The Warehouse Receipt System was established in Uganda in 2006 by the Ministry of Trade, Industry and Cooperatives.
It is governed and regulated through the Warehouse Receipt System Act of 2006 (WRS Act, 2006) and regulations there of 2007.
Section 3 of the WRS Act, 2006 provides for the establishment of the Uganda Warehouse Receipt System Authority, whereas sec. 7 establishes the Board of Directors of the Authority.
It is defined as a system where Commodities can be used as security/collateral for financing (Inventory Credit).
The issuer of the Warehouse Receipt will certify the deposit of commodities, hold the commodity in safe custody until the depositor or a new ascertained buyer claims the goods.
This is possible where commodities are deposited in regularly inspected, certified, licensed and regulated storage facilities.
A Warehouse Receipt (WR) is a document of Economic Value (representing the monetary worthiness) and also a document of Title (Proof of Ownership) issued by the Warehouse Operator/ Warehouse Keeper or Collateral Manager, as evidence that a specified commodity of stated Quantity and Quality (Grades) has been deposited at a particular certified warehouse by a named depositor.