ad valorem /ad vlrm/

Adverb (of the levying of tax or customs duties) In proportion to the estimated value of the goods or transaction concerned
Why are the rules on custom valuation only relevant when referred to ad valorem duties? - For specific duty, customs value of the good does not need to be determined, as the duty is not based on the value of the good - For ad valorem duty, customs value depends on the value of a good WTO instruments: - Article VII of the General Agreement on Tariffs and Trade (GATT), 1994 - Agreement on Implementation of Article VII of the GATT, 1994 (Usually referred to as the Agreement on Customs Valuation or ACV for short) - Uruguay Round Ministerial Decision Regarding Cases where Customs Administrations have Reasons to Doubt the Truth or Accuracy of the Declared Value