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      Rules
         Waiver of Demurrage





 
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Waiver of Demurrage

Wharfage and Demurrage  

        Wharfage charge is leviable on goods/parcel consignments separately which are not removed from the Railway premises by the parties within the free time allowed. No wharfage will be levied on consignments held by Railway administration.  

        In case of excessive congestion at any terminal, the Railway administration can notify higher wharfage charges up to 06 times of the prevailing rates applicable for the first 24 hours. This can be implemented only after giving a due notice of 48.00 hrs. and wide publicity. 

GOODS: 

Wharfage will be levied for the period from the commencement of unloading of consignment in Railway premises till its removal. 

Railway premises (Goods sheds/stations) are classified in to three groups on the basis of average number of rakes dealt with during the period from 1st Jan to 30 th Aprl as under:- 

Category of stations

Quantum of traffic

Group-I

More than 12 rakes per month

Group-II

07 to  12 rakes per month

Group-III

Less than 07 rakes per month

Permissible free time for removal of goods from railway premises: 

(a)Goods stacked in goods shed etc. waiting to be loaded in wagons/rake 

Category of stations

Hours

Group-I

12 working hours from the expiry of free time for loading of wagons/rake

Group-II

15 working hours from the expiry of free time for loading of wagons/rake

Group-III

30 working hours from the expiry of free time for loading of wagons/rake

 (b)Goods unloaded from wagons/rake waiting to be removed from goods shed etc.

Category of stations

Hours

Group-I

12 working hours from the expiry of free time for unloading of wagons/rake

Group-II

15 working hours from the expiry of free time for unloading of wagons/rake

Group-III

30 working hours from the expiry of free time for unloading of wagons/rake

  WHARFAGE RATES: 

Category of stations

Rate

Group-I

Rs.100/- per wagon per hour or part thereof

Group-II

Rs.  75/- per wagon per hour or part thereof

Group-III

Rs.  50/- per wagon per hour or part thereof

Demurrage charge is leviable for detention of Rolling stock like wagons/rake, vans/SLRs after expiry of free time. 

DEMURRAGE CHARGES: 

The demurrage charge shall be levied @ Rs.100/- per 08 wheeled wagon per hour or part of an hour, for detention of wagon in excess of the permissible free time for loading or unloading. 

At new sidings opened after 01.04.2006, the free time of Terminal Incentive cum Engine on Load Scheme  (TIELS) will be applicable for loading & unloading  for various types of block rakes as under :- 

                                                                   EOL free time in hrs.

Type of wagons

Loading

Unloading

Open Rake (BOXN etc.)

3:00

5:00

Hopper Rake (BOBR etc.)

3:00

2:00

Covered Rake (BCN etc.)

6:00

6:00

Tank Rake (BTPN etc)

5:00

5:00

         In case free time for loading/unloading of a rake and free time for removal of consignment had expired, loading/unloading of wagons is going on and the consignment has not been removed within the free time for removal, demurrage for detention of rake beyond free time and wharfage for detention of consignment beyond free time both will be levied. 

PARCEL & LUGGAGE: 

For the purpose of granting free time for removal of consignment and levy of wharfage, station will be classified in to two groups –(1) Notified stations (2) Other than notified stations.  

“PERMISSIBLE FREE TIME FOR REMOVAL OF PARCELS: 

Permissible free for removal of consignment (other than leased) from railway premise will be as given below :- 

Type of station

Permissible free time for removal

Parcel/Luggage

2 or 3 or 4-wheeled carriage, motor-boat, dog-cart, tonga, palaquin, dhooly, howdah etc.

Livestock*

Notified Stations

10 hours of working of delivery section of parcel office after consignment is unloaded

6 hours of working of delivery section of parcel office after consignment is unloaded

6 hours of working of delivery section of parcel office after consignment is unloaded

Other than Notified Stations

18 hours of working of delivery section of parcel office after consignment is unloaded

 

 

 *Under any circumstances, livestock shall be removed from the Railway premise within 24 hours from the time of their arrival at destination, failing which they may be disposed off in accordance with the provisions contained is sub-section (2) of Section 84 of the Railways Act 1989.”   

WHARFAGE RATES: 

“Wharfage charge will be levied for excess detention of consignment at railway premise at the rates prescribed below: 

Type of Station

Rates of Wharfage Charge

 

Parcel/Luggage

2 wheeled carriage (e.g. motor cycle, cycle)

3 or 4-wheeled carriage, motor-boat, dog-cart, tonga, palanquin or dhooly, howdah etc.

Livestock#

Notified Stations

Rs.1.00 per 50 Kg or part thereof per hour or part of an hour

Rs.10.00 per head per hour or part of an hour

Rs.25.00 per head per hour or part of an hour

Rs.10.00 per head per hour or part of an hour

Other than Notified Stations

Rs.0.50 per 50 kg or part thereof per hour or part  of an hour

 #The expenses entailed in feeding the livestock will also leviable irrespective of the fact whether the livestock was removed within the free time or beyond free time.” 

“Parcel Vans/Parcel Rake (like VP, VPU, VPH, VPHX VPR etc.) 

The permissible free time for loading/unloading of Parcel Van/Parcel Rake will be as prescribed below:  

Number

Permissible free time (in hours and minutes)

Loading

Unloading

Upto 3 Parcel Vans

3:00

3:00

4 to 10 Parcel Vans +1 SLR or 2 SLRs

5:00

5:00

11 to 15 Parcel Vans + 1 SLR or 2 SLRs

6:00

6:00

16 to 20Parcel Vans + 1 SLR or 2 SLRs

7:00

7:00

More than 20 Parcel Vans + 1 SLR or 2 SLRs

8:00

8:00

 In case there is unloading and back-loading of the same parcel vans at a terminal, the free time for unloading and loading will be permitted separately.”

The extant rules of waiver prescribe specifically the Officers who can consider the application/appeal for waiver and this power for waiver shall not be delegated.   

2.         Power of Officers to waive Demurrage or Wharfage charges: 

Designation of Officer

Maximum amount of demurrage per wagons which can be considered by an Officer

Maximum amount of wharfage per consignment which can be considered by an Officer.

1.

General Manager

Full powers

Full powers

2.

Chief Commercial Manager Co-ordinating HOD in Commercial Department)

Rs.1,00,000/-

Rs.1,00,000/-

3.

Divisional Railway Manager

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/-

(i)         The powers of waiver of wharfage charges indicated in the table above will be on consignment basis except in the case of train load consignments where it will be applicable on per wagon basis. 

(ii)        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. 

(iii)       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. 

3.         Waiver

(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. 

(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. 

(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. 

(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 first instance itself. 

(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. 

(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. 

(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, shall be entertained only after the demurrage charges have been paid in full and the application is supported with proof of such payment. 

(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. 

(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. 

(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 cases. 

(j)       The powers for waiver as mentioned above should be exercised judiciously keeping in view the merits of each case.  The waiver should not be granted in a routine manner. 

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

(l)        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.

(m)     The causes for accrual of frequent demurrage/wharfage charges from a particular Goods Shed or a siding or a consignor/consignee should be analyzed 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.

4.         Appeal against orders of waiver: 

(a)       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. 

(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. 

(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. 

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

(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. 

5.         Refund

(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. 

(b)       For any refund of wharfage or demurrage above Rs.25,000/- prior Finance concurrence is required.  For amounts below Rs.25,000/- but above Rs.200/-, 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. 

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

***

 

APPLICATION FOR WAIVER OF DEMURRAGE AND WHARFAGE

 

                                                                                                                                                   Date:……………..

 

To

The ………….

SEC  Railway,

………………………

 

1

Name of the Claimant

:

 

2

Address in full

 

3

Name of the firm

:

 

 

4

Invoice No.

:

 

5

Railway Receipt No.

:

 

6

Cause of Claim

:

Demurrage/Wharfage/ Stacking charges

7

Grounds of appeal for Waiver

:

 

8

Date/Month of accrual

:

 

9

Accrual station

:

 

10

Accrual amount

:

 

11

Payment particulars

:

Special Remarks if any:…………………………………………………………………

…………………………………………………………………………………………..

List of documents enclosed:

1. Letter of Authority                   :       Original/Copy

2. Power of Authority                   :       Original/Copy

3. Copy of Money Receipt                     :       Original/Copy

4.Statement of Accrual                 :       Original/Copy

  

                                                                (Signature of Applicant)

 

.




Source : South East Central Railway CMS Team Last Reviewed on: 10-12-2013  


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