General Bonded Warehouse Act (Act 3893)

The business of warehousing covers all types of goods, commodities and merchandise to be stored and deposited. Rice, corn, sugar and palay are covered by this law. Structures used for storage, including a camalig, are also covered by this law. The stocks in the warehouse belong to their owners and not to the warehouse owner. If the warehouse owner accepts stocks from friends and family, these don't need to be bonded, but stocks from clients have to be bonded.

The obligations of a warehouse owner are the following:

1.) A licese from the DTI

2.) A bond equal to 33 and 1/3% of the market value of the maximum quantity of goods to be received for the protection of the depositors

3.) There must be no discrimination and the warehouse must be open to the public

4.) The goods must be insured against fire

5.) In case there is damage to the goods because the warehouseman accepted them even though the warehouse was already filled to capacity, he is liable for double the amount of the market value of the goods

The law won't apply if the owner merely rents space to a certain group of persons because the law covers warehouses that accept goods for milling, storage and commingling with the obligation to return the same quantity or to pay their value.