The availability of alternative definitions of "price" such as FAS, CIF, and FOB creates complications regarding the administration of the _____ tariff.
A) ad valorem
B) generic
C) export
D) specific
E) prohibitive

Question

Quizplus · Accepted Answer

Ad valorem tariffs are based on the value of goods, and the use of different price definitions (FAS, CIF, FOB) can complicate the calculation of these tariffs since the valuation of goods can significantly vary depending on the definition used.

The Availability of Alternative Definitions of "Price" Such as FAS