An Ad Valorem Duty is a customs charge calculated as a percentage of the imported goods’ declared value or invoice price. This type of duty varies based on the assessed value of the shipment rather than its quantity, weight, or volume.
Customs authorities use ad valorem duties to determine import taxes fairly, reflecting the actual worth of the goods. The percentage rate applied depends on the product’s classification under the Harmonized System (HS) code and the trade agreements or tariffs between countries.
