An ad valorem duty is calculated as a percentage of the relevant goods value. For customs duty, the basis is customs value, not automatically the supplier invoice total alone.[1]
Symbolically, customs value multiplied by the applicable rate gives a monetary duty amount for the declaration item. Establish classification, origin and valuation first; otherwise the seemingly simple percentage calculation is unreliable.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.