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AD VALOREM EQUIVALENT (AVE)

An ad valorem equivalent is the equivalent in percentage terms of a specific, mixed, compound or other duty containing a specific element. Ad valorem equivalents are calculated for customs duties that are not ad valorem. The AVE is calculated from the actual duty collection or from an historical unit value of imports. For example, the AVE of a specific duty of $1.00 per KG levied on a product with a unit value of $10.00 per KG is equal to 10% ($1.00/$10.00).

An AVE can be global or bilateral. Global AVEs can be calculated from the unit value of imports from a group of countries. The group can be all partners, WTO Members, MFN origins, etc. Bilateral AVEs are calculated from the unit values of imports of individual trading partners.