Concept:Ad valorem is a Latin term that means “according to value.”Explanation:An ad valorem duty is a tax calculated as a fixed percentage of the monetary value of the goods imported.It directly varies with the price or value of the imported item.It is not based on weight, nature, or importance of the goods.Example: If duty is 10% ad valorem, goods worth \$100 are charged \$10 duty.Answer:B. value of the goods imported