Ad Valorem
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 Duty
Ad valorem duty is a customs fee set as a percentage of a shipment's value. Higher-value goods pay more, directly affecting the total landed cost for importers.
Ad Valorem Freight
Ad valorem freight is a shipping charge based on cargo value rather than weight. It applies to high-value goods where value better reflects the carrier's risk.
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…
