Ad valorem duty
Also called: percentage duty
A duty expressed as a percentage of the customs value, such as 4.5 percent. It is the most common form of tariff in the EU, Türkiye, the UK and the US.
In practice
Because it scales with value, every element that is added to or deducted from customs value changes the duty proportionally.
EU
Türkiye
USA
UKRelated terms
- Customs duty
- A tax levied on goods when they cross a customs border, most often on import. It is calculated from the tariff classification, the origin and either…
- Specific duty
- A duty expressed as a fixed amount per unit of quantity, for example per kilogram, per litre, per head or per pair. Specific duties are frequent for…
- Compound duty
- A duty combining an ad valorem and a specific element, for example a percentage plus an amount per 100 kg, sometimes with a minimum or maximum. EU…
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…