MODCHQ - SET UP AND MAINTENANCE Ó UNCTAD – SITE (V1.15) 10.11 Fig. 10.10  MODCHQ : Functions: Database Management: Customs Tariff: Tariff Components: General Note The  action  of  setting  up  a  General  note  is  quite  simple.  The  General  Note  is  defined  and  the effective duty rate entered in the ‘Rate’ field. A duty or tax rate does not have to prevail throughout the Tariff to make a General note worthwhile, as long as it is a common rate that is always amended at the same time whenever it applies. To change a rate is very simple, as it requires only the relevant General note to be amended to the new rate. Quotas This option allows the capture of codes and descriptions of Quotas to be entered in box 39 of the SAD.  Control  over  the  quota  option  is  activated  by  setting  the  flag  in   MODCHQCF  ‘Declaration Standards’ to ‘Yes’ . If the quota control is set to ‘No’ quota codes can still be entered, but will not be subject to any system validation. Taxation The  sub-options  allow  rules  to  be  defined  and  these  rules  can  be  used  to  modify  the  duties  and taxes calculated and attached document codes.  Extra Tariff columns above the normal maximum of  15  can  be  defined  by  using   ‘Additional  Column  Rates’.    Lists  of  commodity  codes  can  be defined for use within rules. An example of the use of a General note is as follows: If, for example, VAT is always payable at 2% throughout the Tariff, it is much more efficient to represent this tax formula as a general note, and apply that general note code to the Tariff. When  a  VAT  rate  has  to  be  changed,  for  example,  VAT  was  to  increase  to 2.5%;   ‘direct   keyed’   rates   would   all   require   amendment.   Even   using   the simplified update facilities this would be time consuming. If the 2% rate of VAT is held as a General note, however, only the General note information  itself  needs  to  be  amended  to  effect  the  change  throughout  the Tariff.