Generally, a warehouse receipt is considered a document of title and this warehouse receipt should be

issued by warehouseman. In my understanding, warehouse receipts may either be negotiable or non-

negotiable. It is more common for warehouse receipts to be issued in negotiable form, allowing for the
transfer of ownership of the commodity in question without actually having to deliver the goods
physically. As a consequence, negotiable warehouse receipts can be used as collateral for loans and
other forms of trade finance. Non-negotiable warehouse receipts, on the other hand, allow delivery of
commodities only to one pre-approved party, and must therefore be endorsed by that party upon
transfer of the goods. Warehouse receipts are important because they serve as proof that the
commodity is in the warehouse and that the proper documentation has been verified. Without the
receipts, no delivery of stored commodities can be made and warehouse receipts are used to settle
futures contracts. Also, warehouse receipts benefit exporters and importers, because goods never have
to be physically moved from one location to another to prove their existence. Rather, the warehouse
receipt means ownership of the goods simply changes hands.