Combination Tariff

A tariff that combines an ad valorem tariff and a specific tariff.

Suppose Japan exports 100,000 Toyota Corollas to the United States. If the ad valorem tax imposed by the United States is 2% of the value of the good that is being imported and the specific tariff is US$5.00 per unit sold, the combination tax that Japan would have to pay is US$502,000.