OVERVIEW

MODEL LAW ON WAREHOUSE RECEIPTS

In 2019, the Secretariat of the United Nations Commission on International Trade Law (UNCITRAL) invited the UNIDROIT Secretariat to consider joint legislative work on warehouse receipts, with particular focus on the possible drafting of a Model Law. Several reasons motivated this initiative, including the growing importance of warehouse receipts in supply-chain and value-chain financing; constraints in access to credit limiting economic growth, particularly in developing countries and emerging markets; a lack of norms governing warehouse receipts in many jurisdictions; and the need to harmonise existing standards on warehouse receipts promoted by international organisations.

On 26 March 2020, UNCITRAL and UNIDROIT co-organised a Webinar on a Model Law on Warehouse Receipt Project to discuss the proposal of developing such an international instrument. The Webinar gathered input from a multidisciplinary group of experts from various geographic regions representing academia, stakeholders, institutional actors, and international organisations active in the field. The conclusions and recommendations of the Webinar confirmed the desirability and potential benefits of a Model Law that would be endorsed at the international level.

At its 99th session in April/May 2020, the UNIDROIT Governing Council approved the project for the 2020-2022 Triennial Work Programme as a high-priority project (UNIDROIT C.D. (9) A.8), followed by UNCITRAL’s Commission at its 53rd session in September 2020 (UN Doc. A/75/17).

The project consisted of two phases. First, UNIDROIT led the joint preparatory work through a UNIDROIT Working Group, developing a first comprehensive draft for a Model Law on Warehouse Receipts over the period 2020-2023. Once completed, the draft Model Law was submitted for intergovernmental negotiations through UNCITRAL Working Group I in 2023.

The Model Law was developed in a harmonised manner with UNCITRAL’s related existing instruments, in particular the UNCITRAL Model Law on Electronic Transferable Records (2017), the UNCITRAL Model Law on Secured Transactions (2016) and the UNCITRAL Legislative Guide on Secured Transactions (2007).