Which of the following is NOT a type of duty rate?

The classification of duty rates is essential for understanding how tariffs are applied to imported goods. Ad Valorem, specific, and compound are all established duty rates used in customs and trade practices.

Ad Valorem duty is calculated as a percentage of the value of the goods, meaning that the higher the value of the item, the more duty is paid. This method is widely used as it reflects the value of the merchandise being imported.

Specific duty, on the other hand, is a fixed amount applied per unit of goods, such as per kilogram or per item. This approach is straightforward and allows for predictable costs for customs duties irrespective of the value.

Compound duty combines both ad valorem and specific duties, applying a percentage based on value alongside a fixed charge. This method is utilized to ensure that both the value and quantity of the imported goods are taken into account in determining the duty.

In contrast, dynamic duty is not recognized as a standard type of duty rate in customs terminology. It may refer to changing or fluctuating rates, but this concept does not fit within the established categories of duty rates typically enforced in international trade regulations. Therefore, identifying dynamic as not being a type of duty rate demonstrates an understanding of the fundamental classifications used in customs practice.