Ad Valorem Equivalent


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Ad Valorem Equivalent

In international commerce, a tax on an import that is expressed as a percentage of the value of the import. It is applied during a tariff adjustment. See also: Ad valorem tax.
References in periodicals archive ?
Known as ad valorem equivalents (AVE), they convert specific duties into ad valorem terms because members, including the EU, have a substantial number of their tariff lines expressed as specific duties.
* Data sources, a glossary and methodology outlining the calculation of ad valorem equivalents and to different aggregation methods for tariff averages round out the publication.
Members of the World Trade Organisation have agreed to settle a formula for calculating how to turn import tariffs which have a specific value into a percentage value of the overall value of the product, known as ad valorem equivalents.