MODCHQCF - NATIONAL CONFIGURATION Ó UNCTAD - SITE (V1.15) 8.15 Item Taxation Rules Item  taxation  rules  can  be  used  for  many  purposes  although  they  are  primarily  created  to  collect taxes  based  on  declaration  item  details.  The  ability  to  calculate  taxes  independent  of  the  normal Tariff  structure  or  Procedure  Codes  gives  extra  flexibility  in  taxation  measures.  It  suits  situations where a tax or charge is applied that is independent of Commodity Code and is collected with very few exceptions. Item taxation rules are used to activate  ‘Additional column’  taxes. These are taxes that perhaps apply  to  a  limited  range  of  Commodity  Codes  and  do  not  justify  the  creation  of  a  new  (National taxation) column throughout the full Tariff.  ‘Additional  columns’   are  also  used  where  a  country requires more than the 15 tariff/tax columns that may be created using the National Tariff Columns described in the next part of this Section. See   Section   10   of   this   Reference   Document   for   full   details   on   using   the ‘Additional Columns’  function. Item  taxation  rules  can  also  be  used  for  non-tax  purposes,  such  as  providing  additional  user defined validation controls. ‘Attached document’ codes may be added, or the system programmed through   the   taxation   rule   to   display   warning   or   advisory   messages,   or   to   stop   the   declaration processing in the case of a fatal error. Creating New Item Taxation Rules Item Taxation rules are created as for Global Tax rules. Several examples of Item Taxation follow: Example 1: An example of a simple Item rule that calculates a charge on the freight component of a CIF value i.e. on the internal and external freight expenses related to the transaction. This example charges a different rate of tax for goods received by air and sea. Also worth noting is that in this example, the tax is only charged if freight is separately   itemised   in   the   Declaration   valuation   note.   To   be   entirely practical,  in  this  case,  an  additional  control  would  be  required  to  ensure that freight costs are separately itemised on each declaration. Rule "TRANSPORT FEE"; Num01 IS ItmEfrNcy + ItmIfrNcy; If Num01 > 0 and TypProc = "4" Then   If MoTBorder = "1" Then     Action IS DoTax( "TFS" , "1" , Num01 , 2 , Num01 * 2 / 100 );   Endif;   If MoTBorder = "4" Then     Action IS DoTax( "TFA" , "1" , Num01 , 5 , Num01 * 2 / 100 );   Endif; Endif; This rule first reads and totals the contents of the Variables for External and Internal freight. If the declaration is Import 4, and the Mode of Transport (MOT)at the Border is Sea (1), then a tax of 2% of total Freight is charged. If the MOT is Air (4), then a rate of 5% of total Freight is charged. Saving New Rules is done in the same way as for  Global Taxation Rules.