THIRTEENTH CONGRESS OF TH 
REPUBLIC OF THE PHILIP 
First Regular Session 
S. No. 
Introduced by Senator S. R. Osmefia 111 
EXPLANATORY NOTE 
Republic Act 3893, otherwise known as the General Bonded Warehouse 
Act, as amended, is the special law regulating the business of receiving 
commodities for storage and defining the rights and obligations of a bonded 
warehouseman and those transacting business with him as a bonded 
warehouseman. It covers every person engaged in the business of receiving 
commodities for storage, not only of rice and palay, but also of any other product, 
goods, articles or merchandise which may be traded or dealt openly and legally. 
RA 3893, as amended protects the rights of the owners of the commodity. 
Pursuant to such law, it shall be the obligation of every bonded warehouseman to 
deliver to the depositors in his storage warehouse the commodity received by 
him for storage, at any time demand is made, or to pay the market value thereof, 
in case he is unable to return the same. 
Despite RA 3893, the unlawful practice of withdrawing warehouse 
commodities without the knowledge of the owner of the commodity has continued 
unabated. Therefore, to add more teeth to RA 3893, this bill sees to hold as 
criminally liable every warehouseman who fails to produce the commodity 
corresponding to a warehouse receipt presented by the owner. The duty to 
ensure that there is no disparity between the physical commodity stored in the 
warehouse and all the outstanding receipts issued by the warehouse shall be 
imposed upon every owner or manager of a warehouse. 
In view of the foregoing, early approval of this bill is earnestly requested. 
SERGIO OSMENA III 
Senator 


i 
--- 
THIRTEENTH CONGRESS OF TH 
First Regular Session 
REPUBLIC OF THE PHILIPPINE 
s. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
HOLDING OPERATORS OF WAREHOUSES CRIMINALLY LIABLE FOR 
EMPTY WAREHOUSES, PROVIDING PENALTIES THEREFOR AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatbes of the Republic of 
the Philippines in Congress assembled: 
1 
Section 1. It shall be the duty of the owner or manager of a warehouse to 
2 
see to it that all outstanding receipts issued by the warehouse are at all times 
3 
backed by the corresponding volume of actual physical commodity stored in the 
4 
warehouse 
5 
Section 2. The owner or manager of the warehouse shall be guilty of a 
6 
criminal offense if it can be proven that the holder of a warehouse receipt is 
7 
unable to withdraw the amount of the commodity corresponding to his warehouse 
s 
receipt stored in the warehouse owing to the absence of the physical commodity 
9 
in which case the warehouse shall be considered an empty warehouse. 
I O  
Section 3. The owner or manager of the warehouse shall upon conviction 
I I 
by final judgment be punished by imprisonment ranging from two (2) years to ten 
12 
( I O )  years and a fine of not less than Five Hundred Thousand Pesos 
1 3  
(P500,OOO.OO) or three times the amount of the missing commodity, whichever is 
14 
higher. 


1 
2 
3 
4 
Section 4. 
All laws, decrees, executive orders, issuances, rules and 
5 
regulations or parts thereof which are inconsistent with the provisions of this Act 
6 
are hereby repealed or modified accordingly. 
I 
s 
If the operator of the warehouse is a corporation or association, the 
maximum penalty of ten (IO) years shall be imposed upon the chief executive 
officer, president, director, manager, or managing partners thereof. 
Section 5. This Act shall take effect fifteen (15) days after its complete 
publication in at least two (2) newspapers of general circulation. 
Approved. 
2