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For Latest Circulars on Demurrage and Wharfage Click

www.indianrailways.gov.in

(Railway board Directorates -> Traffic Commercial -> Freight Rate Circulars)

Procedure for waiver of Demurrage/Wharfage

The circumstances, which lead to accrual of demurrage/wharfage charges, can be broadly grouped in three categories as under:

·Reasons within the control of  the consignor/consignee.

·Reasons beyond the control of consignor/consignee like labour strike, transportation strike, general bandhs, agitations, riots, curfew, fire, explosion, heavy rains or other abnormal/unforeseen circumstances.

·Act of God, act of War and act of public enemies

In case the consignor/consignee feels that demurrage/wharfage was due to reasons beyond his control he could apply for waiver giving all relevant details with documentary evidence wherever necessary.

First application for waiver of demurrage or wharfage should be submitted to the Station Manager/Goods Supervisor within 10(ten) days from the date upto which these charges had accrued.  

In case of wharfage, the consignor/consignee should first remove the consignment from the railway premises, deposit the amount of wharfage charges and submit the original proof of such payment along with his application while preferring for waiver at first instance itself

The concerned Station Manager/Chief Goods Supervisor will forward the application of waiver of demurrage or wharfage to the Divisional Officer together with the factual position and remarks within 3(three) days of the receipt of the application.  

In case of large sidings, like those of power houses, steel plants etc., the time limit for preferring the first application for waiver of demurrage charge will be the next month implying that application for waiver of demurrage charges accrued in one month should be submitted latest within the next month.

The delay beyond 10 days/next month period as mentioned above can be condoned only with the personal approval of the Divisional Railway Manager/Chief Commercial Manager (coordinating HOD) depending upon whether the powers to deal with the case lies at Divisional or Zonal level and after having ascertained that the reasons for the delay given in the application are satisfactory.

Application for condonation of delay in preferring an appeal for waiver of demurrage, however, shall be entertained only after the demurrage charges have been paid in full and the application is supported with proof of such payment.

Some of the important Circulars pertaining to Wharfage / demurrage are reproduced below:


Rates Circular No. 39 of 2004

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA) RAILWAY BOARD

No.TC-I/2004/201/9              New Delhi, Dt.   .10.2004

General Managers(Commercial)  General Managers(Operating)         
All Indian Railways.

Sub:    Rules regarding waiver of demurrage/wharfage charges.


Please refer to Board’s letter of even number dated 20.7.2004 regarding advance intimation for arrival/placement of rakes-accrual and waiver of demurrage charges. It had been inter aliamentioned that the provisions contained in Board’s letter No.TC-I/201/72/27 dated 23.4.86 are also under review and the same will be advised in due course.  

Ministry of Railways have reviewed previous instructions regarding waiver of demurrage/wharfage charges including Board’s letter No.TC-I/201/72/27 dated 23.4.86. In supersession of Board’s earlier instructions on the subject of waiver/refund of demurrage/wharfage charges, it has been decided that the guidelines as mentioned in this letter shall be followed while dealing with the cases of waiver/refund of demurrage/wharfage charges:  

1.0

Power of officers to waive Demurrage or wharfage charges

Sr

Desgn of officer

Max amt of Demurrage per wagon which can be considered by an officer

Max amount of wharfage per consignment which can be considered by an officer

1

GM

Full powers

Full powers

2

CCM (Co-ordinating HOD in Commercial Department)

Rs.1,00,000/-

Rs.1,00,000/-

3

DRM

Rs.25,000/-

Rs.25,000/-

4

CTM/Sr. DCM/ DCM working as Branch Officer

Rs.6,000/-

Rs.6,000/-

5

DCM/DTM/Area Officer in senior scale

Rs.600/-

Rs.1,200/-

6

ACM/ATM/Area Officer in junior scale 

Rs.300/-

Rs.300/-

1.2

Where Demurrage cases are being handled by Officers of Operating Department,CCM/Sr.DCM etc. will mean COM/Sr.DOM etc.

1.3

The cases for waiver should not be dealt by an officer below the level of officer competent to deal with the case as per the schedule of powers given in the above table.

1.4

Prior Finance concurrence will be required for waiver of Demurrage/Wharfage charges above Rs.25,000/- per wagon/per consignment respectively.  Cases submitted to General Manager should be routed through the Co-ordinating HOD of the Commercial Department and FA&CAO of the Zonal Railways.  

2.0

Waiver

2.1

Due care should be taken in preparation of the demurrage/wharfage bills at the first instance to obviate recasting of bills subsequently on representation by the customer or otherwise.  

2.2

In case the consignor/consignee feels that demurrage/wharfage was due to reasons beyond his control he could apply for waiver giving all relevant details with documentary evidence wherever necessary.  

2.3

First application for waiver of demurrage or wharfage should be submitted to the Station Manager/Goods Supervisor within 10(ten) days from the date upto which these charges had accrued.  

2.4

In case of wharfage, the consignor/consignee should first remove the consignment from the railway premises, deposit the amount of wharfage charges and submit the original proof of such payment along with his application while preferring for waiver at first instance itself.  

2.5

The concerned Station Manager/Chief Goods Supervisor will forward the application of waiver of demurrage or wharfage to the Divisional Officer together with the factual position and remarks within 3(three) days of the receipt of the application.  

2.6

In case of large sidings, like those of power houses, steel plants etc., the time limit for preferring the  first application for waiver of demurrage charge will be the next month implying that application for waiver of demurrage charges accrued in one month should be submitted latest within the next month.  

2.7

The delay beyond 10 days/next month period as mentioned above can be condoned only with the personal approval of the Divisional Railway Manager/Chief Commercial Manager (coordinating HOD) depending upon whether the powers to deal with the case lies at Divisional or Zonal level and after having ascertained that the reasons for the delay given in the application are satisfactory. Application for condonation of delay in preferring an appeal for waiver of demurrage, however, shall be entertained only after the demurrage charges have been paid in full and the application is supported with proof of such payment.  

2.8

The circumstances, which lead to accrual of demurrage/wharfage charges, can be broadly grouped in three categories as under:

     (i)         Reasons within the control of  the consignor/consignee.

    (ii)         Reasons beyond the control of consignor/consignee like labour strike, transportation strike, general bandhs, agitations, riots, curfew, fire, explosion, heavy rains or other abnormal/unforeseen circumstances.

   (iii)         Act of God, act of War and act of public enemies.  

2.9

In case of Category (i), waiver should normally be not done.  However, if at all waiver is to be granted on justified and meritorious facts, speaking orders should be recorded in all such cases.
As regards case pertaining to Category (ii) or Category (iii), waiver can be considered on merits of individual case.  

2.10

The powers for waiver as mentioned above should be exercised judiciously keeping in view the merits of each case as per instructions contained in this letter.  The waiver should not be granted in a routine manner.  

2.11

Whenever the waiver exceeds 50% of the powers conferred on an officer, reasons for such waiver should be recorded in writing.  

2.12

In the case of large sidings, like those of power-houses, where demurrage is not waived on wagon to wagon or daily basis, speaking orders need not be recorded for each consignment/wagon.  It would be sufficient if broad reasons are given in support of such periodical waiver after analyzing the broad causes of such detentions.  

2.13

The causes for accrual of frequent demurrage/wharfage charges from a particular Goods Shed or a siding or a consignor/consignee should be analysed periodically.  Remedial steps including provision of infrastructural facilities should be taken to reduce the detention to rolling stock and prompt removal of goods from the Railway premises.  

3.0

Appeal against orders of waiver

3.1

A consignor/consignee can prefer an appeal to a higher authority in case he is not satisfied with the decision of the lower authority. The Station Manager/Chief Goods Superintendent should forward the appeal to the Divisional authorities within 3 (three) days of the receipt of the appeal.  

3.2

However, before preferring an appeal for waiver of demurrage charges, he is required to deposit the amount of demurrage charges not waived. The original proof of such should be submitted alongwith the appeal.  

3.3

An appeal against the order of lower authority should be preferred within 30(thirty) days of the date when the decision of the lower authority is communicated.  

3.4

A maximum of only two appeals can be made against the decision of the lower authorities. 

3.5

In all cases where a change is made by the appellate authority against the decision taken earlier, speaking orders should be recorded by the appellate authority. 

4.0

The waiver of demurrage/wharfage charge should be dealt as per the instructions contained in this letter. No direct refund of demurrage/wharfage charge should be made unless proper procedure for waiver as laid in this letter has been followed.

5.0

Refund of waived amount of demurrage/wharfage charges should be made expeditiously through pay orders by Commercial Department of the Division.  

6.0

If it is felt that the rules for accrual/waiver of demurrage/wharfage    charges need review, the same should be recommended by the GM to this office with the observations of the Associate Finance.  

This issues with the concurrence of the Finance Directorate of Ministry of Railways.

(Navin Kumar Parsuramka)
Joint Director, Traffic Commercial(R)
Railway Board


Rates Circular No. 25 of 2003

Government of India Ministry of Railways
Railway Board


No.TC-I/2003/201/1

New Delhi, Dated : 24.10.2003

The General Manager (Comml), All Indian Railways.

Sub: Time -limit for first application and appeal for Waiver/refund of demurrage/wharfage charges.

Ref:Board's letter No.TC-I/2001/201/5 dated 2.1.2002


Rates Instruction 1 of 2002 conveyed that the time limit for submission of the first application for waiver of demurrage/wharfage charges shallbe 60 (sixty)days from the date of accrual of such charges.These instructions also stipulated a time limit for preferring appeals against the decision of a lower authority as 60 (sixty) days from the date of order of the lower authority against whom an appeal is made. 

Instances have come to the notice of Board that Railways are facing difficulties in considering time-barred applications for demurrage cases.Board have reviewed the matter and decided that full powers be delegated to General Managers of Zonal Railways to permit condonation of delay intime-barred applications for waiver of demurrage/wharfage in consultation with the FA&CAO of the railway, provided the reasons for the delay beyond 60(sixty) days are found to be satisfactory by the competent authority.Once condonation of delay has been permitted by General Manager, the waiver in such cases shall be dealt with in accordance with the schedule of powers laid down for the consideration of the case. 

This delegation for consideration of time-barred cases has, however, not been provided for appeals on applications already considered by a lower authority. 

All other terms and conditions being observed in the consideration ofwaiver/refund of demurrage/wharfage charges continue to apply unchanged. 

The powers of condonation of delay of time-barred wharfage/demurrage cases are to be exercised by the General Managers alone and no re-delegation of these powers to lower authorities is permissible. 

This issues with the concurrence of the Finance Directorate in the Ministry of Railways.

Please issue necessary instructions to all concerned


(L.Venkataraman)
Director, Traffic Comml. (Rates)
Railway Board





Rates Circular No 43 of 2005

Government of India

Ministry of Railways

Railway Board

No.TC-I/90/201/4 New Delhi, Dt.13.7.2005

Rates Circular No.35 of 2009

Government of India

Ministry of Railways

(Railway Board)

No.TC-I/2009/201/1 New Delhi, dt.22.5.2009

GM(Comml.)

All Indian Railways.

Sub: Write off of Stacking Charge

A clarification has been sought regarding write off of Stacking Charge.

2. The matter has been examined and it is advised that the guidelines regarding

write off of Wharfage Charge as prescribed vide Board’s letter No.TC-I/2004/201/9

dt.10.5.06 (Rates Circular No.38 of 2006) may be made applicable for write off of

Stacking Charge also.

3. This issues with the concurrence of Finance Dte. of Ministry of Railways.

(This disposes off WCR’s letter No.WC/HQ/C/G-373/Outstanding dt.2.4.09)

(N. K. Parsuramka)

Director, Traffic Comml.(Rates)

Railway Board

No.TC-I/2009/201/1 New Delhi, dt.22.5.2009

For Financial Commissioner/Railways

Rates Circular No.35 of 2009

No.TC-I/2009/201/1 New Delhi, dt.22.5.2009

(N.K. Parsuramka)

Director Traffic Comml.(Rates)

Railway Board

Rates Circular No.47 of 2009

Government of India

Ministry of Railways

(Railway Board)

No.TC-I/2004/201/9 New Delhi, dt. 4.8.2009

General Manager(Comml.)

General Manager (Optg.)

All Indian Railways

Sub: Rules regarding waiver of Demurrage/Wharfage charges

Ref: Board’s letter of even number dated 11.10.2004 and 15.12.2004

In supersession of Board’s letter of even number dated 15.12.2004, it has been

decided to insert following lines below the table of ‘Para No. 1.0 Power of officers to

waive Demurrage or Wharfage charges’ of Rates Circular No.39 of 2004:

“The powers of waiver of Wharfage Charges indicated in the table above will

be on consignment basis except in the case of trainload consignment where it

will be applicable on per wagon basis. In the case of trainload consignment,

the application for waiver of Wharfage for a particular rake will be

considered by the authority who is competent to deal with the highest

amount of Wharfage accrued per wagon of that rake.”

This issues with the concurrence of Finance Directorate of the Ministry of

Railways.

(N. K. Parsuramka)

Director, Traffic Comml.(Rates)

Railway Board

Rates Circular No.47 of 2009

No.TC-I/2004/201/9 New Delhi, dt.4.8.2009

Copy to:

1. FA&CAO, All Indian Railways.

2. Dy.C&AG(Rlys), Room No.222, Rail Bhavan, New Delhi.

For Financial Commissioner/Railways

No.TC-I/2004/201/9 New Delhi, dt.4.8.2009

Copy to:

1. Managing Director, CRIS, Chanakyapuri, New Delhi-21.

2. Chief Admn. Officer, FOIS, N. Rly., Camp: CRIS, Chanakyapuri, New Delhi-21.

3. General Secy., IRCA, New Delhi.

4. Secretary, RRT, 5, Dr. P.V. Cherian Crescent Road, Egmore, Chennai-600105.

5. Director General, Railway Staff College, Vadodara

6. Director, IRITM, Campus: Hardoi Bye-pass Road, Vill-Kanausi, P.O.-Manaknagar,

Lucknow-226011

7. Chief Commissioner of Railway Safety, Lucknow.

(N.K.Parsuramka)

Director, Traffic Comml.(Rates)

Railway Board


General Managers(Commercial)

All Indian Railways.

Sub: System of levy of demurrage charges in case of multiparty/multiconsignor/

multi-consignee rakes

In supersession of all earlier instructions on the subject, it has been

decided to consolidate the guidelines for levy of demurrage in case of

multiparty/multi-consignor/multi-consignee rakes as under:

2.0 Guidelines:

2.1 Multiparty/multi-consignor/multi-consignee rake(s) shall be treated as a unit for

the purpose of free time for loading/unloading and levy of demurrage.

2.2 Free time for loading/unloading as permissible to the entire rake should be

allowed.

2.3 If detention of the rake is caused beyond the permissible free time, then,

demurrage charges should be leviable on the entire rake, even if some of the

wagons are released within the free time, actually drawn out & dispatched or

used for back-loading or which could be removed in one shunt without

disturbing the wagons which were under operation of loading/unloading.

2.4 The consignor(s)/consignee(s) who have detained their respective groups of

wagons beyond the permissible free time should be made accountable for the

detention and demurrage charges should be collected from him/them for the

detention of the groups of wagons allowed to him/them.

2.5 The demurrage on the entire rake, duly deducting the demurrage collected from

the other consignor(s)/consignee(s)/endorsee(s), should be collected from the last

party (who is responsible for the detention of the rake).

3.0 This issues with the concurrence of the Finance and Traffic Transportation

Directorates of Ministry of Railways.

Wide publicity may please be given and receipt of this letter may be

acknowledged.

This circular is also available on the website of Indian Railways.

(Navin Kumar Parsuramka)

Joint Director Traffic Commercial (Rates)

Railway Board

Rates Circular No 43 of 2005





Source : Central Railway / Indian Railways Portal CMS Team Last Reviewed on: 15-03-2011  


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