AdvaloremZölle

Advalorem Zölle, also known as an ad valorem tariff, is a type of customs duty levied on imported or exported goods based on their value. The term originates from the Latin phrase "ad valorem," meaning "according to value." When calculating the tax, it is typically applied to the cost of the goods at the destination (CIF, Cost, Insurance, Freight) or at the point of origin (FOB, Free On Board), multiplied by a specified percentage rate. Unlike specific duties (which are fixed per unit), ad valorem duties adjust with the value of the product, allowing for more equitable comparison of tax burdens across different items or price levels. Widely used in international trade, ad valorem tariffs form a core component of many nations' customs systems, particularly within the framework of the World Trade Organization (WTO). While they provide a more accurate reflection of value, they can also lead to fluctuating effective rates due to price changes or be utilized to indirectly protect domestic industries.