# ad valorem

*Last updated: 2026-06-23*

> A freight forwarder declares a shipment at a customs value of €10,000; the applicable rate is 5 per cent – resulting in a duty of €500.

A freight forwarder declares a shipment at a customs value of €10,000; the applicable rate is 5 per cent – resulting in a duty of €500. That is the ad valorem principle in practice: the charge is assessed as a percentage of the goods' declared value rather than as a fixed amount per unit. Ad valorem is the global standard for customs duties, taxes, and many freight surcharges. Unlike specific duties – fixed per kilogramme, piece, or litre – ad valorem charges depend entirely on accurate customs valuation, making correct value declaration a core task for every freight forwarder and customs broker. The term also applies beyond customs law: ad valorem pricing appears in cargo insurance premiums and certain port or handling surcharges.

**Source:** [https://www.wcoomd.org/en/topics/valuation.aspx](https://www.wcoomd.org/en/topics/valuation.aspx)

## Quick Facts

| Property | Value |
|---|---|
| Term | ad valorem |
| Language | EN |
| Word count | 123 |
| Last updated | 2026-06-23 |
| Source | https://www.wcoomd.org/en/topics/valuation.aspx |

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*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/ad-valorem](https://www.freight-academy.com/en/glossary/ad-valorem)*

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