Merchandise Processing Fee Increase
Staff | M.E. Dey & Co.
Most shipments entering the U.S. are subject to a Merchandise Processing Fee (MPF), which is a U.S. Customs and Border Protection (CBP) processing fee, assessed in addition to import duties. On October 1, 2019, CBP increased the MPF minimum and maximum amounts.
The MPF is an ad valorem fee of .3464 % assessed on dutiable and non-dutiable goods entering the U.S. and includes minimum and maximum amounts. The October 1st change only increased the minimum and maximum amounts of the MPF on Formal Entries; having an entered value of $2,500 or more. The update increased the minimum charge from $26.22 to $26.79 and maximum from $508.70 to 519.76 per entry. Informal Entries, those with an entered value under $2,500 but over $800, that are electronically submitted, are charged a flat $2.14 MPF per entry. The fee is payable at the time of import and is assessed on the import entry along with any applicable duties.
Certain Free Trade Agreements (FTAs), e.g. NAFTA and DR-CAFTA, exempt the MPF fee for qualifying goods. Additionally, Section 321 informal entries, with a value not exceeding $800, are not subject to the MPF fee.
The MPF is required by the Code of Federal Regulation, Title 19 §24.23(b) and is intended to offset the costs of CBP salaries and other administration expenses associated with the processing of imported goods.