Close Navigation
Learn more about IBKR accounts

Compound Tariff

Trading Term

A compound tariff combines elements of both specific and ad valorem tariffs. It imposes a fixed fee per unit of the imported good, as well as a percentage of the good’s value. For instance, a compound tariff might consist of $3‍ per unit plus 10%‍ of the item’s value. This dual approach allows governments to protect domestic industries by making imported goods more expensive, while also generating revenue that adjusts with the value of the goods. Compound tariffs can be complex to administer, as they require accurate valuation of goods and precise measurement of quantities.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.