Warehouse Audit Program FAQs

According to RCW 22.09.030, it is unlawful for any person to operate a warehouse or act as a dealer in this State without first having obtained a license from the department. Warehousemen licensed under the U.S. Warehouse Act are exempt from the warehouse license requirements but not from the dealer license. If you are licensing as a dealer only you need only to complete the application and submit a financial statement.

If your application is not received by the department prior to June 30, a penalty of $50 for the first week and $100 for each succeeding week shall be assessed and added to the license fee per WAC 16-237-180 and -185. This penalty shall not apply if the applicant furnishes an affidavit certifying that he has not acted as a warehouseman and/or dealer since July 1.

Both pages of the application form pertains to both warehousemen and dealers. Be sure to check appropriate boxes and provide the fiscal year end for your company. The top portion of the back page is for Warehousemen. Please list storage capacities, including outside storage, taken from your latest bin charts. Warehouses at a station not physically connected require separate license fees. If you have added or deleted from your last year's license, please indicate changes. Dealer Location information is on the bottom of the back page. We need the location and address of each office in which you will have a buyer contacting producers. This is for information only and does not affect your license fee. Be sure the Application is completely filled out and signed.

The license fee schedule, per RCW 22.09.050, is as follows:

• $1,900 for each terminal warehouse.
• $1,500 for each sub-terminal warehouse.
• $700 for each country warehouse.
• $1,750 for a dealer license.
• $500 for an exempt grain dealer.

All orders for warehouse receipts will be printed on “NCR” paper (No Carbon Required) and on continuous forms used with computers. 

Negotiable warehouse receipts will be $10 for a set of 50 receipts. Please enclose a cancelled warehouse receipt (not original) containing the information you want printed thereon. No orders will be accepted unless a sample receipt is attached. Exceptions will be made for a new licensee.

Negotiable warehouse receipts that are compatible with laser printers are available by special order. Please contact our office as prices vary.

Cancelled negotiablewarehouse receipts must be held for at least three years and can then be destroyed only by a State Warehouse Examiner.

All non-negotiable warehouse receipts will be printed on “NCR” paper and on continuous forms used with computers.

Non-negotiable receipts will be $10 for a set of 50 receipts.

Cancelled non-negotiablewarehouse receipts must be held for at least three years and can then be destroyed only by a State Warehouse Examiner.

WAC 16-237-155 requires that you file with the department and post in a conspicuous place at your warehouse, your charges for receiving, storage, load-out, put-through and reconditioning. Charges filed must be assessed and applied equally to all depositors. You may complete the Washington Bonded Warehouse Rates & Charges form or use your letterhead. Please submit form or letterhead in duplicate. When approved, one copy will be returned with your license.

Other charges, such as cleaning and drying, are not required to be on file but must be posted conspicuously for depositors and applied uniformly.

RCW 22.09.110 requires that the department receive evidence of insurance through the licensing period. We will send out reminders 30 days prior to expiration of your insurance and will automatically suspend your warehouse license per RCW 22.09.120 if the renewal is not received by the expiration date.

According to WAC 16-237-040, the department must receive annually, as close to the end of your fiscal year as practical, but in no case later than four months (except companies which have a UGRSA with CCC—see next question), a financial statement, which has been audited or reviewed by a certified or licensed public accountant which includes: 

1. Balance sheet.
2. Income statement which includes annual gross sales of covered commodities purchased from producers. Note: If the amount of sales resulting from purchases of commodities covered under the Act from producers is not separated in the statement, your bond will be computed on total purchases.
3. Statement of changes in financial position.
4. Footnotes or schedule disclosure of:
   1. Total bushels received annually by commodity.
   2. Amount of each commodity in storage at the end of the year.
   3. Amount of each commodity held for depositors.

Companies which have a Uniform Grain and Rice Storage Agreement with Commodity Credit Corporation must submit a copy of their financial statement to the Commodity Credit Corporation Kansas City Office within three months after their fiscal year end.A thirty-day extension may be granted by CCC. Companies not presently licensed under this Act will need to submit their latest available statement, even if it does not meet the above criteria, before a license can be issued.

Do not hold up your application for your financial statement but indicate the approximate date we should be receiving it.

Bonds are continuous and are based on $0.18 per bushel of licensed capacity or 6 percent of commodities purchased from producers, whichever is greater. Upon receipt of your financial statement, the department will compute the amount of bond required per WAC 16-237-025 and notify you if there is a change.

If you have any question, or need assistance, feel free to call our office at (509) 533-2488.

Grain dealers who purchase less than one hundred thousand dollars annually from producers and operate in accordance with the provisions of WAC 16-237-025(3) may petition the director for exemption from the bond requirements.

Licensed ground piles must be properly landscaped to provide adequate drainage. Ground piles that are not covered and are not aerated must be picked up by October 30^th.

Uniform Grain and Rice Storage Agreement (UGRSA) Warehouse Operators must also receive prior approval from Commodity Credit Corporation (CCC) for outside emergency and/or temporary outside storage. CCC emergency outside storage must be picked up by October 30^th. CCC temporary must be covered, aerated, piled on a concrete or asphalt slab, or approved surface, and have a rigid sidewall.