top of page

Decoding Customs Jargon: 'Ad Valorem'

Demystify customs jargon one word at a time! Don't get lost in the acronyms. Our "jargon busters" explain in simple terms what important customs abbreviations and words mean.

There may be acronyms, abbreviations and rules that are hard to understand in the Customs rules, standards, and our changes. Even though we work hard to make our writing as clear as possible, there are times when you might need more information. Our "jargon busters" explain in simple terms what important acronyms mean.

The following briefly explains the most common terms buyers come across when dealing with customs, imports, and exports.

What is "Ad valorem"?

Customs Duty is a tax typically determined based on the customs value of goods. This value is usually calculated using the 'ad valorem' method, which means it is a percentage of the goods' value.

This means that a tax will be imposed by calculating a specific rate, expressed as a percentage, and applying it to the total value of the goods.

Most goods are typically subject to taxation using a similar method, although there are instances where alternative criteria, such as weight, dimensions, quantity, and other factors, may be employed.

As an example, when it comes to taxation, flour is typically subjected to a tax based on its weight, while clocks are generally taxed based on the number of units being sold.

How to Get More Support

1. If you have any questions, call our helpline at +44 79 14 650 183 or schedule a call at -> top-right corner.

2. Book Export Control Training for you and your team at

3. Download Support Guides, on-demand training and more at

About Customs Manager’s Customs & Global Trade Intelligence Services

The Premium Professional Legislative Monitoring Service (PLM) is a research and curation service which checks for legislative updates from official government websites based on the selected jurisdictions and topics. Paid Plan subscribers can access regular law change notifications to ensure they never miss a significant legal change on – a website dedicated to customs & trade intelligence. At the same time, they save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all content on the Customs Manager’s Ltd. website, including our Customs & Trade Blog on , providing vital thought leadership development services to empower them to trade effectively, efficiently and, of course, compliantly, across borders. Premium Subscribers can add jurisdictions and topics for an additional charge.

About Customs Manager Ltd.

We aim to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly wherever you want. I

Stay in Touch

· Website:

· E-Mail:

· YouTube:

· Twitter: @customsmanager

· Linked In:

Important Notice

Customs Manager Ltd. owns the copyright in this document, except for external documents and links we refer to or make available.

You are not allowed to use this information in any way that infringes its intellectual property rights. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Paid Plan subscriber to the Customs Managers’ Customs & Trade Intelligence service, also known as Professional Legislative Monitoring (PLM). As a Paid Plan subscriber, you may download and print this information which you may then use, copy or reproduce for your internal non-profit-making purposes.

However, you are not permitted to use, copy or reproduce this information to profit or gain.

In addition, you must not sell or distribute this information to third parties, not members of your organisation, whether for monetary payment or otherwise.

This information is intended to serve as general guidance and not constitute legal advice. The application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking action, consult a Customs Manager Ltd. professional.

In no circumstances will Customs Manager Ltd be liable for any decision made or action taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

2 views0 comments
bottom of page