Ad Valorem Equivalent
Ad valorem equivalent in Global Commerce Policy
In this regard, ad valorem equivalent is: a calculation of the level of a specific tariff, which converts a rate expressed as a fixed monetary value per product into a value expressed as a percentage of the value of the product. This gives the ad valorem tariff rate. For example, a specific tariff of one dollar levied on a compact disc worth ten dollars would give an ad valorem equivalent of 10%. The entries on trade policy in the Encyclopedia are here. On a disc worth twenty dollars, a tariff of one dollar would amount to 5%. See also compound tariff.[1]
Ad valorem equivalentin the wold Encyclopedia
For an introductory overview on international trade policy, see this entry.
Resources
Notes and References
- Dictionary of Trade Policy, “Ad valorem equivalent” entry (OAS)
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