Indian Railways Wharfage and Demurrage Rules PDF

1/27/25, 8:37 PM CHAPTER XI WHARFAGE AND DEMU RRAGE 1101 CHAPTER XI WHARFAGE AND DEMURRAGE 1101. Demurrage and Wharfage are defined in...

1/27/25, 8:37 PM CHAPTER XI WHARFAGE AND DEMU RRAGE 1101 CHAPTER XI WHARFAGE AND DEMURRAGE 1101. Demurrage and Wharfage are defined in the Railways Act, 1989 (No. 24 of 1989) as under :— "Demurrage" means the charge levied for the detention of any rolling stock after the expiry of free time, if any, allowed for such detention. "Wharfage" means the charge levied on goods for not removing them from the railway after the expiry of the free time for such removal. Section 30(2) of the same Act gives powers to the Central Government to fix from time to time by general or special order the rates of demurrage and wharfage and to specify the conditions subject to which such rates shall apply. Relevant extract of this Section is reproduced below :— "The Central Government may, by a like order, fix the rates of any other charges incidental to or connected with such carriage including demurrage and wharfage for the whole or any part of the railway and specify in the order the conditions subject to which such rates shall apply." A Notification containing Railway (Warehousing and Wharfage) Rules, 1958 was issued by the Central Government on 28-8-1958. These Rules as amended from time to time continue to remain in force. No new order has been issued by the Central Government under Section 30(2) of the Railways Act, 1989 as it was not considered necessary. A copy of this Notification is placed at Appendix VII. The rules regarding waiver of demurrage / wharfage charges have been revised vide Board's letter No. TC-I/ 2004/201/9 dated 11-10-2004 (Rates Circular No.39 of 2004) 1102. Powers of Officers to waive Demurrage or Wharfage Charges 1102(a). Waiver of Demurrage/Wharfage Charges 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. (Authority Railway Board's letter No.TC-I/2004/201/9 Pt.B dated 20.8.2009)--acs no.18 1102(b). Where Demurrage cases are being handled by Officers of Operating Department, CCM / Sr. DCM etc. will mean COM / Sr.DOM etc. 1102(c). 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. 1102(d). 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 Coordinating HOD of the Commercial Department and FA&CAO of the Zonal Railways. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh11_data.htm#1101. 1/5 1/27/25, 8:37 PM CHAPTER XI WHARFAGE AND DEMU RRAGE 1101 1103 Waiver 1103(a) 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. 1103(b) 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. 1103(c) 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. 1103(d)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 the first instance itself. However, in case of regular rail users, instead of prepayment of Wharfage, FDR of appropriate value may be collected either on a case to case basis or in lump sum (to be decided by DRMs in consultation with Sr. DFMs) depending on the value of Wharfage that accrues on the consignment of such users. In exceptional circumstances involving force majeure conditions, GMs may condone the provision for prepayment/collection of FDR. This power of GM will not be further delegated. (Authority Railway Board's letter No.TC-I/2004/201/9 Pt.B dated 20.8.2009)--acs no.18 1103(e) 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. 1103(f) 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. 1103(g) 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, shallbe entertained only after the demurrage charges have been paid in full and the application is supported with proof of such payment. 1103(h) 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. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh11_data.htm#1101. 2/5 1/27/25, 8:37 PM CHAPTER XI WHARFAGE AND DEMU RRAGE 1101 (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. 1103(i) In case of Category (i) above, 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. 1103(j) 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. 1103(k) Whenever the waiver exceeds 50% of the powers conferred on an officer, reasons for such waiver should be recorded in writing. 1103(1) In the case of large sidings, like those of power-houses, where demurrage is not waived on wagon to wagon or daily basis, s p e a k i n g o r d e r s n e e d n o t b e r e c o r d e d f o r e a c h 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. 1103(m) The causes for accrual of frequent demurrage/wharfage charges f r o m a p a r t i c u l a r G o o d s S h e d o r a s i d i n g o r 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. 1104 Appeal against orders of waiver 1104 (a) A consignor/consignee can prefer an appeal to a higher authority in case he is not satisfied with the decision of the l o w e r a u t h o r i t y. T h e S t a t i o n M a n a g e r / C h i e f G o o d s Superintendent should forward the appeal to the Divisional authorities within 3 (three) days of the receipt of the appeal. 1104(b) 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. 1104(c) 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. 1104(d) A maximum of only two appeals can be made against the decision of the lower authorities. 1104(e) 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. 1105 The waiver of demurrage/wharfage charge should be dealt as per the instructions. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh11_data.htm#1101. 3/5 1/27/25, 8:37 PM CHAPTER XI WHARFAGE AND DEMU RRAGE 1101 1106 Refund 1106(a) No direct refund of demurrage/wharfage charge should be made unless proper procedure for waiver has been followed. While granting refund of wharfage or demurrage charges due cognizance should be taken of the quantum of waiver already allowed in each case. 1106(b) For any refund of wharfage or demurrage prior account verification as distinct from Finance concurrence is required to be done to establish that the amount to be refunded has actually been received by the Railway. Such refunds would be subject to post check by the Finance. No prior Finance concurrence would be required in these cases. (Authority Railway Board's letter No. No.TC-I/2004/201/9 Pt.B dt. 24.1.2008)---acs no. 17 1106(c) Refund of waived amount of demurrage/wharfage charges s h o u l d b e m a d e e x p e d i t i o u s l y t h r o u g h p ay o r d e r s b y Commercial Department of the Division." (Authority:-Railway Board letter No. TC-I/2004/201/9 pt. B dated 21-06-05)--- ACS NO.12 ******------***** https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh11_data.htm#1101. 4/5 1/27/25, 8:37 PM CHAPTER XI WHARFAGE AND DEMU RRAGE 1101 https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh11_data.htm#1101. 5/5