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Waival of Demurrage and Wharfage

 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.


General Manager

Full powers

Full powers


Chief Commercial Manager

(Co-ordinating HOD in Commercial Department)




Divisional Railway Manager




CTM/Sr.DCM/DCM working as Branch Officer




DCM/DTM/Area Officer in senior scale




ACM/ATM/Area Officer in Junior scale




(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. 


Source : South Central Railway CMS Team Last Reviewed : 21-03-2014  

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