Ad valorem duties are best described as

Question

Quizplus · Accepted Answer

Ad valorem duties are a type of tax levied at customs that is calculated as a percentage of the assessed value of the imported good. This means that the amount of duty paid will vary depending on the value of the goods being imported. Ad valorem duties are commonly used by governments as a way to generate revenue and to protect domestic industries by making foreign goods more expensive. Option B refers to a different type of tax, a value-added tax, which is imposed on domestic production rather than imports. Option C is not a correct description of ad valorem duties.

Ad Valorem Duties Are Best Described as