Tariffs
Ad Valorem Tariff
An import duty calculated as a percentage of the customs value of goods. It is the most common type of tariff in international trade.
What is an Ad Valorem Tariff?
An ad valorem tariff is an import duty calculated as a percentage of the customs value of goods. The term 'ad valorem' comes from Latin meaning 'according to value.' It is the most widely used tariff type both in Mexico's TIGIE schedule and the U.S. Harmonized Tariff Schedule (HTS).
How it's calculated
The formula is: Duty = Customs Value × Ad Valorem Rate. For example, if goods have a customs value of $10,000 USD and the ad valorem rate is 15%, the duty would be $1,500 USD.
Rate ranges
Ad valorem rates in Mexico's TIGIE range from 0% (exemption) to 45% for sensitive products. Products from countries with trade agreements may qualify for reduced preferential rates or 0% duty.
Examples
- Importing athletic footwear (HTS 6404.11) carries an ad valorem duty of about 20% in the U.S.
- Industrial machinery imports (HTS 8455.10) often have 0% ad valorem duty under most tariff schedules.
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Learn more→Related terms
Trade
Customs Value
The monetary amount on which import duties are calculated, determined according to the WTO Valuation Agreement with transaction value as the primary method.
ValuationGeneral Import Tax (IGI)
The main import duty paid when bringing goods into Mexico, determined by the TIGIE tariff classification code.
TariffsTariff Classification Code
An 8 or 10-digit numerical code that identifies a specific product within Mexico's tariff schedule (TIGIE), determining applicable duties and regulations.
TariffsPreferential Tariff Rate
A reduced or zero duty rate applied to imports from countries with which a free trade agreement or other preferential arrangement is in effect.
TariffsTIGIE (Mexico Tariff Schedule)
Mexico's official tariff schedule containing all tariff classification codes, descriptions, and duty rates for imported and exported goods.
