federalnegaritgazeta - fsc.gov.et gazeta/gazeta-1996/proc no. 372-2003... · ii ~. ~-r. ~ ~
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toYo&-/A ";J~T ;JltlfJFEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
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10thYear No.2
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CONTENTS
Proclamation No. 372/2003The Proclamation to Provide for a WarehouseReceipts System Page 2407
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---"
PROCLAMA TION NO. 372/2003.PROCLAMATION TO PROVIDE FOR A
WAREHOUSE RECEIPTS SYSTEM
WHEREAS, it has been necessary to introduce a system thatenables the farmer whenever supply exceed demand todeliver his products to the warehouseman upon receipt ofdocument of title to the products and to reclaim his products;
WHEREAS, the producer benefits from such a system, thatconstitutes a valid contract between the bailee and the bailor,which entitles the latter to transfer his rights over the storedproducts to any buyer by simple delivery of the receipt;
WHEREAS, the system enables the bailor to borrow moneyfrom banks or similar lending institutions upon offeringwarehouse receipt as collateral;
WHEREAS, the system insulates the producer from priceshocks; promotes efficient marketing of standardized agricul-tural products and financial activities;
NOW, THEREFORE, in accordance with Article 55(1) of theConstitution of the Federal Democratic Republic of Ethiopiait is hereby proclaimed as follows:-
PART ONE
General Provisions
1. short Title
This Proclamation may be cited as "The Proclamation toProvide for a Warehouse Receipts System No. 372/2003."
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Federal Negarit Gazeta - No.2 14thOctober, 2003-Page 2408
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2. Definitions
Unless the context reqUires otherwise; in this
Proc1amation:-1) "Agricultural Product" means a product as may;
from time to time be determined as an agricultural
product by the Ministry or its designate.
2) "Bailee" means a person who, by a warehouse
receipt or similar other instrument; acknowledges
possession of goods; including agricultural products;
and undertakes to deliver them to the bailer or his
transferee in accordance with the provisdions of this
Proclamation.
3) "Bailor" means a person who, on his own or
through a lawful agent, delivers goods to a
warehouseman for the purpose of storage in the
latter's warehouse with the intention of reclaiming
the goods, transferring them to a third party oroffering them as collateral to a lending institution or
other persons.4) "Contract of warehousing" means a contract
whereby one party, the warehouseman, being duly
licensed by the appropriate organ, undertakes to
receive and store goods on behalf of either of the
bailor or of the purchaser of the goods or of a person
who receives it in pledge.5) "Delivery" means the process of voluntary transfer
of possession of goods by a bailer to a
warehouseman and the redelivery thereof to the
bailer his transferee or his pledgee.
6) "Document" means an instrument on which any
matter of substance is expressed or described by
means of letters, figure, marks, or by more than one
of these means and intended to be used or which may
be used for the purpose of recording that matter.7) "Document of title to goods" means a written
description; identification or declaration of goods
which, in the regular course of business or financing,
is treated as evidencing that the person in possession
of it is entitled to receive, hold and dispose of the
document and the goods it covers.
8) "Electronic document" means a document
generated, sent, received or stored by electronic,
optical or similar means including, but not limited to,
electronic data interchange, electronic mail,
telegram telex or telecopy.9) "Fungibles" means goods of which any unit is, by
nature or usage of trade, treated as the equivalent ofany other unit.
10) "Goods" means all corporeal movables which
may be subject to a contract of warehousing under
this Proclamation.
11) "Holder" means a person who is in possession of a
warehouse receipt issued or endorsed to him or to
his order or to bearer or in blank.
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12) "Holder in due course" means a person who is in
possession of a negotiable warehouse receipt for con-
sideration, in good faith and without notice of any prior
claim or defense against it.
13) "Negotiable warehouse receipt" means a warehouse
receipt that is legally capable of being transferred by
endorsement or delivery.
14) "Ministry or Minister" m,eans the Ministry and Minister
of Trade and Industry respectively of the Federal
Democratic Republic of Ethiopia.
15) "Person" means any physical or juridical person.
16) "Security interest" means an interest in goods kept in
warehouse obtained pursuant to a security agreement for
the performance of an obligation by the bailor towards
the warehouseman or a third party.
17) "System Provider" means a person wherever domiciled
who provides services to a licensed warehouse operator
in matters pertaining to management, to the provisions of
electronic records, and to the setting up and maintenance
of computer based systems to manage and record
transactions in respect of electronic receipts.
18) "Warehouse" means a building or other protected
enclosure in the lawful possession and exclusive control
of a warehouseman in which goods are stored in
accordance with the provisions of this Proclamation.
19) "Warehouseman/opera~or" means a person who,
professionally and for gain, is engaged in the business of
storing goods for others.
20) "Warehouse receipt" means a written acknowledgment
drawn in accordance with this Proclamation and issued
by a warehouseman purporting receipt of goods belon-
ging to another for storage and includes electronic
warehouse receipts,
21) "Rights to Lien" it is a preferential rights of the
warehouse man over the goods stored in awarehouse or
over the pleadgee of warehouse recipts or over the bailer
or his transferee on the proceeds earned from sale of the
goods, in relation to the cost incurred persuant to the
provision of this proclamation to store, prepare,pack,
transport, insure and for Labour and professional work
and incurred to preperly handled the goods and sale.
includily the unpaid and remaining warehouse cost.
3. Objectives
This Proclamation shall have the fol.lowing objectives:
1) to enable any person store his goods and iij particular
standardized agricultural products in warehouses
and borrow money upon delivery of the warehouse
receipt as collateral:
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Federal Negarit Gazeta - No.2 14~1Ooctober. 2003-Page 2410
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2) to establish a valid contract between the bailee and thebailor and to properly direct and administer the system:and
3) to create .organized and efficient marketing system foragricultural products.
4. Scope of Application
1) Unless otherwise expressly provided by speciallaws, this Proclamation shall apply to' all forms oftransaction arising out of and in connection withcontracts of warehousing.
2) The relevant provisions of the 1960 Civil andCommercial Codes of Ethiopia shall complementthis Proclamation.
PART TWOIssuance of Warehouse Receipts
5. Bodies Capable Qf Issuing Warehouse Receipts1) Being given the appropriate incentive by the Gover-
nment, cooperative societies registered and licensedto undertake warehousing business pursuant to theprovisions of this Proclamation, may issuewarehouse receipts.
2) A Private Limitted Company, a share company orpublic enterprise registered and Licensed for thepurpose of undertaking warehousing business inaccordance with the provisions of this Proclamation,may issue warehouse receipts.
6. Form of Warehouse Receipts1. Upon receipt of goods for storage, a warehouse
ope'rator shall, when requested by the bailor, issue awarehouse receipt or any' number of warehousereceipts as the case may be in the form specifiedunder Sub-Article (2) hereof.
2) Awarehouse receipt shall contain the followingparticulars:(a) a statement that the warehouse receipt is issued
in accordance with the provisions of thisProclamation;
(b) the name, address and registration number ofthe warehouse operator;
(c) the location of the warehouse or other placeswhere the goods are stored;
(d) the date of issue of the warehouse receipt;(e) the consecutive number of the warehouse
receipt;(f) the name and address of the person by whom or
on whose behalf the goods are stored; .(g) the rate of storage charges;(h) the kind, quality and quantity of the goods
represented by the warehouse receipt;(i) the cost of the goods at the time when it is stored
at the warehouse;U) the time limit until when the goods are to be
storc;~d;(k) a statement of the amount of any advance made
and of any liability incuiTed for which thewarehouse operator claims a lien or has asecurity interest;
(I) an undertaking by the warehouse operator todeliver the goods on demand; and
(m) the signature of the warehouse operator..
1~' !tit1!fIli u.,t.t. ";Jt.}- ;J1~tlJ <111'C11':j>S"'.}- r +1 liltti '}.S"'.
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Federal Negarit Gazeta - No.2 14chOctober, 2003-Page 2411
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3) Without prejudice to the provisions of thisProclamation pertaining to the obligation of awarehouse operator to deliver the goods on demandand to his duty of care and diligence, a warehousereceipt may contain in it any other term that betterdefines the relationship of the parties to the transac-tion.
4) Where a warehouse operator omits to include anyone of the particulars specified under Sub-Article (2)hereof, he shall be liable for damages arising out ofsuch omission provided, however, that no receiptshall be deemed not to be a warehouse receipt byreason of such omission.
5) A warehouse receipt shall provide enough space toregister its negotiation thereof to some specifiedperson in accordance with the provisions of thisProclamation.
6) Subject to reasonable service charges, a warehouseoperator, may upon request by the holder of awarehouse receipt, replace a warehouse receipt withWarehouse receipts of smaller denomination whichare of the like tenure and warehouse charge as the re-placed one. He may likewise replace warehouse re-ceipts of smaller denomination with greater one (s).
7. Legal Status of a Warehouse Receipt
1) A duly drawn up warehouse receipt delivered to abailor shall constitute a valid contract between awarehouse operator and a bailor.
2) The relevant provisions of the 1960 Civil Code ofEthiopia on Contracts in General and on Contracts ofBailment in particular may supplement thisProclamation in governing the relationship of partiesto a warehouse receipt.
8. Over Issue of Warehouse Receipts1) Without prejudice to the provisions of Article 6(6) of
this Proclamation, no more than one warehousereceipt shall be issued in respect of the same goodsalready represented by an outstanding warehousereceipt except in substitution for lost, stolen ordestroyed receipts.
2) The holder of the original receipt or his transferees
shall retain title to the goods.3) A warehouse operator over issuing warehouse
receipts shall be liable for damages caused to holdersof subsequent warehouse receipts.
4) Where it cannot be ascertained who the originalholder is, the warehouse operator responsible for theover issue shall be severally liable to all the holders.
9. Altered Warehouse Receipts
1) Where a blank in a negotiable warehouse receipt has
been filled in by a person without authority, theholder in due course of such a receipt shall have fulltitle on the goods represented by the instrument.
2) Any other unauthorized alteration leaves anywarehouse receipt enforceable against thewarehouse operator in accordance with its originalterms;
,,,. lit1iHI U-6-t.. ~:M:" ;JtLtIJ<111'C11':"9"'-"r +1 Iii]} ~.9'" Federal Negarit Gazeta - No.2 14thOctober, 2003 Page 2412
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10. Lost, Stolen or Destroyed Warehouse Receipts1) In the event of loss of, theft or injury to a negotiable
warehouse receipt, the holder shall advise thewarehouse operator in writing of the circumstanceswithin twenty four hours of becoming aware of thisfact.
2) A person claiming to be the holder of a lost, stolen ordestroyed negotiable warehouse receipt shall for-thwith apply to a court for an order for delivery of thegoods or issuance of a substitute negotiablewarehouse receipt. The court may grant the requestupon requiring the holder to post adequate security toindemnify anyone who may sustain damages as aresult of the order. Such security shall by operationof the law, lapse if no one appears to claim his rightstherefrom in two years following the court order.
3) A warehouse operator on whom due notice is servedin accordance with the provisions of Sub-Article (1)hereof who, without a court order, delivers the goodsto a person claiming under a missing negotiablewarehouse receipt is liable to any person injuredthereby.
11. Attachment
Goods kept in a warehouse for which warehouse receiptsare issued in the name of a person other than thewarehouse operator shall not be liable to attachment onaccount of debts or bankruptcy of the warehouseoperator.
12. Conflicting Claims
Where several persons claim title to or delivery of thegoods and where it is doubtful to which one of them hemay discharge his obligafions under a warehouse receipt,a warehouse operator is excused from his duty to deliverthe goods until he has a reasonable time to ascertain the:alidity of the adverse claims or until he takes a suitj>fmterpleader before a court for the purpose of ascertairyngthe one with valid title.
PART THREERights and Obligations of a Warehouse Operator
13. Duty to Deliver Goods
1) A warehouse operator shall deliver the goodsrepresented by a warehouse receipt in the mannerprpvided for under Sub-Article (2) and (3) hereof.
2) Where a warehouse receipt is negotiable, the bailortakes delivery of the goods:-(a) by satisfying the warehouse operator's lien
rights;(b) by surrendering the warehouse receipt to the
warehouse operator; and(c) by acknowledging in writing the delivery of the
goods.3) Where a warehouse receipt-is non-negotiable, the
bailor takes delivery of the goods:(a) by satisfying the warehouse operiltor's lien
rights: and(b) by acknowledging in writing the delivery of the
goods.
'IX' ~i't:!i((!: &"Y..{,.l\ ~:Jt.-} :JI~nl '/I'I'!:!{ 'I'."I-9"')'!:""J :Wtt4 'Ho. Federal Negarit Gazeta - No.2 J40.October. 2003-Page 24 \3
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4) Where a warehouse operator refuses or fails to
deliver the goods in accordance with the provisionsof this Article, he shall bear the burden of es-tablishing the existence of a lawful and justifiableexcuse for his refusal or failure. Such excuse shallconstitute anyone of the following: .(a) delivery of the goods to a person whose receipt
was rightful as against the claimant;(b) previous sale or other disposition of the goods
in lawful enforcement of a line or on awarehouse operator's lawful termination ofstorage;
(c) any other defense deemed to be lawful by a
court of law or a duly constituted arbitrationtribunal.
5) A warehouse operator who, in good faith and in full
compliance with the standard commercial practice inthe field, has received goods, issued warehousereceipts, and delivered or otherwise disposed of themin accordance with the provisions of thisProclamation shall not be held liable even though theperson from whom he received the goods had noauthority to deliver them or even though the personto whom he delivered the goods had no authority toreceive them.
14. Duty of Care and Di jigence
1) A warehouse operator shall be liable for the
preservation ofthe goods he has received for storage;2) A warehouse operator shall be liable for damages for
loss of injury to the goods caused by his failure toexercise such care as a reasonable person wouldexercise under like circumstance.
3) Any provision in a warehouse receipt limiting the
contractual liability of a warehouse operator to anamount less than the actual value of the goods storedshall be of no effect.
4) A warehouse operator shall inform the bailor in
writing whenever the goods kept with him undergochanges that seem to call for further measures.
15. Liability for Non-receipt or Misdisciption
A warehouse operator assumes fullliability to a holder indue course of a negotiable warehouse receipt notwiths-tanding that he did not receive the goods in part or inwhole or the goods or their quality or quantity do notcorrespond with the description in the receipt where it isshown that the receipt is signed by an agent or employeeof the warehouse operator having real or apparentauthority for so doing.
\16. Commingling
1) A warehouse operator may not mix goods stored in
his warehouse with other goods of like kind andquality unless he obtains an express authorizationfrom the bailor to this effect.
2) He shall separate the goods covered by each
.warehouse receipt in order to make way for easy
identification and delivery upon demand.
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Federal Negarit Gazeta - No.2 14thOctober, 2003-Page 2414
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IV.'
3) Notwithstanding the provisions of Sub-Article (1)
and (2) hereof, a warehouse operator may commin-gle fungible goods with other goods of the same
kind, quality and grade in which case holders of the
warehouse receipts for the commingled goods shallown the entire mass in common with each holderbeing entitled to claim such proportion thereof as thequantity shown by his receipt.
17, Duration of Storage Agreement
1) Upon termination of the period of storage stipulated
in the warehouse receipt, a warehouse operator may,by serving due notice on the person on whose
account the goods are held, his lawful representativeor any other person known to have an interst in thegoods, require payment of any charges due and
removal of the goods represented by the warehousereceipt.
2) Where no definite term has been fixed for storage,
the warehouse operator may avail himself of therights specified under Sub-Article (1) hereof oneyear from the date of deposit.
3) Notwithstanding the provisions of Sub-Article (1)
and (2) hereof, and in the absence of regulations or anagreement to the contrary, a warehouse operator may
sell the goods where he can show that they are about
to deteriorate or decline in value to less than theamount of his lien, subject to proper notification. The
provisions of the 1960 Civil Code of Ethiopian on
compensatory sale shall apply in such cases.4) If on account of quality or condition of the goods of
which he had no knowledge at the time of deposit,they are a hazard to persons or property, a warehouse
operator may sell them at a public or private saleupon notifing persons known to claim an interest in
the goods. He may dispose of them in any lawfulmanner and shall incur no liability by reason of such
disposition where, after a reasonable effort, he is
unable to sell them.5) A warehouse operator effecting sale in accordance
with the provisions of this Article may satisfy his lien
from the proceeds and shall hold the balance at thedisposal of the person or persons entitled to it.
18. A Warehouseman's Right of Lien<1) A warehouse may use his right of lien pursuant to
this Proclamation.2) A warehouse operator who voluntarily delivers the
goods to the bailor or who fails to deliver the goods
there being no valid reason justifying his act shall
lose his right of lien under this proclamation.
19. Enforcement of a Warehouseman's Right of Lien
1) AWarehouse operator has a specific right of claim on
the goods stored in his warehouse and may detainthem until the claims for which the lien arises aresatisfied.
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Federal Negarit Gazeta - No.2 14'"October. 2003-Page 2415
2) He may foreclose his lien by selling sufficient
amount of the stored goods by public auction or
private sale on such terms and upon such conditions
as are commercially reasonable under the circums-
tances.3) A warehouseman may, however, exercise his right
under Sub-Article (1)and(2) hereof subject to com-
pliance with the following conditions:(a) the storage and other charges for which the right
arises must be due:(b) all persons known to claim an interest in the
goods must be duly notified:(c) the noification must include a statement of the
claim, a description of the goods subject to lien,
a demand for payment within a specified period
of time and an indication that the goods will be
sold by public or private sale if the claim is not
paid within the time stated therein;
(d) the right should only be exercised with respect
to claims in relation to the goods stored and in
the possession of the warehouse operator;(e) the lien holds good only as to the goods covered
by the particular warehouse receipt out of which
the right arises or on the proceeds thereof and
not against any other property of the same bailor
in the possession of the warehouse operator.4) A person claiming a right in the goods may, at any
time before the sale, pay the amount required to
satisfy the lien and other reasonable expenses of the
warehouse operator and stop the sale. The
Warehouse operator shall in such cases retain the
goods subject to the terms of the warehouse receipt
and the relevant provisions of this Proclamation.5) A warehouse operator who, in the course of exer-
cising his right of lien. fails to comply with
requirements stated hereof is liable for damages he
causes to others.6) The relevant provisions of the law of obligations
may supplement the provisions of this Article..PART FOUR
Negotiation of Warehouse Receipts
20. Negotiation
1) A warehouse receipt - may be negotiable or non-negotiable.
2) A non-negotiable warehouse receipt shall always
carry the words "Nonnegotiable" on the face of it.
Failure to observe this rule shall have the effect of
rendering the instrument negotiable.3) Rights and obligations arising out of a non-
negotiable warehouse receipt shall only be trans-
ferred to third parties in accordance with rules
governing sale or those on ordinary assignment.
, .
1"" Kif.!ifIi IJ.&-t\ ~;J~'1- ;JtLtIJ 4I1'C If 1':"9"T r +1 Iifji '}.9". Federal Negarit Gazeta - No, 2 14'" Ooctober, 2003-Page 2416
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4) A negotiable warehouse receipt may be transferred
to third parties by endorsement and delivery. A
provision in a negotiable warehouse receipt that
limits negotiability shall be of no effect.
5) For the purpose of this Proclamation, an endor-
sement may be in blank, to bearer or to a named
person, and if the endorsement is to a named person
the receipt may again be negotiated by endorsement
in blank, to bearer or to another named person.
Subsequent negotiations may also be made in like
manner.
6) Due negotiation of a negotiable warehouse receipt
shall have the effect of conferring full title over thegoods represented by such instrument on the endor-see. The holder in due course shall enforce his rightin the instrument free from all previous claims anddefects.
21. Other rights Arising out of Negotiation of WarehouseReceipts
1) Endorsement of a warehouse receipt does not make
the endorser liable for any default by previousendorsers or by the warehouse operator.
2) The transferee of a negotiable warehouse receipt
may at any time require the transferor to supply thenecessary endorsement which, by default orotherwise, is missing from the instrument.
22. Warranties
A transferor for consideration of a negotiable warehouse
receipt shall waranty that
1) the warehouse receipt is genuine;
2) he has no knowledge of any fact that would impair
the validity and worth of the receipt; and3) his negotiation is rightful and effective with respect
to the title of the warehouse receipt and the goods it
represents.
23. Defeated Rights
1) A good faith purchaser who, in the ordinary course
of business. buys fungibles and takes delivery
thereof from a warehouse operator who is also
licensed to sell such goods takes the fungibles free of
any claim under the warehouse receipt even though
the receipt has been duly negotiated.
2) A transferee of a negotiable warehouse receipt who
has taken it for consideration shall only acquire the
title and rights of the transferor.
24. WarehouseReceipts as Security Devices
1) A holder of a negotiable warehouse receipt may
borrow money from banks or similar authorizedlending institutions by offering such receipt ascollateral.
'JR' 1fif.1!U:L 4..1vlrA '1,;Jt.'f- ,;Jt1fIJ<111'CIf 1'.y9".} r n Iun?; ,}'9'" Federal Negarit Gazeta - No.2 14thOctober, 2003-Page 2417
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2) A bank or a lending institution holding a warehouse
receipt as collateral in accordance with theprovisions of Sub Article (1) hereof may not transferthe receipt to third parties unless the borrower is indefault.
3) Where the borrower defaults to pay the debt uponmaturity, the bank or the lending institution, uponserving due notice on the borrower, may cause thegoods covered by the receipt to be sold fifteen daysafter the date of payment specified in the notice isdue.
4) Subject to the warehousemen's right oflien, the bank
or the lending institution that has caused the goods tobe sold as per the provisions of this Article shalldeduct all outstanding debts of the borrower forwhich the receipt is given as security as well as theexpenses of the sale and shall hold the balance at thedisposal of the borrower.
5) Non-compliance with the requirements hereof shall
entail the liability of the banker or the lendinginstitution to anyone sustaining damages therefrom.
6) The manner and effect of offering non-negotiable
warehouse receipts as collateral shall be governed byrules on ordinary pledge.
25. Negotiation after Goods Parted with
Where a person, having sold or pledged goods that are ina warehouse for which a negotiable warehouse receipt isissued or having sold or pledged the negotiable receiptitself, continues to be in possession of the receipt,subsequent negotiations by that person to a third party ingood faith for consideration and without notice of theprevious sale or pledge shall be valid.
PARTFIVEREGULA TION OF WAREHOUSING
26. Application for Registration
1) A share company, a private limited company or a
public enterprise complying with the requirementsof this Proclamation, Commercial Registration andBusiness Licensing Proclamation No. 67/97 andFederal Government Commercial Registration andbusiness Licensing Council of Ministers RegulationNo. 13/1977 may apply to the Ministry or to aregulatory organ delegated for this purpose by theMinistry to be registered in commercial register aswarehouse operator.
2) Without limitation to the generalities of Sub Article (1)
hereof, the applicant shall, in particular:-(a) be in sound financial standing with a minimum
capital of Birr 1,000,000.00;(b) own or lease, with a minimum acceptable lease
period of twelve months and an option to renewthe lease for another period of twelve months, awarehouse of a permanent structure with thenecessary equipment that enable it to properlyrecei ve, grade, store, clean and outload thegoods that may be tendered for storage; and
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Federal Negarit Gazeta - No.2 14thOctober, 2003-Page 2418
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(c) employ qualified personnel with the required
training and experience regarding the handling,
grading and proper storage of goods for which
the warehouse is sought to be licensed.
3) The Ministry shall dtermine by directives the criteria
which cooperative societies shall meet to register and
operate a warehousing business.
27. Licensing
The Ministry or its designate shall:-
1) issue business licenses for the conduct of the
business of warehousing to the entitues specified
under Article 26 of this Proclamation pursuant to the
commercial Registration and Business Licensing
procamation No. 67/1997, Federal Government
commercial Registration and Business Licensing
council of Ministers Regulations No. 13/1997 and
pursuant to this Proclamation;
2) classify warehouses in terms of their capacity or the
specific services for which they are licensed;
3) issue to any person, upon presentation of satisfactory
proof of competence, licenses to inspect, classify,
grade, weigh or sample agricultural products to be
stored in a warehouse
4) without prejudice to the provision of Sub Article (3)
of this Article any person engaged in the grading of
agricultural products as provided for in this
Proclamation shall obtain the delegation of the
Ethiopian Quality and Standards Authority to do the
grading of the same.
28. Publicity
1) A warehouse operator shall, upon due registration,
cause to be published in a newspaper of national
circulation information with respect to its head
office. Location of each warehouse under his con-
trol, the type of goods its warehouses are authorized
to accept, its financial standing as well as any other
relevant matter which he deems is appropriate to be
disclosed. Such publicity shall be made no later than
thirty days following its registration.
2) A registred warehouse operator shall also permanen-
tly display on conspicuous places in all its premises a
statement showing that it is licensed in accordance
with the provisions of this Proclamation.
29. Maintaining Records
1) A warehouse operator shall keep complete and
correct records of all goods stored in his warehouse
and withdrawn therefrom in a licked fire resistant
container.
2) He shall in particular keep records of:
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(a) all warehouse receipts and their duplicates
issued by him as well as the names andaddresses of persons to whom the receipts areissued:
(b) all warehouse receipts returned to and cancelled
by him:(c) the names and addresses of persons to whom
delivery of goods was made upon sUITendering
warehouse receipts;(d) all notices of negotiation, including pledge, of
warehouse receipts issued by him with thenames and addresses of the transferees thereto:and
(e) a daily position record (DPR) evidencing all
goods held in the warehouse and movement ofgoods into and out of the warehouse.
3) All warehouse receipts against sUITender of which
goods covering them have been delivered either to
the bailor, his transferee, a pledgee or any otherperson with a valid title shall forthwith be cancelled.
4) It shall be incumbent upon warehouse operators
registered under this Proclamation to maintainproper books of accounts in accordance with lawsgoverning the same and to have their accounts duly
audited at the end of every Ethiopian financial year.
30. Publication of Tariffs
1) A warehouse operator shall have his storage charges
published in a newspaper of national circulation nolater than thirty days following the commencementof every Ethiopian financial year. The publishedtariff shall be permanently displayed on conspicuousplaces in each warehouse and shall, among otherthings, include levies with respect to receiving,storing and discharging of goods as well as thecharges for issuance of warehouse receipts.
2) A warehouse operator may not charge a tariff in
excess of those that he has caused to be published.3) Notwithstanding the provisions of Sub Articles (1)
and (2) hereof, a warehouse operator may cause newwarehouse charges to be 'published whenever cir-cumstances waITant provided, however, that outstan-ding warehouse receipts shall be charged at the rateprevalent upon issue.
31. Bonding and Insurance
1) Every warehouse operator shall, as a condition for
receiving or renewing a license, execute and file with
the Minstry or with a regulatory organ delegated forthis purpose by the Ministry a bond or an under-taking sufficient to secure performance of hisobligations towards his customers. The type andamount of said bond or undertaking shall be deter-mined by a directive to be issued by the Ministry orits designate.
2) A warehouse operator shall in addition insure all
goods for which warehouse receipts are issued inaccordance with the provisions of this Proclamation.
'IK' !{if.1iY.?! JuY.,t.A ~;Jt.} .?lLfIJ <I!'I'C g'l':"9"')' r "") nB~ji'}.9".
//
Federal Negarit Gazeta - No.2 14th October, 2003-Page 2420
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32. Non Discriminations
1) Where a person offers to a warehouse operator goods
that are of the kind customarily stored therein, the
latter shall take delivery of the goods thereof
provided the goods tendered are in a suitable
condition and provided further that there is space
available.2) A warehouse operator registered in accordance with
the provisions or this Proclamation shall not make
any discrimination with respect to availability of
facilities or as to tariffs between persons availing or
desiring to avail themselves of his services.
33. Establishment of Standards
1) The Ministry, having due regard to other appropriate
laws pertaining to establishment and control of
national standards and in close consultation with
relevant organs of public administration, may es-
tablish or may cause to be established standards for
agricultural products that may be stored in registered
warehouse.2) The Ministry may likewise set or cause to be set
criteria of professional competence for certification
of persons engaged in the business of inspecting,classifying, grading. Weighing and sampling of
agricultural products to be stored in a registered
warehouse.
34. Inspection of Warehouses
1) The Ministry or its designate may inspect or cause to
be inspected any warehouse licensed under this
Proclamation. He shall in particular investigate the
manner of receiving storing handling classifying
according to grade and other wise, weighing and
grading of agricultural products.2) The Ministry or its designate may examine or cause
to be examined all books of accounts records and
papers of a warehouse operator.3) The ministry or its designate may investigate or
cause to be investigated the activities of persons
licensed as inspectors, classifiers, graders, weighers
or samplers of agricultural products.
35. Licensing and Inspection Fees
1) The Ministry or its designate may charge reasonable
fees for issuance, upgrading and renewal of licenses
to warehouse operators, inspectors, classifiers.grader, weighers or samplers of agricultural products
pursuant to the Federal Government Commercial
Registration and Business Licensing Council of
Ministers Regulation No. 13/1997.2) The Ministry may likewise assess, charge and collect
fees for each examination or' inspection of a
warehouse where such is made pursuant to an
application of warehouse operator.
.,R' !!it!!i~li IJ.6.A ~;Jt..,. ;JfLffJ~'I'C !{ 'I':"9".} r +1 Iiii)} 'HI". Federal Negarit Gazeta - No.2 14th October, 2003-Page 2421
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36. Inspection and Grading of Fungibles
A warehouse operator accepting fungibles to be stored
in his warehouse shall cause the fungibles to be
inspected and graded by a person duly licensed for this
purpose prior to mixing them with similar products of
other bailors.
37. Renewal of Licenses
The Ministry of its designate shall renew licenses issued
to warehouse operators, inspectors, classifiers, graders,
weighers or samplers of agricultural products pursuant to
this proclamation and the Commercial Registration and
Business Licensing proclamation No. 67/1997 and The
Federal Government Commercial Registration and
Business Licensing Council of Ministers Regulations
No. 13/1997.
38. Suspension and Revocation of Licenses
1) The Ministry or a regulatory organ delegated by the
Ministry for this purpose may suspend or revoke the
license of a warehouse operator where:-
(a) it is shown that such warehouse operator has
failed to maintain the minimum capital
requirement specified in this Proclamation,
(b) the warehouse operator is found to have parted
in part or in whole with control of some or all
of his warehouses;
(c) the warehousing firm is in the process of
dissolution and winding up or there are strong
indications that such dissolution and winding
up is likely to take place; or
(d) the warehouse operator is reasonably suspec-
ted of having become incompetent or in-
capacitated to conduct his business; or
(e) the warehouse operator is found to have
violated or has in any manner failed to comply
with the conditions specified in the provisions
of this Proclamation or in regulations to be
issued in accordance with this Proclamation.
2) For the purpose of ensuring proper protection of
interests of bailers, holders in due course, pledges of
warehouse receipts or those of other person with
valid claims a ware:house operator whose license is
suspended or revoked as per the provisions of Sub
Article (1) hereof shall immediately cede control of
all his warehouses amd the goods stored therein to the
Ministry or to an org~andelegated for this purpose by
the Ministry. Pending final settlement of the case, the
latter shall only perform acts of management.
"K' !{jQi):~!{ ~Yot.A ~;Jt.} :J'LtlJ "I'I'C !{ 'I':"9"'} r""} I!!tI1; '}.9".
e.
Federal Negarit Gazeta - No.2 14th October, 2003-Page 2422
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3) The Ministry or a regulatory organ delegated by the
Ministry for this purpose may suspend or revoke a
license issued to an inspector, classifier, grader,weigher or sampler of agricultural products where it
is shown that such person has ceased to practice hisprofession, has materially violated professional stan-
dards of behavior, has been engaged in conductunbecoming of his status as a professional, or has inany manner become incompetent or incapacitated toperform his duties.
4) Prior to permanently revoking the license of a
warehouse operator, an inspector, classifier, grader,weigher or sampler of agricultural products,however, the Ministry or its designate shall furnish
the former with a written statement specifying thecharge made against him and shall grant hi\reasonable time to answer the charge or to fill in aprotest against the charge.
5) Where the decision to revoke the license is final, the
Ministry or its designate shall release to the public,through mass media, information with respect to therevocation and the grounds thereon.
PART SIXMISCELLANEOUS PROVISIONS
39. Tax Holiday and Other Investment Benefits
Notwithstanding any other provision to the contrary,
domestic and foreign investors engaged in the businessof providing warehousing services for agriculturalproducts may avail themselves of the benefits due toinvestors engaged'in pioneer investment activities inaccordance with the relevant provisions of the Invest-ment Proclamation.
40. Electronic warehouse Receipts
A warehouse receipt may be created by means ofelectronic records and may be issued to a bailer or histransferee by a system provider appointed by theMinistry or its designate in line with procedures to beestablished for this purpose.
41. Model Warehouse Receipts
Subject to the provisions of Article 6 of thisProclamation, the Ministry or its designate may from
time to time draw up model warehouse receipts to beemployed by warehouse operators.
42. Arbitration
Any and all disputes between parties to a warehouse
receipt or out of negotiation of warehouse receipts maybe agreed to be submitted to a sole arbitrator or a panelof three arbitrators the award of whom shall be final.
43. Penalty Provisions
Without prejudice to the administrative measures to be
taken by the Ministry, whosoever violates theprovisions of this proclamation shall be punished asprovided in other laws.
'IX' ~~:!!~?!t tuYuMA '1;J{.-} ;JnflJ '/!'J'C ~ 'J'q.?".} !: ""} :H!r:tt; '}.?". Federal Negarit Gazeta - No.2 14th October. 2003-Page 2423
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44. Delegation of Authority
The Ministry may delegate its powers and duties under
this Proclamation in part or in whole to another govern-
ment agency to stakeholders-controlled accreditation andregulatory organs to be set up to ensure compliance with
the provisions of this Proclamation.
45. Power to Issue Regulations~t;. Y."}-n fDIJm-llJ-)'P'AllJ"}
The Council of Ministers may issue regulation to ensurefDIJ.~1l-h~1' SJOtic(1.-). t\'lU htp~ h&.KX9° fDIJ.JJll&.A proper implementation of this Proclamation.1m-"} Y."}-n t\D?m-fJj-)' f-,1./tA ::
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46. Repeale{i Laws
1) Article 2806 to 2824 inclusive of the 1960 CivilCode of Ethiopia shall be replaced by thisProclamation and are hereby repealed.
2) No. law regulations or directives shall have force andeffect in matters covered under this Proclamation sofar as it is inconsistent with the provisions of thisProclamation.
47. Effective Date
This Proclamation shall come into force as of 14dldayofOctober, 2003,Done at Addis Ababa this 14thday of October, 2003.
GIRMA WOLDE GIORGISPRESIDENT OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA