What is the Ad valorem tariff?

CA Foundation · Business Economics · PYQS · May 2025
What is the Ad valorem tariff?
(A) A. The fixed amount of money per physical unit or weight of commodity imported or exported.
(B) B. A fixed time period for tariff application per calendar year.
(C) C. The duty levied as a fixed percentage of the value of the traded commodity.
(D) D. A flat rate imposed regardless of the product's value.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. The duty levied as a fixed percentage of the value of the traded commodity.

Topics: International Trade

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