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Ad Valorem Equivalent

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

  1. Dictionary of Trade Policy, “Ad valorem equivalent” entry (OAS)

See Also


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