TAXATION MANAGEMENT USING ASYCUDA++ Ó UNCTAD - SITE (V1.15) A.22 The Rule is written in MODCHQ, under ‘Functions’, ‘Database Management’, ‘Tariff’, ‘Rule’ and saved. The rule is  ‘Inserted’ by adding the rule name in the  ‘Rule’  field  on  the  Commodity  Code Update screen. Tax Rules in Customs Procedure Codes In a similar manner to Rules attached to the Commodity Code, you can write Rules to modify the means of calculating taxation or the amounts of taxation according to specific CPCs. Note:  This is the normal method of implementing reduced rates of taxation on goods processed under concessional CPCs. The Rule is written in MODCHQ, under ‘Functions’, ‘Database Management’, ‘Tariff’, ‘Rule’  and saved. The rule is ‘Inserted’ by adding the rule name in the ‘Rule’ field on the CPC Update screen. Tax Rules used with Agreement codes Agreements can be used in two different ways to achieve different types of relief. General - If the relief is available to certain Companies irrespective of the CPC, an appropriate rule can be inserted in the Agreement for the relief to be granted. Specific  -   If   a   relief   under   a   CPC   Additional   Code   is   to   be   limited   to   certain   Companies   or Commodities  then  the  Agreement  record  is  set  up  in  a  different  way.  No  rule  is  included  in  the Agreement but the Agreement itself is linked to the Additional Code that contains the rule giving the relief. The Additional Code record has an Agreement box ‘Yes/No’ box. The Agreement record has a box to  insert  the  name  of  the  appropriate  Additional  Code.  Only  if  the  importer  requests  the  relief  by declaring the Additional Code does the system check that the importer or goods are eligible for that relief.  If  they  are  not,  the  system  will  not  accept  the  Additional  code  declared  and  gives  an  error message that the Company or Commodity are not authorised to receive the relief. Tax Rules in Countries and Preference Codes In  a  similar  manner  to  Rules  attached  to  Commodity  Code  you  can  write  Rules  to  modify  the means   of   calculating   taxation   or   the   amounts   of   taxation   according   to   specific   Country   or Preference Codes. The Rule is written in MODCHQ, under ‘Functions’, ‘Database Management’, ‘Tariff’, ‘Rule’ and saved. The rule is ‘Inserted’ by adding the rule name in the  ‘Rule’ field on the Preference Code Update screen. The  normal  method  for  dealing  with  preferences  is  to  set  up  a  tariff  column  in MODCHQCF.  These  options  in  Country  or  preference  code  should  be  used only in special circumstances were a very simple preference regime is involved. An example of this would be a VAT relief that is available only to registered Companies. If a rule exempting VAT were inserted in to the Agreement then no matter which Procedure code was used, a Company and Commodity included in  the  Agreement  would  be  relieved  of  VAT.  This  is  because  no  link  to procedures  is  defined  and  the  system  checks  the  Agreement  table  for  all declarations to check if the importer is eligible for some sort of relief.