• Document Number：Order No. 588 of the State Council
• Area of Law： Contract Traffic and Transport
• Level of Authority： Administrative Regulations
• Date issued：01-08-2011
• Effective Date：07-01-1987
• Issuing Authority： State Council
• Status： Effective

Detailed Rules for the Implementation of Railway Freight Transportation Contracts
(Approved by the State Council on November 8, 1986 and issued by the Ministry of Railways on December 1, 1986, revised in accordance with the Decision of the State Council on Abolishing and Amending Some Administrative Regulations by the Order No. 588 of the State Council on January 8, 2011)
Chapter I General Provisions
Article 1 These Detailed Rules are developed in accordance with relevant provisions of the Economic Contract Law of the People's Republic of China.
Article 2 The term “railway freight transportation” as mentioned in these Detailed Rules refers to the use of railways in operation as published by the Ministry of Railways of the People's Republic of China to transport cargo.
These Detailed Rules shall apply to the freight transportation contracts concluded between railway transportation departments and such legal persons as enterprises, rural economic organizations, state organs, public institutions, and social organizations.
These Detailed Rules shall apply, mutatis mutandis, to the freight transportation contracts concluded between self-employed households or individuals and railway transportation departments.
Provisions governing military transportation, international multimodal transportation, and through freight transportation between railways and waterways, highways, aviation, and pipelines shall be separately developed.
Article 3 To transport cargo through railways, a consignor shall conclude a freight transportation contract with the carrier.
Chapter II Conclusion of a Freight Transportation Contract
Article 4 For the transportation of bulk commodities, where conditions permit, freight transportation contracts may be concluded on an annual, semiannual, or quarterly basis or with a longer term; for other full-load cargo transportation, transportation contracts shall be concluded on a monthly basis. Transportation contracts concluded on a monthly basis may be replaced with monthly wagon requisition plans.
In the transportation of break bulk cargo or containerized cargo, the freight bill shall serve as the transportation contract.
Article 5 A freight transportation contract concluded on an annual, semiannual, quarterly, or monthly basis shall be established immediately upon signature by both parties to the contract. In the consignment of cargo, the consignor shall also present the carrier with a freight bill as a part of the transportation contract.
The transportation contracts on break bulk cargo or containerized cargo shall be established after the carrier affixes the date stamp of the station to the freight bill presented by the consignor.
Article 6 A freight transportation contract concluded on an annual, semiannual, quarterly, or monthly basis shall specify the following basic items:
(1) Names of the consignor and the consignee.
(2) Departure station and destination station.
(3) Name of commodities.
(4) Weight of commodities.
(5) Category and quantity of vehicles.
(6) Liabilities for breach of contract.
(7) Other matters as agreed on by both parties.
Article 7 A freight bill shall specify the following items:
(1) Names and detailed addresses of the consignor and the consignee.
(2) Departure station, destination station, and the competent railway administration of the destination station.
(3) Name of commodities.
(4) Package and label of commodities.
(5) Quantity and weight (including the weight of packages).
(6) Date of acknowledgment of consignment.
(7) Delivery deadline.
(8) Freight charges.
(9) Type and license plate number of wagons.
(10) Sealing numbers of sealing wagons and containers.
(11) Other matters decided by both parties through consultation.
Chapter III Performance of a Freight Transportation Contract
Article 8 A consignor shall assume the following obligations:
(1) The consignor shall deliver the consigned cargo to the carrier according to the time and requirements as agreed on in the freight transportation contract.
(2) The cargo needing packaging shall be packaged according to the national packaging standards or ministerial packaging standards (professional packaging standards), or where there is no unified packaging standard, be packaged according to its nature by following the principle of ensuring their transportation safety, and indicative marks for packaging, storage and transportation shall be affixed in accordance with relevant provisions of the state, and the weight of bulky cargo shall be indicated on each package.
(3) For cargo required to be transported with a certificate, the consignor shall produce the certificate required.
(4) For full-load cargo, the consignor shall provide the wagon equipment and materials as required for loading such cargo and materials for reinforcement of the cargo.
(5) For goods loaded under the organization of the consignor, the consignor shall check the integrity and cleanliness of the wagon before loading, load the goods according to the prescribed technical loading requirements, complete the loading within a prescribed time limit, or deliver the wagon to the transfer location within the prescribed duration of stay.
(6) For goods needing special care in transportation, the consignor shall dispatch special persons to escort such goods in transportation.
(7) The consignor shall pay the carrier the prescribed freight charges.
(8) The consignor shall, in a timely manner, send to the consignee the voucher to claim goods and notify the consignee of claiming such goods at the destination station.
(9) For the value-insured transportation of goods, the consignor shall provide the list of goods declaration prices and pay the goods insurance bills.
(10) For goods that must be insured as required by the state, in the consignment, the consignor shall buy the freight transportation insurance. For goods with the value of 700 yuan or more per piece or non-packed goods with the value of 500 yuan or more per ton, an integrated compensation system of insurance and transport shall be carried out, in which the consignor may buy the freight transportation insurance in consignment. The specific measures shall be separately developed.
Article 9 A carrier shall assume the following obligations:
(1) The carrier shall, in accordance with the time, quantity of goods and vehicle type as agreed on in the freight transportation contract, allocate clean wagons in good condition.
(2) For goods that are loaded and unloaded in a public loading and unloading place of the station, the carrier shall organize the loading and unloading, except for those otherwise specified.
(3) The carrier shall deliver the goods carried by it to the consignee in good shape within the time limit and at the destination station as agreed on in the contract.
(4) For goods that are loaded or unloaded under the organization of the consignor or consignee, the carrier shall transfer the wagon to the location of loading or unloading or the transfer location as agreed on.
(5) For goods that are unloaded under the organization of the carrier, the carrier shall issue to the consignee a notice on urging the consignee to claim the goods.
(6) If the carrier finds any overpaid freight charges, it shall return them to the consignor or consignee.
Article 10 A consignee shall assume the following obligations:
(1) The consignee shall pay up the freight charges that are unpaid or underpaid at the departure station and that are incurred during the transportation period, and the advances incurred due to the consignor's liabilities.
(2) The consignee shall claim goods in a timely manner and within the prescribed time limit for temporary storage free of charge, remove the goods out of the station.
(3) For goods that are to be unloaded under the organization of the consignee, the consignee shall, within the prescribed time limit for unloading, unload the goods or send the wagon to the transfer location within the prescribed duration of stay.
(4) For goods that are to be unloaded under the organization of the consignee, after unloading is completed, the consignee shall clean the wagon, close doors, windows, and side boards (covers or valves for special-purpose vehicles), and brush and sterilize the wagon if required.
Article 11 Where a consignor consigns the transportation of the removal goods or luggage of an individual with a value of more than 30 yuan per ten kilos, the consignor may declare the price and require value-insured transportation. When the carrier puts such goods or luggage to value-insured transportation, the carrier shall collect insurance charges of such goods or luggage as required.
Article 12 When a consignor consigns goods to a carrier and when the carrier delivers goods to the consignee, they shall conduct acceptance checks. If it is found that there is any abnormality in the goods (in terms of sealing, goods loading conditions, tarpaulin status, or the prescribed marks if the goods are loaded under the organization of the consignor) or the goods are inconsistent with the records of the bill of lading, in the acceptance of consignment, the carrier shall not accept such goods until the consignor makes improvements; and during delivery, the consignee shall immediately raise an objection to the carrier. If the consignee raises no objection when accepting the goods, it shall be deemed that the transportation contract has been performed.
For goods that are to be loaded under the organization of the carrier and to be unloaded in the special railway line or special railway, the handover acceptance check shall be conducted by taking the methods as agreed on by the carrier and the consignee.
Article 13 When a carrier cannot find a consignee or a consignee refuses to receive goods, except that the goods are inappropriate to be reserved for a long term, the carrier shall notify the consignor within 30 days from the next day after the notice on urging the receipt of the goods is issued or within three days after the consignee refuses to receive the goods. The consignor shall, within five days from the next day after receiving the notice, put forward a solution and make a reply to the carrier. When the transportation contract still fails to be performed within the prescribed time limit, the carrier shall have the right to dispose of the goods in accordance with relevant provisions.
When the consignee refuses to receive the goods, it shall submit a written explanation.
Article 14 Where there is any obstruction to freight transportation due to a natural disaster, a carrier shall take the measure of taking a detour or reloading after unloading. Where due to the special nature of the goods, taking a detour or reloading after unloading is to cause freight losses, the carrier shall contact the consignor or consignee and require the latter to put forward a solution within the required time limit. Where the consignor or consignee fails to make a reply within the prescribed time limit, the carrier may dispose of such goods in accordance with Article 13 of these Detailed Rules.
Chapter IV Modification or Termination of a Freight Transportation Contract
Article 15 Any modification of a freight transportation contract must be within the prescribed scope of modification and with the consent of both parties.
Article 16 Due to any special reason and with the consent of the carrier, a consignor or consignee may, in batches, alter the destination station or consignee of the goods that have been accepted for consignment at a transit station or the destination station; however, under any of the following circumstances, such alteration is not permitted:
(1) There is any violation of any law or administrative regulation of the state or any restriction on material flow or transportation.
(2) The altered time limit for freight transportation is longer than the permitted time limit for freight transportation.
(3) The alteration is made to a portion of goods in the same batch.
(4) The destination station is altered for the second time.
Article 17 Before goods are delivered, a freight transportation contract may be terminated with the consent of both parties.
Chapter V Liabilities for and Handling of Breach of a Freight Transportation Contract
Article 18 The liabilities of a carrier are as follows:
(1) Where the carrier fails to perform the freight transportation contract due to any of the following reasons, the carrier shall pay the consignor the liquidated damages of 50 yuan per wagon:
(a) The carrier fails to allocate enough wagons according to the ten calendar day loading plan and the wagon type and model as agreed on, except that wagons are made up in the current month or the alteration of wagon type and model has been approved by the consignor.
(b) The carrier fails to send wagons to be loaded by the consignor to the loading place at the agreed time, causing the failure to complete the loading in the current month.
(c) The integrity and cleanliness of the wagons allocated do not meet the requirements of the goods carried.
(d) The loading is ceased for the carrier's liability or the cease of loading makes the consignor fail to move the goods into the loading place of the station on schedule.
(2) From the acceptance of consignment of goods to the delivery of such goods to the consignee or the completed handling of the goods in accordance with relevant provisions, in the case of any loss, shortage, deterioration, contamination, or damage of the goods, the carrier shall make compensation in accordance with the following provisions:
(a) For goods that are covered by the freight transportation insurance, the carrier and the insurance company shall make compensation as required.
(b) For goods under value-insured transportation, the carrier shall make compensation at the declared price; however, where the actual losses of the goods are lower than the declared price, compensation shall be made according to the actual losses.
(c) Except for losses as prescribed in the aforesaid items (1) and (2), the carrier shall make compensation according to the actual losses of the goods. The method for calculating the amount of compensation shall be separately provided by the Ministry of Railways in consultation with the State Bureau of Commodity Prices and the State Administration for Industry and Commerce.
(3) In the case of the loss, shortage, deterioration, contamination, or damage of the goods due to any of the following reasons, the carrier is not liable for compensation.
(a) Force majeure.
(b) Fragmentation, corrosion, decrement, deterioration, or spontaneous combustion that occurs due to the nature of the goods.
(c) Reasonable loss of the goods as provided by the competent national authority.
(d) Fault of the consignor, the consignee, or the escort person dispatched.
(4) Where the goods are delivered to a wrong destination station or a wrong consignee at carrier's fault, the carrier shall transport such goods to the destination station as agreed on in the contract and deliver them to the actual consignee free of charge.
(5) Where the carrier fails to deliver the goods to the destination station within the prescribed time limit, the carrier shall pay the consignee the liquidated damages that are 5% to 20% of the freight charges it collects from the consignee.
(6) If the consignor or consignee proves that the loss is actually caused by an intentional conduct of the carrier, the carrier shall pay for the actual loss as required and in addition, the administration organ for contracts shall impose a fine that is 10% to 50% of the loss incurred by the carrier on the carrier.
Article 19 The liabilities of a consignor are as follows:
(1) Where the consignor fails to perform the freight transportation contract due to any of the following reasons, the consignor shall pay the carrier the liquidated damages of 50 yuan per wagon:
(a) The consignor fails to put forward a ten calendar day loading plan within a prescribed time limit, causing the carrier's failure to allocate wagons (except that the carrier makes up wagons in the current month), or presents a daily wagon requisition plan instead of following the ten calendar day loading plan.
(b) Where the unloading is organized by the consignee and the unloading is delayed or line is occupied for the consignee's fault, which affects the carrier's allocation of empty wagons to the loading place or loading with the designated use of empty wagons unloaded by the entity and thus results in the failure to fulfill the loading plan.
(c) The consignor cancels transportation before the acceptance of consignment.
(d) The consignor has temporary unplanned freight transportation, causing the carrier's breach of contract and frustration of other freight transportation contracts.
(2) Where the means of transport, equipment or a third party's goods are damaged due to any of the following reasons, the consignor shall make compensation according to the actual losses:
(a) The consignor conceals or misstates the name or weight of the goods.
(b) There is any defect in the packing of the goods, which cannot be identified exteriorly or the indicative marks for packaging, storage, and transportation are not shown in the goods packages in accordance with relevant provisions of the state.
(c) Where the consignor organizes the loading, reinforcement materials do not meet the prescribed conditions or violate the provisions on loading, which cannot be identified in the handover.
(d) The damage is caused at the escort person's fault.
Article 20 Where the means of transport, equipment or a third party's goods are damaged due to reasons of a consignee, the consignee shall make compensation according to the actual losses.
Article 21 For a freight transportation contract under any of the following circumstances, the carrier or consignor may be exempted from liability:
(1) The evacuation and delivery of wagons are affected due to force majeure or any major accident occurring on the railway or the loading is affected because of a major accident or power failure in the enterprise for more than 24 hours.
(2) The loading is ceased in accordance with the written request of the competent administrative organ of the state, province, autonomous region, or municipality directly under the Central Government.
(3) The carrier or consignor fails to complete the number of wagons since they organize heavy and light loading or the tonnage of goods has been completed.
(4) The carrier or consignor fails to pick up wagons on schedule or loads less goods due to the blockage of vehicles at sea ports or frontier ports.
Article 22 The time limit for mutually claiming for compensation or refunding and supplementing charges between the carrier and the consignor or consignee is 180 days. (The time limit for requiring the railway to pay the liquidated damages for expiry of the time limit for delivery is 60 days.)
The time limit in which the consignor or consignee claims compensation against the carrier or requires the carrier to refund freight charges shall be calculated by commencing from the following date:
(1) In the case of the loss, shortage, deterioration, contamination, or damage of the goods, the commencing date shall be the next day after the station hands over the freight transportation records.
(2) Where the goods are all lost and there is no freight transportation record, the commencing date shall be the 16th day after the expiry of the time limit for delivery; however, for fresh and live goods, the commencing date shall be the next day after the expiry of the time limit for delivery.
(3) Where liquidated damages for the expiry of the time limit for delivery of the goods are required, the commencing date shall be the next day after the delivery of the goods.
(4) Where the freight charges are overpaid, the commencing date shall be the next day after the collection of such expenses.
The time limit in which the carrier claims compensation against the consignor or consignee or subsequently collects freight charges shall be calculated from the next day after the losses are incurred or the freight charges are underpaid.
Article 23 Where the carrier and the consignor or consignee raise a claim for compensation against each other, the claim shall be handled and the compensation claimant shall be replied within 30 days from the next day after receipt of the written claim for compensation (60 days for goods transported across two or more railway administrations).
Where the party claiming for compensation has different opinions upon receipt of the reply of the counter party, the party claiming for compensation shall present such opinions within 60 days from the next day upon receipt of the reply.
Article 24 For any dispute over a freight transportation contract, the carrier shall negotiate with the consignor or consignee for settlement. Where they fail to reach a consensus upon negotiation, either party may apply to the administrative organ of contracts for mediation or arbitration or directly institute a lawsuit in the people's court.
Chapter VI Supplementary Provisions
Article 25 These Detailed Rules shall be subject to interpretation by the Ministry of Railways.
Article 26 These Detailed Rules shall come into force on July 1, 1987.