Description
Subtract inputWorldCost from outputPrice for positive worldValueAdded.
A specific duty is an amount per unit, while an ad valorem rate is a fraction of a valuation base. Quotas and input-output adjustments introduce additional supplied assumptions.
Subtract inputWorldCost from outputPrice for positive worldValueAdded.
When to use this tool
Use Effective Protection Value Added Base Term when you need a tariff or quota-model arithmetic component.
How to use the tool and how it works
- Enter outputPrice, inputWorldCost, outputTariff, inputTariff. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read worldValueAdded, protectedValueAdded, effectiveProtection. Use the output convention below.
Subtract inputWorldCost from outputPrice for positive worldValueAdded. Apply output and input tariffs separately for protectedValueAdded and divide their added-value change by worldValueAdded for effectiveProtection.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| outputPrice | Output Price | Required. Finite number. |
| inputWorldCost | Input World Cost | Required. Finite number; minimum 0. |
| outputTariff | Output Tariff | Required. Finite number; strictly above -1. |
| inputTariff | Input Tariff | Required. Finite number; strictly above -1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| worldValueAdded | World Value Added | Required. Finite number. |
| protectedValueAdded | Protected Value Added | Required. Finite number. |
| effectiveProtection | Effective Protection | Required. Finite number. |
{
"input": {
"outputPrice": 100,
"inputWorldCost": 60,
"outputTariff": 0.1,
"inputTariff": 0.05
},
"output": {
"worldValueAdded": 40,
"protectedValueAdded": 47.000000000000014,
"effectiveProtection": 0.175
}
}Limitations and assumptions
- Rates are fractions above -1 and the input model is supplied; negative effective protection is allowed and actual customs treatment is not determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Verify classification, origin, valuation, quota allocation, and current law with the responsible customs professional.
References
Similar or alternative tools
- Tariff Rate Quota Two Tier Cost Term
Use the smaller of quantity and quotaRemaining as inQuotaQuantity and the positive excess as outQuotaQuantity.
- Processing Trade Domestic Margin Share
Subtract importedInputs from positive exportValue for domesticValueAdded and divide by exportValue for domesticContentFraction.