Commercial Warehouses (Entrusted Storage) and Private Warehouses
Warehouses are clearly classified into "commercial warehouses" that store other people's goods for a fee, and "private warehouses" that handle only the company's own goods, depending on their usage and whether the law (Warehousing Business Act) applies.
Basic Overview of Commercial Warehouses and Private Warehouses
Commercial Warehouses (Entrusted Storage)
A warehouse intended for a warehousing business operator (another party) to store goods by receiving compensation (storage fees) from a customer (shipper). Based on the Warehousing Business Act, it is necessary to receive "registration" from the Minister of Land, Infrastructure, Transport and Tourism. It must meet strict building and equipment standards such as fire prevention, load bearing, and moisture/waterproofing.
Private Warehouses
A warehouse used by the company itself to store its own materials, own products, and commercial inventory. It cannot entrustedly store other people's goods for compensation, and falls outside the scope of the Warehousing Business Act (only general laws and regulations such as the Building Standards Act and the Fire Service Act apply).
Main Comparison between Commercial Warehouses and Private Warehouses
Practical Points to Note and Penalties
⚠️ Legal risks of unregistered operations (white warehouses):
The act of keeping another company's goods and charging a storage fee in a building built as a private warehouse just because "there is empty space" constitutes an unregistered operation (white warehouse) and is subject to violations of the Warehousing Business Act (imprisonment for up to 1 year or a fine of up to 1 million yen).When conducting a logistics business that stores other companies' freight, it is absolutely necessary to meet the registration requirements for a commercial warehouse.