Definitions for "Ad valorem equivalent"
The ad valorem tariff that would be equivalent, in terms of its effects on trade, price, or some other measure, to a nontariff barrier.
specific duty expressed in terms of a percentage of the value of the product in question. For example, a duty of $5 per ton on a product valued at $50 per ton has an A YE of 10 percent. When tariff negotiations are conducted on a percentage-reduction basis, AVEs must be calculated in order to permit proportional cuts in specific duties
The ad valorem tariff comparable to a non-tariff barrier, such as a quota, in terms of its effects on trade and/or price.