Ad Valorem Equivalent Law and Legal Definition

Pursuant to 19 USCS § 2481 (4), [Title 19. Customs Duties; Chapter 12. Trade Act of 1974; General Provisions] the term ad valorem equivalent means “the ad valorem equivalent of a specific rate or, in the case of a combination of rates including a specific rate, the sum of the ad valorem equivalent of the specific rate and of the ad valorem rate. The ad valorem equivalent shall be determined by the President on the basis of the value of imports of the article concerned during the most recent representative period. In determining the value of imports, the President shall utilize, to the maximum extent practicable, the standards of valuation contained in section 402 [19 USCS § 1401a] or 402a of the Tariff Act of 1930 (as in effect before the effective date of the amendments made by title II of the Trade Agreements Act of 1979) or in section 402 of such Act of 1930 [19 USCS § 1401a] (as in effect on the effective date of such title II amendments) whichever is applicable to the article concerned during such representation period.”