TAXATION MANAGEMENT USING ASYCUDA++ Ó UNCTAD - SITE (V1.15) A.6 Steps in Building Taxation Controls To build the national taxation structure and system taxation management controls, you first need ·     All Customs Tariff files installed and ·     An understanding of how ASYCUDA++ 'Rules' work The steps are: 1.     Determine the best approach for implementing and displaying the various taxes, e.g. within the normal tax columns, or as an ‘additional column’¹; 2.     Create   the   taxation   structure   that   is   displayed   as   tax   columns   against   each Commodity Code; 3.     Write Taxation Rules to 'activate' and calculate the taxes; 4.     Define the Tax Base for values by using Valuation Rules; 5.     Define any General Application Rules; 6.     Insert rates of tax into the taxation structure ('columns'). Steps 1 to 5 are managed in  MODCHQCF and step 6 in  MODCHQ. Additional columns are set up in  MODCHQ but activated through MODCHQCF. 'Rules' - an Overview In  building  an  ASYCUDA  ++  System  to  meet  the  needs  of  a  country's  own  particular  taxation regime, specific instructions are written to the System files - these System instructions are called 'rules'. Rules are written in a simple computer programming language that is called SCTL  (‘Specific Customs  Taxation  Language’).  The  rules  are  all  written  in  a  similar  style,  (using  SCTL),  but  are used for different purposes in controlling the actions of the System. The main groups are: ·     Tariff  Column  Rules  -  Linked  to  taxation  columns  in  the  Tariff.  They  define  the  conditions where the tax is to apply, the tax basis and rate, and the action to be performed, such as tax calculation or modification of an existing tax. ·     Valuation Note Rules  - Used to construct or calculate the value tax base (Customs Value) for the purpose of tax calculations. Data taken from the declaration Valuation Note is used in the calculations. Valuation Rules are also used to apportion freight and insurance charges across declaration item lines. ·     General Application Rules - Used to define taxes to be applied at the highest level, i.e., taxes usually   independent   of   any   declaration   procedure   or   commodity   classification.   (Computer processing fees are a good example.)  There are 2 sorts, Global and Item Rules ·     Special Case MODCHQ Rules – Used to deal with special taxation cases or tax reliefs. Using Rules Rules  are  processing  instructions  for  the  System.  Rules  are  entered  through  the  Rule  Editors  in Taxation, Valuation Note or Tariff, in   MODCHQ and   MODCHQCF.  The  Rule  Editors  features  an automatic syntax check when a new Rule is input or an existing Rule modified.                                                 1 See Section 10 of the Reference Document, ‘Set up and maintenance’, for a full explanation of the function of additional columns.