Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the value of steel.This is an example of a (an):
A) Specific tariff
B) Ad valorem tariff
C) Compound tariff
D) Tariff quota

Question

Quizplus · Accepted Answer

A compound tariff is a combination of a specific tariff (a fixed fee per unit, such as $20 per ton) and an ad valorem tariff (a percentage of the value, such as 5% of the value of steel).

Suppose an Importer of Steel Is Required to Pay a Tariff