GlossaryEN1 min readUpdated: Jun 23, 2026

Ad Valorem Duty

An ad valorem duty is an import tariff assessed as a percentage of the declared customs value of the goods.

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://www.wcoomd.org/en/topics/valuation.aspx

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Definition & Explanation

An ad valorem duty is an import tariff assessed as a percentage of the declared customs value of the goods. Textiles with a customs value of €5,000 subject to a 12 per cent rate generate a customs debt of €600, regardless of weight or quantity. This method underpins most national and international tariff schedules; via HS classification, each commodity code carries a corresponding ad valorem rate. It differs from a specific duty, which applies a fixed charge per physical unit such as kilogramme or piece: ad valorem duties scale with value and therefore depend on rigorous customs valuation in line with WTO rules. Inaccurate valuation – whether overstated or understated – directly distorts the duty payable.

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Ad Valorem Duty

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ad valorem duty

Declared value

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