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CHAPTER XI WHARFAGE AND DEMU RRAGE 1101

No.TC-I/2004/201/9 · 2004-10-11
Circulartrain-services

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Circular numberNo.TC-I/2004/201/9
Date2004-10-11
TypeCommercial Circular
Topictrain-services
Official PDFindianrailways.gov.in

Summary

The rules regarding waiver of demurrage / wharfage charges have been revised vide Board's letter No.

Text of the circular

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
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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.
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1103       Waiver
1 1 0 3 ( a ) D u e c a r e s h o u l d b e t a k e n i n p r e p a r a t i o n o f t h e 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 f

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