Ad Valorem Duty
Ad valorem is a Latin term meaning "according to value." In logistics and trade, it refers to a method of calculating duties, taxes, or charges based on the value of goods. Ad valorem rates are expressed as a percentage of the value, ensuring that higher-valued items incur higher fees.
Related glossary terms
Ad Valorem
Ad valorem means according to value in Latin. It describes duties and freight charges set as a percentage of goods value in trade, as with most import tariffs.
Duty
Duty is a government tax applied to imported goods, based on HS classification, country of origin, and value. Learn types, calculation, and who pays the duty.
Harmonized System (HS) code
Harmonized System (HS) code is an internationally standardized product classification system used by customs authorities to apply tariffs and collect trade…
Customs broker
Customs broker is a licensed professional who clears shipments through customs on behalf of importers. Learn services, licensing rules, and when to hire.
