Compound Duty

Summary of Compound Duty

Cross-reference: Duty

(Main Author: William J. Miller)

Compound Duty in International Trade

Meaning of Compound Duty, according to the Dictionary of International Trade (Global Negotiator): A combination of both a specific rate of duty and an ad valorem rate of duty. For example 0.5 cents per unit plus 8 per cent ad valorem. Whereas specific duties are based on factors such as weight or quantity, ad valorem duties are based on the value of the goods. See customs duty.