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Ad Valorem Import Tariff

An ad valorem import tariff is a type of import duty that is calculated based on the value of the imported goods. The term "ad valorem" is Latin for "according to value." This means that the tariff rate is a percentage of the value of the goods being imported.

For example, if a country has a 10% ad valorem import tariff on cars, and someone imports a car worth $10,000, the import duty would be $1,000 (10% of $10,000). Ad valorem tariffs are commonly used to raise revenue for the government or to protect domestic industries from foreign competition. They are usually applied on a wide range of products and can vary based on the specific industry or product category.

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