CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA

National People's Congress
Promulgation Date: 1999.3.15
Effective Date: 1999.10.1

CHAPTER 20 CONTRACTS FOR WAREHOUSING

Article 381 A warehousing contract refers to a contract whereby the safekeeping party keeps in store the goods handed over by the storing party, while the storing party pays the warehousing fee.

Article 382 A warehousing contract comes into effect at the time of its establishment.

Article 383 Where inflammable, explosive, poisonous, corrosive, radioactive and other dangerous or perishable articles are to be kept in store, the storing party shall indicate the character of the goods and provide relevant documents and materials thereof. Where a storing party violates the provisions of the preceding paragraph, the safekeeping party may refuse to receive the goods, or may take appropriate measures to avoid losses. The cost consequently incurred shall be borne by the storing party. The safekeeping party shall have appropriate safekeeping facilities for the storage of inflammable, explosive, poisonous, corrosive, radioactive and other dangerous articles.

Article 384 The safekeeping party shall inspect, before letting in, the warehousing goods in conformity with the terms of the contract. A safekeeping party discovering in the inspection that the goods are not in conformity with the terms of the contract shall, inform the storing party of the case promptly. After the inspection and acceptance by the safekeeping party, the safekeeping party shall be liable for damages if it is discovered that the category, quantity or quality of the warehousing goods are not in conformity with the terms of the contract.

Article 385 Upon handing over the goods by the storing party, the safekeeping party shall issue a warehouse voucher.

Article 386 The safekeeping party shall sign on the warehouse voucher or affix a seal on it. A warehouse voucher shall contain the following items: (1) title or name and domicile of the storing party; (2) category, quantity, quality, package, number of pieces and marks of the warehousing goods; (3) standards of spoilage of the warehousing goods; (4) place of storage; (5) time period of storage; (6) warehousing fee; (7) where the warehousing goods have been insured, the amount and time period of the insurance and the title of the insurance company; and (8) name of the person who issues the warehouse voucher, the place and the date of issuance.

Article 387 A warehouse voucher is the certificate for claiming the warehousing goods. The right to claim the warehousing goods may be transferred when the warehouse voucher is endorsed by the storing party or the person who holds the warehouse voucher, and signed or affixed with a seal by the safekeeping party.

Article 388 At the request of the storing party or the person who holds the warehouse voucher, the safekeeping party shall permit the person to check the warehousing goods or take samples.

Article 389 In the event that the safekeeping party discovers that the warehousing goods are deteriorated or otherwise damaged, the said party shall inform the storing party or the holder of the warehouse voucher of the case promptly.

Article 390 In the event that the safekeeping party discovers that the letting in warehousing goods are deteriorated or otherwise damaged, thus endangering the safety and the normal storage of other warehousing goods, the said party shall notify and urge the storing party or the holder of the warehouse voucher to make necessary disposal. In case of emergency, the safekeeping party may make the necessary disposal, but shall inform the storing party or the holder of the warehouse voucher of the case promptly afterwards.

Article 391 Where there is no agreement in the contract between the parties as to the time period of the storage or such agreement is unclear, the storing party or the person who holds the warehouse voucher may claim and get back the warehousing goods at any time, the safekeeping party may also at any time request the storing party to claim the warehousing goods, provided that a time period necessary for preparation shall be given.

Article 392 When the storage time period expires, the storing party or the holder of the warehouse voucher shall claim and get back the warehousing goods. Where the storing party or the holder of the warehouse voucher fails to claim the goods on time, additional warehouse fee shall be paid. Where the goods are claimed before the time period expires, the warehouse storage fee shall not be reduced.

Article 393 Where the storing party or the holder of the warehouse voucher does not claim the warehoused goods when the time period expires, the safekeeping party may urge the holder to claim the goods within a reasonable time period. After this additional time period expires, the safekeeping party may have the goods deposited.

Article 394 If, during the time period of storage, the warehousing goods are damaged, destroyed or lost due to improper storage by the safekeeping party, the safekeeping party shall be liable for damages. Where the warehousing goods are perished or damaged due to inconformity of the character of the warehousing goods or of the packing with the terms of the contract, or the fact that the goods exceed the valid storage period, the safekeeping party shall not be liable.

Article 395 Matters not addressed in this Chapter shall apply, the relevant provisions governing storage contracts.

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