Railway Charges: Demurrage and Wharfage Overview

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Questions and Answers

What does 'demurrage' refer to in the context of the Railways Act, 1989?

  • The charge levied for damage caused to railway property during transit.
  • The charge levied on goods for not removing them from the railway after the expiry of free time.
  • The charge levied for the detention of any rolling stock after the allowed free time. (correct)
  • The charge levied for the transportation of goods by railway.

According to the Railways Act, 1989, what is 'wharfage'?

  • A charge levied if goods are not removed from the railway after their free time expires. (correct)
  • A tax on goods transported by rail.
  • A fee for using railway platforms.
  • A charge for storing goods in a railway warehouse.

Which entity has the power to fix the rates of demurrage and wharfage according to Section 30(2) of the Railways Act, 1989?

  • The Railway Board.
  • The Local Municipality.
  • The State Government.
  • The Central Government. (correct)

What does Section 30(2) of the Railways Act, 1989, empower the Central Government to do?

<p>Fix rates for charges incidental to carriage, including demurrage and wharfage. (B)</p> Signup and view all the answers

What is the name of Notification issued by the Central Government regarding warehousing and wharfage?

<p>Railway (Warehousing and Wharfage) Rules, 1958 (B)</p> Signup and view all the answers

As of the information provided, which statement is true regarding the Railway (Warehousing and Wharfage) Rules, 1958?

<p>They have been amended and are still in force. (C)</p> Signup and view all the answers

According to Board's letter No.TC-I/ 2004/201/9 dated 11-10-2004, what aspect of demurrage and wharfage charges was revised?

<p>The rules regarding waiver of these chargers. (C)</p> Signup and view all the answers

Regarding powers to waive Wharfage Charges, how does the applicability differ between consignment types?

<p>Powers of waiver are applicable on consignment basis except in the case of trainload consignment where it is applicable on per wagon basis. (C)</p> Signup and view all the answers

Within how many days should the Station Manager/Chief Goods Superintendent forward an appeal to the Divisional authorities?

<p>3 days (C)</p> Signup and view all the answers

What is a mandatory requirement before a consignor/consignee can appeal for a waiver of demurrage charges?

<p>Depositing the amount of demurrage charges not waived (D)</p> Signup and view all the answers

Within what timeframe should an appeal against a lower authority's order be submitted, from the date the decision was communicated?

<p>30 days (D)</p> Signup and view all the answers

What is the maximum number of appeals that can be made against a decision of the lower authorities?

<p>A maximum of two appeals (D)</p> Signup and view all the answers

Regarding refunds of demurrage/wharfage charges, what type of verification is required before a direct refund can be made?

<p>Prior account verification distinct from Finance concurrence (A)</p> Signup and view all the answers

For a trainload consignment, which authority considers the waiver of wharfage?

<p>The authority competent to handle the highest amount of wharfage accrued per wagon of that rake (B)</p> Signup and view all the answers

When demurrage cases are handled by Operating Department officers, who does CCM/Sr.DCM correspond to?

<p>Chief Operations Manager (COM) / Sr.DOM (C)</p> Signup and view all the answers

Which level of officer should handle waiver cases, according to the provided guidelines?

<p>An officer at least at the level competent to handle the case as per the schedule of powers. (D)</p> Signup and view all the answers

What is the prerequisite for waiving Demurrage or Wharfage charges above Rs. 25,000 per wagon/consignment?

<p>Prior Finance concurrence is required. (B)</p> Signup and view all the answers

When cases are submitted to the General Manager for waiver, through which coordinating HOD should they be routed?

<p>Coordinating HOD of the Commercial Department and FA&amp;CAO (A)</p> Signup and view all the answers

What is the primary objective regarding demurrage/wharfage bills?

<p>To prepare carefully at the first instance to avoid recasting later. (C)</p> Signup and view all the answers

Under what circumstances can a consignor/consignee apply for a waiver of demurrage/wharfage?

<p>If the charges are due to reasons beyond their control. (C)</p> Signup and view all the answers

What is the stipulated timeframe for submitting the initial waiver application for demurrage or wharfage?

<p>Within 10 days from the date up to which these charges had accrued. (A)</p> Signup and view all the answers

In case of wharfage, what is the prerequisite action the consignor/consignee needs to take while applying for waiver at the first instance?

<p>Remove the consignment, deposit the wharfage, and submit proof of payment. (C)</p> Signup and view all the answers

Where should the first application for waiver of demurrage or wharfage be submitted?

<p>To the Station Manager/Goods Supervisor (A)</p> Signup and view all the answers

Under what conditions related to the consignor or consignee might a waiver of demurrage charges be considered?

<p>When the delay is caused by acts of war or public enemies. (B)</p> Signup and view all the answers

What course of action should be taken regarding frequent demurrage/wharfage charges from a particular goods shed or siding or a consignor/consignee?

<p>Conduct a periodic analysis to identify causes and implement solutions. (C)</p> Signup and view all the answers

What is the appropriate procedure when waiving demurrage charges for large sidings?

<p>Broad reasons should be given in support of periodical waivers after analysing the broad causes of detentions. (A)</p> Signup and view all the answers

What is the recommended approach when considering waivers of demurrage charges related to circumstances under the control of the consignor/consignee?

<p>Waivers should normally not be done unless there are justified facts. (A)</p> Signup and view all the answers

What is an unacceptable reason for waiving demurrage charges?

<p>To expedite the freight handling process (D)</p> Signup and view all the answers

What documentation is required when an officer waives more than 50% of their authorized demurrage charge waiver limit?

<p>Written reasons justifying the waiver. (D)</p> Signup and view all the answers

What are examples of 'reasons beyond the control' of a consignor/consignee?

<p>Transportation strike (C)</p> Signup and view all the answers

What is the purpose of analysing the causes for accrual of frequent demurrage charges?

<p>To implement infrastructural upgrades to minimize the detention of rolling stock. (C)</p> Signup and view all the answers

In the context of waiving demurrage charges, what does 'speaking orders' refer to?

<p>Written orders that provide detailed justification. (A)</p> Signup and view all the answers

What considerations should be considered during a waiver?

<p>Waivers should be granted as per instructions, carefully considering the merits and justification of each individual case. (A)</p> Signup and view all the answers

For regular rail users, what alternative to prepayment of Wharfage is permissible, as determined by DRMs and Sr.DFMs?

<p>Fixed Deposit Receipt (FDR) of appropriate value collected on a case-to-case basis or in a lump sum. (C)</p> Signup and view all the answers

Under what specific conditions can the General Manager (GM) condone the provision for prepayment/collection of FDR for wharfage?

<p>In exceptional circumstances involving force majeure conditions. (D)</p> Signup and view all the answers

According to the guidelines, can the General Manager's (GM) power to condone the provision for prepayment/collection of FDR further be delegated?

<p>No, this power of GM will not be further delegated. (C)</p> Signup and view all the answers

What is the timeline for the Station Manager/Chief Goods Supervisor to forward an application for waiver of demurrage or wharfage to the Divisional Officer?

<p>Within 3 days of receiving the application. (A)</p> Signup and view all the answers

For large sidings like those of power houses and steel plants, what is the prescribed time limit for submitting the first application for waiver of demurrage charges?

<p>The next month (application for waiver of demurrage charges accrued in one month should be submitted latest within the next month). (D)</p> Signup and view all the answers

Under what specific conditions can a delay beyond the prescribed period (10 days/next month) for demurrage waiver applications be condoned?

<p>Only with the personal approval of the Divisional Railway Manager/Chief Commercial Manager after ascertaining that the reasons for the delay are satisfactory. (D)</p> Signup and view all the answers

What is a mandatory condition that must be met before an application for condonation of delay in preferring an appeal for waiver of demurrage can be entertained?

<p>The demurrage charges have been paid in full and the application is supported with proof of such payment. (A)</p> Signup and view all the answers

According to the document, what is the primary factor considered when categorizing circumstances that lead to accrual of demurrage/wharfage charges?

<p>Whether the reasons are within the control of the consignor/consignee. (C)</p> Signup and view all the answers

Which of the following represents a valid reason within the consignor's/consignee's control that could lead to demurrage charges?

<p>Delay in arranging for the unloading of goods after arrival. (C)</p> Signup and view all the answers

In the context of waiving demurrage charges, what constitutes 'force majeure' conditions that might warrant special consideration?

<p>Unforeseeable events that prevent fulfilling a contract (e.g., natural disasters). (A)</p> Signup and view all the answers

According to the Railways Act, 1989, which statement accurately describes the relationship between the Central Government and the rates of demurrage and wharfage?

<p>The Central Government has the authority to fix both demurrage and wharfage rates through general or specific orders, including the conditions under which these rates are applicable. (C)</p> Signup and view all the answers

Considering the historical context provided, what is the current status of the Railway (Warehousing and Wharfage) Rules, 1958, in relation to the Railways Act, 1989?

<p>The 1958 Rules remain in force and are periodically amended, as the Central Government has not deemed it necessary to issue any new orders under Section 30(2) of the 1989 Act. (C)</p> Signup and view all the answers

How does the provision for waiving wharfage charges differ between trainload and individual consignment?

<p>The waiver applies on a per wagon basis for trainload consignments, whereas for individual consignments, it is on a consignment basis. (A)</p> Signup and view all the answers

A railway customer frequently incurs wharfage charges due to delays in removing goods. According to the guidelines, what is the MOST appropriate initial action the railway administration should take?

<p>Initiate a formal inquiry into the reasons for the delays and explore potential solutions, such as improved communication or adjusted handling procedures. (C)</p> Signup and view all the answers

A consignor seeks a waiver of demurrage charges, citing unforeseen circumstances that led to a delay in the removal of goods. In what situation would it be unacceptable to provide a waiver?

<p>A failure of the consignor to arrange for timely payment due to internal accounting errors. (C)</p> Signup and view all the answers

An officer, while authorized to waive demurrage charges up to a certain limit, exceeds 50% of this authorized limit in a single instance. What specific documentation is required in such cases?

<p>A detailed explanation of the reasons for the waiver, along with supporting evidence, which must be recorded in a register maintained for this purpose. (D)</p> Signup and view all the answers

What conditions are considered reasons beyond the control of the consignor/consignee?

<p>Strikes, Riots or 'Force Majeure' conditions. (A)</p> Signup and view all the answers

What action should be taken regarding frequent demurrage/wharfage charges from a particular goods shed or siding or a consignor/consignee?

<p>Analyze causes for accrual. (B)</p> Signup and view all the answers

What is required to be submitted along with an appeal for waiver of demurrage charges?

<p>Proof of deposit of demurrage charges not waived (C)</p> Signup and view all the answers

Which statement accurately reflects the process for appeals against lower authority decisions?

<p>An appeal must be filed within 30 days of decision communication. (D)</p> Signup and view all the answers

In what scenario can the appellate authority change a prior decision regarding demurrage charges?

<p>When speaking orders are recorded against the previous decision. (C)</p> Signup and view all the answers

What verification is required prior to granting refunds for demurrage charges?

<p>Confirmation of payment to the Railway (B)</p> Signup and view all the answers

Which of the following describes the limitations placed on appeals regarding demurrage charges?

<p>A maximum of two appeals can be made against any decision. (D)</p> Signup and view all the answers

What documentation is required when more than 50% of authorized demurrage charge waiver limit is waived?

<p>Written reasons for the waiver should be recorded. (B)</p> Signup and view all the answers

In cases of frequent demurrage/wharfage charges, what remedial steps are advised?

<p>Periodic analysis and provision of infrastructural facilities. (B)</p> Signup and view all the answers

Which category allows for waiver consideration based on individual case merits?

<p>Category (ii) and (iii) (A)</p> Signup and view all the answers

What is the recommended practice for waiving demurrage for large sidings?

<p>Broad reasons provided after overall analysis, not case-by-case. (D)</p> Signup and view all the answers

What criteria should not be applied when granting waivers for demurrage charges?

<p>Routine or arbitrary basis without justification. (D)</p> Signup and view all the answers

Which circumstances are considered 'reasons beyond the control' of consignors/consignees?

<p>Heavy rains and acts of God. (A)</p> Signup and view all the answers

What should be done if the causes for frequent charges are attributed to specific goods sheds?

<p>Conduct a periodic analysis and take remedial steps. (C)</p> Signup and view all the answers

When can speaking orders be waived for large sidings?

<p>When analyzing broad reasons for periodic waivers. (A)</p> Signup and view all the answers

What action is recommended for unusual occurrences that lead to demurrage?

<p>Review and document causes for future prevention. (D)</p> Signup and view all the answers

What should be recorded if a waiver exceeds 50% of an officer's powers?

<p>Specific reasons for the waiver in writing. (B)</p> Signup and view all the answers

What is a requirement for the first application for waiver of demurrage or wharfage charges?

<p>Must be submitted to the Station Manager/Goods Supervisor within 10 days (D)</p> Signup and view all the answers

Which officer's approval is not adequate for waiving demurrage or wharfage charges over Rs. 25,000?

<p>Officer of Operating Department (D)</p> Signup and view all the answers

In the context of waiving charges, which of the following actions must the consignor take for Wharfage waiver?

<p>Deposit the amount of Wharfage charges before applying (D)</p> Signup and view all the answers

What kind of cases should not be handled by an officer below which specific level?

<p>Officer competent for the case as per the schedule of powers (C)</p> Signup and view all the answers

What must be included when a consignor applies for a waiver based on uncontrollable circumstances?

<p>Relevant details and documentary evidence (D)</p> Signup and view all the answers

In the context of demurrage and wharfage charges, which documentation is essential when an officer waives more than 50% of their authorized limit?

<p>Justification memo (C)</p> Signup and view all the answers

What is the stipulated action a consignor/consignee must take before submitting a waiver application concerning Wharfage?

<p>Remove the consignment from railway premises (B)</p> Signup and view all the answers

Which of the following signifies a core objective in the preparation of demurrage/wharfage bills?

<p>Prevent the need for subsequent bill recasting (B)</p> Signup and view all the answers

Who should handle the cases routed to the General Manager for waiver applications?

<p>Through the Coordinating HOD of the Commercial Department (A)</p> Signup and view all the answers

What is the timeline for the Station Manager/Chief Goods Supervisor to forward an application for waiver of demurrage or wharfage?

<p>Within 3 days (C)</p> Signup and view all the answers

In case of large sidings, what is the time limit for preferring the first application for waiver of demurrage charges?

<p>Next month (A)</p> Signup and view all the answers

Under which condition can the delay beyond the specified period for waiving demurrage charges be condoned?

<p>With the personal approval of either the Divisional or Zonal authority depending on power jurisdiction (D)</p> Signup and view all the answers

What conditions must be met before entertaining an application for condonation of delay in preferring an appeal for waiver of demurrage?

<p>Complete payment of the demurrage charges must be made, and proof is required (A)</p> Signup and view all the answers

Which of the following circumstances is categorized as being within the control of the consignor or consignee?

<p>Incorrect documentation of the shipment (D)</p> Signup and view all the answers

Which authority's approval is not needed for the General Manager to condone the provisions for prepayment of Wharfage?

<p>Railway Board (B)</p> Signup and view all the answers

What should the concerned authority consider when evaluating applications for waiving frequent demurrage/wharfage charges?

<p>Patterns of previous charges and their justifications (A)</p> Signup and view all the answers

What is required from the Divisional Railway Manager when addressing delays in applications for waiver beyond the 10-day limit?

<p>A valid justification that is satisfactory to the Manager (A)</p> Signup and view all the answers

What type of financial document may be collected for regular rail users instead of prepayment of Wharfage?

<p>Fixed Deposit Receipt (FDR) (D)</p> Signup and view all the answers

What condition must be fulfilled before the Station Manager can forward a waiver application?

<p>Detailed remarks on the reason for the waiver requested (B)</p> Signup and view all the answers

Flashcards

Demurrage

A charge for detaining rolling stock beyond the allowed free time.

Wharfage

A charge on goods not removed from the railway after free time expires.

Railways Act, 1989

Legislation that governs charges like demurrage and wharfage in rail transportation.

Central Government powers

Can fix rates for demurrage and wharfage via orders.

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Notification of 1958

Issued rules for warehousing and wharfage still in effect today.

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Waiver of charges

Officers have the power to waive demurrage or wharfage fees under certain conditions.

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Conditions for rates

The Central Government specifies conditions under which rates apply.

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Amendment date 2004

Revisions to the waiver rules communicated via a circular in October 2004.

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Appeal process

Consignor/consignee can appeal if unsatisfied with a lower authority's decision.

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Time limit for appeal

An appeal must be preferred within 30 days of the decision notification.

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Deposit requirement

Before appealing for waiver, the amount of demurrage charges must be deposited.

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Maximum appeals allowed

Only two appeals can be made against the lower authority's decision.

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Refund procedure

No direct refund of charges unless waiver procedures are followed.

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Wharfage Waiver Application

Request for waiver of wharfage charges for a trainload consignment made to an authority.

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Competent Authority

The specific authority responsible for approving waivers of charges.

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Demurrage Charges Waiver

Process to request the removal of demurrage charges due to uncontrollable factors.

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Time Limit for Waiver Application

First waiver application for charges must be submitted within ten days.

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Documentary Evidence

Required proofs that support a request for waiver of charges.

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Removal of Consignment

Requirement to remove goods from premises before applying for wharfage waiver.

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Submission Route for Waivers

Waiver cases above Rs.25,000 must go through specific officials for approval.

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Preparation of Bills

Careful preparation of demurrage/wharfage bills to avoid corrections.

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First Application Submission Point

The first waiver application is submitted to the Station Manager/Goods Supervisor.

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Finance Concurrence Requirement

Prior finance approval needed for waivers over Rs. 25,000 per wagon/consignment.

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Waiver of Demurrage

A decision to exempt charges for delays in loading/unloading goods.

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Categories of Waiver

Different reasons for which waivers may be considered.

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Category (i) Waiver

Waivers that are not generally granted unless justified by specific facts.

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Category (ii) Waiver

Waivers that can be considered on a case-by-case evaluation.

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Category (iii) Waiver

Waivers related to extreme events like war or natural disasters.

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Judicious Use of Powers

Exercise of waiver power must consider the merits of each case.

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Recording Reasons

Documenting justifications for waivers exceeding 50% authority.

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Large Sidings Waiver

Broad reasons may suffice for large sidings rather than individual records.

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Frequent Demurrage Causes

Regular analysis of delays to identify and remedy issues.

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Infrastructural Facilities

Improvements needed to reduce delay in goods handling.

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Wharfage Prepayment

The advance payment required for the handling of goods at a port or terminal.

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Force Majeure

Exceptional circumstances preventing fulfillment of obligations, often leading to a waiver.

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FDR Collection

Financial Deposit Receipt collected for services like wharfage, instead of immediate payment.

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Demurrage Charges

Fees charged for the prolonged retention of cargo beyond the specified period.

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Waiver Application

A request to forgive or exempt charges like demurrage or wharfage.

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Station Manager's Role

To forward waivers of charges to Divisional Officer within three days of receipt.

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Large Sidings Time Limit

Waiver applications for large sidings must be submitted by the next month.

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Approval for Delay

Personal approval needed from higher officials for condoning delays in waivers beyond stipulated time.

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Categories of Charges

Three broad categories leading to demurrage/wharfage charges.

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Proof of Payment

Document showing that demurrage charges have been paid in full before applying for waiver condonation.

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Demurrage Fee Timing

Charge incurred after the expiration of allowed free time for rolling stock detention.

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Wharfage Definition

Charge for goods not removed from the railway after free removal time.

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Section 30(2) Powers

Allows the Central Government to fix rates for demurrage and wharfage.

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Railway (Warehousing and Wharfage) Rules, 1958

Set of rules governing warehousing and wharfage, still applicable today.

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Waiver on Consignment Basis

Waiver powers for charges applied on a specific consignor basis, or per wagon.

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Conditions for Waivers

Specific criteria under which demurrage or wharfage charges can be waived.

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Timing for Waiver Applications

Waiver requests must be submitted within ten days for the first application.

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Documentary Proof for Waiver

Required evidence to support waivers of demurrage or wharfage charges.

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Authority for Waiver

The entity responsible for considering waivers of Wharfage.

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Demurrage Handling Officers

Officers in the Operating Department handling demurrage cases.

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Minimum Officer for Waiver

Waiver cases can't be dealt by lower-ranking officers.

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Finance Concurrence Limit

Approval needed from Finance for waivers over Rs.25,000.

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First Waiver Application Timeframe

Initial waiver applications must be filed within 10 days.

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Consignment Removal Requirement

Goods must be removed before applying for waiving Wharfage.

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Submitting Waiver Requests

Waiver applications must go through proper channels for approval.

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Documentary Evidence for Waiver

Proof required to support a waiver application.

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Waiver Bills Preparation

Careful preparation of bills helps avoid disputes later.

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Wharfage Charges Payment

Original payment proof is needed when requesting Wharfage waiver.

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FDR Collection Policy

Financial Deposit Receipts may replace prepaid Wharfage for regular rail users.

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Waiver Application Timing

Waiver applications for demurrage must be submitted by the next month after charges accrue.

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Divisional Officer's Role

The Station Manager must forward waiver applications to the Divisional Officer within three days.

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Approval for Condonation

Delay beyond 10 days in waiver applications needs personal approval from higher officials.

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Proof of Payment Requirement

Demurrage charges must be paid fully before applying for waiver condonation.

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Categories of Charge Accrual

Demurrage and wharfage charges arise from reasons controllable by consignor/consignee.

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Force Majeure Waiver

In exceptional circumstances, GMs may condone prepayment requirements for Wharfage.

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Demurrage Waiver Reasons

Waiver requests can be justified based on documented reasons behind the charges.

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Submissions for Waiver

First waiver application must be submitted within ten days of charge accrual.

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Reasons for Waiver

Factors that might justify a waiver of charges like strikes or natural disasters.

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Justified Waiver

A waiver that is granted based on strong, documented circumstances.

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Judicious Exercise of Power

Carefully considering the merits of each case before granting a waiver.

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Broad Reasons

General explanations provided for waiving charges in large sidings instead of specific justifications for each case.

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Periodic Analysis of Charges

Regular examination of why demurrage or wharfage charges are frequently incurred.

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Waiver Exceeding 50%

Instances where the waiver granted surpasses half of the authorized limits and needs written justification.

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Infrastructural Improvements

Upgrades necessary to minimize delays in handling cargo and prevent additional charges.

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Demurrage Deposit Requirement

A prerequisite to deposit demurrage charges before appealing for a waiver.

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Time Limit for Appealing

An appeal must be submitted within 30 days from when the decision was communicated.

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Maximum Appeals

Only two appeals can be made against any decision of the lower authority.

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Speaking Orders Requirement

The appellate authority must document reasons for any changes to previous decisions.

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Study Notes

Wharfage and Demurrage

  • Demurrage and Wharfage are defined in the Railways Act, 1989.
  • Demurrage is a charge for delaying rolling stock beyond free time.
  • Wharfage is a charge for not removing goods from the railway after free time.
  • The Central Government sets demurrage and wharfage rates and conditions.
  • A 1958 notification, amended over time, establishes the rules. The rules remain in force.
  • The 2004 rules revised demurrage/wharfage charge waiver procedures.

Waiver of Charges

  • Wharfage waiver applications are on a consignment basis, except for trainload consignments, which use a per-wagon basis.
  • Waiver for a specific trainload is dealt by the highest-amount authority.
  • Officer competence is required; no lower-level officers can handle cases.
  • Waiver requests above Rs. 25,000 require finance concurrence.
  • Requests go through relevant department personnel. COM/ Sr. DOM are used for some cases.
  • Waiver requests must include all supporting documents.

Procedures for Waiver

  • Waiver requests (within 10 days of charge accrual) are directed to station managers/supervisors.
  • Wharfage users must remove goods, pay charges, and provide payment proof. This is followed by applying for waiver.
  • For regular users, a fixed deposit (FDR) can replace prepayment.
  • Force majeure (exceptional circumstances) allows general managers to condone prepayment.
  • Divisional Officers receive waiver requests within 3 days.

Large Siding Waivers

  • For large sidings (e.g., power houses), waiver requests for demurrage charges must be processed in the following month.

Waiver Appeal Process

  • Appeals to higher authorities are allowed for dissatisfaction with a lower authority's decision.
  • Appeals must be made within 30 days of the lower authority's decision.
  • Appeals are limited to two levels.
  • Documentation of changes by the appellate authority is required.

Refunds

  • Refunds for demurrage/wharfage are not direct; proper waiver procedures must be followed.
  • Financial verification is required to ensure the railway received the amount.
  • Refunds are processed by the Commercial Department.

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