Tariff
Tariff
Tariff
A specific tariff is levied as a fixed charge per unit of imports. For example, the US government levies
a 51 cent specific tariff on every wristwatch imported into the US. Thus, if 1000 watches are
imported, the US government collects $510 in tariff revenue.
Ad valorem Tariff:
A specific tariff is levied as a fixed charge per unit of imports. ... An ad valorem tariff is levied as a
fixed percentage of the value of the commodity imported.
Compound Tariff:
Compound tariffs: Tariffs that are a combination of specific tariffs and ad valorem tariffs. For
example, a compound tariff might consist of a fixed $100 duty plus 10% of the value of every
imported car.