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Ad Valorem

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Term Definition
Ad Valorem

Comes from Lat. ad valorem which means - from the cost. Are determined as a percentage of the customs value of the goods. For example, 10% of the customs value.

They are more profitable for taxing more expensive goods and less profitable for homogeneous goods. 

Customs valueit is declared by the declarant, and the information formally submitted by him must be based on reliable, quantifiable information. In reality, there may be a minus, there may be some underestimation of the customs value under the contract and, as a result, a decrease in the amount of taxes received.

Synonyms:Ad Valorem duties,Ad Valorem rate