesses with a reliable financing tool, reduces waste, ensures fairer farmgate prices, and
promotes more stable markets. In doing so, it strengthens the foundations of food security, rural
development, and inclusive growth.

In view of the foregoing, the passage of this bill is eamestly sought.

OND ADRIAN SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 4234

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
PROVIDING FOR THE REVISED WAREHOUSE RECEIPTS LAW OF THE
PHILIPPINES TO STRENGTHEN FOOD SECURITY AND AGRICULTURAL
FINANCING, REPEALING ACT NO. 2137 AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION I. Short Title, This Act shall be known as the “Revised Warehouse Receipts
Law of the Philippines.”

SEC. 2. Declaration of Policy. It is the policy of the State to promote access to credit
by establishing a transparent, unified, and modern warehouse receipts system; to encourage
banks and financial institutions to extend credit secured by warehouse receipts, consistent with
Republic Act No. 11901; to protect the rights of depositors, farmers, traders, and financial
institutions; and to align Philippine warehouse practices with global standards to enhance trade,
investment, and agricultural competitiveness.

SEC. 3. Definition of Terms. For purposes of this Act:
(a) Electronic Warehouse Receipt refers to a warehouse receipt in electronic or digital
form.

(b) Warehouse Operator refers to a person lawfully engaged in the business of storing
goods intended to be used for trading or financing and duly accredited under this
Act.

(©) Registry refers to the centralized electronic warehouse receipts registry established
under this Act.

(@) Goods refer to agricultural or industrial products stored in warehouses for trading
or financing.


(e) Negotiable Receipt refers to a receipt in which it is stated that the goods received
will be delivered to the bearer or to the order of any person named therein.

(f) Non-Negotiable Receipt refers to a receipt in which it is stated that the goods
received will be delivered to the depositor or to another specified person.

(g) Collateralization refers to the use of warehouse receipts as security for loans under
Republic Act No. 11057, the Personal Property Security Act.

CHAPTER IL
ELECTRONIC WAREHOUSE RECEIPTS REGISTRY

SEC. 4. Establishment of Registry. The Securities and Exchange Commission shall
establish and maintain a centralized, electronic Warehouse Receipts Registry, accessible
nationwide. The Registry shall be the official record of warehouse receipts, and all rights and
transfers shall be effective only upon registration therein.

SEC. 5. Interoperability. The Registry shall be designed to interconnect with registries
maintained by the Land Registration Authority, the Bangko Sentral ng Pilipinas, the
Department of Agriculture, and other relevant agencies to ensure consistency, transparency,
and efficiency.

SEC. 6. Sub-Registries, Accredited warehouses shall maintain sub-registries integrated
with the central system, Entries in sub-registries shall have no legal effect unless mirrored in
the central Registry.

SEC. 7. Collateralization. All warehouse receipts may be used as collateral for secured
transactions under Republic Act No. 11057.

SEC. 8. AFRD Financing Eligibility, The Bangko Sentral ng Pilipinas may classify
instruments backed by registered warehouse receipts as eligible compliance assets for purposes
of Republic Act No. 11901.

CHAPTER III
ACCREDITATION OF WAREHOUSE OPERATORS

SEC. 9. Accreditation. No person shall operate as a warehouse operator for purposes of
issuing negotiable or electronic warehouse receipts without accreditation ftom the Securities
and Exchange Commission.

SEC. 10. Requirements. Accreditation shall require:

(a) Adequate capitalization and financial soundness.

(b) Posting of a bond sufficient to cover liabilities to depositors and holders of receipts.

(6) Insurance coverage consistent with international best practices.

(a) Compliance with technical and safety standards as prescribed by the Commission.


SEC. 11. Monitoring and Sanctions. The Securities and Exchange Commission shall
monitor accredited warehouses and may suspend or revoke accreditation for fraud, insolvency,
or violation of this Act.

CHAPTER IV
OBLIGATIONS, RIGHTS, AND LIABILITIES

SEC. 12. Obligations of Warehouse Operators. Warehouse operators shall deliver
goods upon demand of lawful holders of receipts, subject to liens; cancel or mark receipts upon
full or partial delivery of goods; exercise the care of a reasonably prudent owner; and keep
fungible goods properly segregated unless expressly authorized for commingling.

SEC. 13. Rights of Holders. Holders of negotiable receipts acquire title and rights
enforceable against warehouse operators and third parties in good faith.

SEC. 14. Liability, Warehouse operators shall be liable for fraudulent issuance,
misdelivery, or alteration of receipts, without prejudice to civil or criminal actions under this
Act.
CHAPTER V
PENAL PROVISIONS

SEC. 15. Fraudulent Issuance. Any person who issues a receipt without actual goods
in storage shall be punished by imprisonment of up to ten years and a fine equivalent to triple
the value of the goods involved.

SEC. 16. Fraudulent Duplication or Alteration, The creation of fraudulent duplicate
receipts or alteration of registered receipts shall be subject to the same penalties.

SEC. 17. Misdelivery and Unauthorized Release. Misdelivery or release of goods
without cancellation of receipts shall likewise be punishable under this Act.

CHAPTER VI
FINAL PROVISIONS

SEC. 18. Appropriations. The amount necessary to implement this Act shall be charged
against the current appropriations of the Securities and Exchange Commission. Thereafter,
such sums as may be necessary shall be included in the annual General Appropriations Act.

SEC. 19. Implementing Rules and Regulations. Within ninety days from effectivity, the
Securities and Exchange Commission, in coordination with the Department of Agriculture,
Department of Finance, and the Bangko Sentral ng Pilipinas, shall issue the rules and
regulations necessary to implement this Act.

SEC. 20. Repealing Clause. Act No. 2137, otherwise known as the Warehouse Receipts
Law, and all other inconsistent laws and issuances are hereby repealed or modified accordingly.

SEC. 21. Separability Clause. If any provision of this Act is declared unconstitutional,
the remaining provisions shall continue in full force and effect.


SEC. 22. Effectivity. This Act shall take effect fifteen days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,