TAXATION MANAGEMENT USING ASYCUDA++ Ó UNCTAD - SITE (V1.15) A.9 Customs Headquarters National Configuration MODCHQCF is used to build the national taxation structure, to apply taxes with general application (independent   of   declaration   procedures   or   Commodity   Codes),   and   to   define   actions   that   the System will use to calculate taxes. This is managed through a combination of Global, Item, National Tariff and Taxation Rules. National Tariff Rules When details of a Tariff classification or Commodity Code within the National Tariff are displayed, the screen looks like the example below:                          Figure A.2: MODCBR: Reference: Customs Tariff: Commodity Code: Taxation The  column  headings  (labels)  describe  the  tax  on  the  Commodity,  and  the  boxes  contain  the matching rate of taxation.  Any combination of these taxes can be applied to a transaction - either a number of taxes, or by selecting alternatives. This is controlled through ' Taxation Rules'. Building a Taxation Structure The  example  above  shows  an  existing  taxation  structure.  'Tariff  Rules'  allow  the  building  of  the 'central  body'  of  the  Tariff,  by  defining  the  number  of  columns  in  the  Tariff,  assigning  titles  to  the columns, and setting a priority order for the order in which taxes are to be calculated. The columns in the example above were created by the following structure Figure A.3: MODCHQCF: Functions: Taxation Standards: National Tariff Taxation Columns Taxation columns define taxes and rates of tax with general application, such as Customs Duty and VAT, and can also contain taxes that modify an existing tax, i.e. where tariff preferences are given. For  example,  if  a  country  is  a  member  of  a  particular  trading  group,  (such  as Tax  '02',  'EEC',  used  in  this  example),  a  lower  rate  of  tax  may  be  payable  on imports from a country within that preference group. When a declaration is input 'Tariff Rules' recognise the country of origin, (from the declaration data), and the System is instructed to calculate the tax within the 'EEC' column, which replaces the normal rate of tax under the 'Customs Duty' column.