Warehouse Audit Program Renewals

TO WAREHOUSEMEN AND DEALERS:
PLEASE read the following carefully in order to avoid monetary penalties and delays in the licensing process.

Application

Rates and Charges

Request for Negotiable Warehouse Receipts

Request for Non-Negotiable Warehouse Receipts

Successors Agreement

Bond of Grain Dealer/Warehouseman

Certificate of Issuance of Insurance

According to the Warehouse Act, 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 WSDA. 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 agency 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.This penalty shall not apply if the applicant furnishes an affidavit certifying that he or she has not acted as a warehouseman and/or dealer since July 1.t covered and are not aerated must be picked up by October 30.

Application: Both pages of the application form pertain 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.
 

 EFFECTIVE JUNE 7, 2012:  The license fee schedule 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.

Warehouse Receipts:  All orders for warehouse receipts will be printed on "NCR" paper (No Carbon Required) and on continuous forms used with computers.  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.  Warehouse receipts that are compatible with laser printers are available by special order.  Please contact our office as prices vary.

Non-Negotiable Warehouse Receipts:  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 warehouse receipts must be held for at least three years and can then be destroyed only by a State Warehouse Examiner. 

Tariff:  The Act 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 enclosed forms or use your letterhead. Please submit forms 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.

Insurance:  The Act 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 if the renewal is not received by the expiration date.  

Financial Statement: The department must receive annually, as close to the end of your fiscal year as practical, but in no case later than four** months, 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.

            (3)        Statement of changes in financial position.

            (4)        Footnotes or schedule disclosure of:

                        (a)        Total bushels received annually by commodity.

                        (b)        Amount of each commodity in storage at the end of the year.

                        (c)        Amount of each commodity held for depositors. 

 

Note:  Item 2 above asks for the amount of sales resulting from purchases of commodities covered under the Act from producers. If this is not separated in the statement, your bond will be computed on total purchases.

** Companies which have a UGRSA 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 30-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.

Bond:  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 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.

*Special Note:    

Grain dealers who purchase less than $100,000 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.

**Additional Note:          

Ground Piles: 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.

UGRSA Warehouse Operators must also receive prior approval from CCC for outside emergency and/or temporary outside storage. CCC emergency outside storage must be picked up by October 30. CCC temporary must be covered, aerated, piled on a concrete or asphalt slab, or approved surface, and have a rigid sidewall.

TO DEALERS:

PLEASE read the following carefully in order 
to avoid monetary penalties and delays in the licensing process. 

Application

Rates and Charges

Request for Negotiable Warehouse Receipts

Request for Non-Negotiable Warehouse Receipts

Successors Agreement

Bond of Grain Dealer/Warehouseman

Certificate of Issuance  

According to the Warehouse Act, it is unlawful for any person to operate as a dealer in this State without first having obtained a license from the department. If you are licensing as a dealer only you need only to complete the application and submit a financial statement that has been audited or reviewed by a certified or licensed public accountant. If the application is not received prior to June 30th, a penalty of $50 for the 1st week and $100 for each succeeding week shall be assessed and added to the license fee. This penalty shall not apply if the applicant furnishes an affidavit certifying that they have not acted as a dealer since July l. 

Application: The front page pertains to both warehousemen and dealers. Be sure to check appropriate boxes and list your company's financial year-end. 

Dealer location information is on the back side at the bottom of the application. You need to list the location and address of each office in which you will have a buyer contacting Washington producers. This is for information only and does not affect your license fee. The license fee is $1,750 for a dealer only license, unless the grain dealer is exempted from bonding under RCW 22.09.060, in which case the fee shall be $500*. Be sure the application is completely filled out and signed. 

Financial Statement: The department must receive annually, as close to the end of your fiscal year as practical, but in no case later than four months, a financial statement, that has been audited or reviewed, by a certified or licensed public accountant which includes: 

(1) Balance sheet. 

(2) Income statement which separates annual gross sales 
of commodities purchased from producers covered under 
the Act from other sales. 

(3) Statement of changes in financial position. 

Note: Item 2 above asks for the amount of sales resulting from purchases of commodities covered under the Act from producers. If this amount is not separated in the statement, your bond will be computed on total purchases. 

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: Bonds are continuous and are based on 6 percent of commodities purchased from producers. Upon receipt of your financial statement, the department will compute the amount of bond required and notify you if there is a change. In lieu of bond, the department will accept a cash deposits, an assignment of life insurance, or an irrevocable letter of credit. 

*Special Note: Grain dealers who purchase less than $100,000 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. 

If you have any questions, or need assistance, please call 509/533-2488.