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Customs Glossary/Ad Valorem Duty

Ad Valorem Duty

Customs value

PL: Cło ad valorem | DE: Wertzoll

Definition

Ad valorem duty is the most common type of duty in the EU, calculated as a percentage of the customs value of imported goods. For example, a 6.5% rate means duty of EUR 650 on goods with a customs value of EUR 10,000. Customs value is determined mainly based on the transaction value (price actually paid or payable). Ad valorem duty is preferred by the WTO as the most transparent form of tariff.

Related Terms

Ad Valorem Duty — Customs Glossary | Celna24.com | Celna24.com