Incoterms 2020
Ad Valorem
A Latin term meaning 'according to value,' used for duties, taxes, or charges calculated as a percentage of the declared value of goods in customs, insurance, or freight contracts.
Quick answer: A Latin term meaning 'according to value,' used for duties, taxes, or charges calculated as a percentage of the declared value of goods in customs, insurance, or freight contracts.
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Quick answer
A Latin term meaning 'according to value,' used for duties, taxes, or charges calculated as a percentage of the declared value of goods in customs, insurance, or freight contracts.
Why it matters
Ad Valorem matters because it supports clear communication in Incoterms 2020 contexts for Freight Forwarders, Supply Chain Managers, and Customs Brokers. It also connects to aviation training and exam language such as FIATA Diploma, CILT Certification, and IATA DGR.
Editorial context
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Definition
A Latin term meaning 'according to value,' used for duties, taxes, or charges calculated as a percentage of the declared value of goods in customs, insurance, or freight contracts.
Operational example
An ad valorem duty of 5% was applied to the invoice value of the imported goods.
Localized term
Ad Valorem
Localized example
Auf den Rechnungswert der importierten Waren wurde ein ad valorem Zoll von 5% erhoben.
Definition language
English reference definition
Source
Incoterms 2020 (ICC), FIATA, IATA DGR, WCO
Exam relevance
- FIATA Diploma
- CILT Certification
- IATA DGR
Target audience
- Freight Forwarders
- Supply Chain Managers
- Customs Brokers
