ABSTRACT
All goods imported into the United States are subject to duty or duty-free entry, depending on their classifi cation under the applicable tariff schedule and their country of origin. For dutiable products, three different methods are used to levy tariffs:
1. Ad valorem duty: The duty levied is a percentage of the value of the imported product. It is the type of duty most often applied. An example would be a 2 percent ad valorem on imports of leather shoes. The duty obligation is proportional to the value of the dutiable cargo and bears no relation to the quantity imported.
