MPF vs HMF: the MPF is charged on every formal and informal entry, whatever the mode; the Harbor Maintenance Fee is charged only on cargo unloaded from a vessel at a US port, so air cargo pays MPF but no HMF.
What is the Merchandise Processing Fee (MPF)?
The Merchandise Processing Fee (MPF) is a customs user fee set by 19 U.S.C. 58c and 19 CFR 24.23. It is charged on the goods, not the freight: the base is the customs value of the merchandise determined under 19 U.S.C. 1401a, the same value duty is assessed on, which leaves out the international freight and insurance. The broker reports it on the entry summary (CBP Form 7501) and the importer of record pays it with the duty deposit.
How the MPF is calculated
- Formal entries: an ad valorem fee of 0.3464 percent of the value, with a minimum and a maximum per entry (19 CFR 24.23(b)(1)). A surcharge applies if the entry is filed manually rather than electronically
- Informal entries: a flat fee, lower for automated entries than for manual ones or entries prepared by CBP (19 CFR 24.23(b)(2))
The 0.3464 percent rate stays the same, but the minimum, maximum and informal fees are adjusted for inflation every fiscal year. CBP announces them in the Federal Register at least 60 days before October 1 (19 CFR 24.23(d)). The adjusted amounts for fiscal year 2027, in force from October 1, 2026, are in CBP Dec. 26-14; the customs clearance service page lists the current figures.
Exemptions
Originating goods entered under most U.S. free trade agreements are exempt from the MPF, including USMCA and the agreements with Korea, Singapore, Chile and Australia, and some products of Israel and Caribbean Basin countries qualify too (19 CFR 24.23(c)). The exemption applies only when the free trade agreement claim is made on the entry. Goods from India, China, Vietnam and most other Asian origins have no such agreement with the United States and pay the MPF.
What importers get wrong
- Leaving the MPF out of the landed-cost calculation: on a high-value entry it reaches the maximum, and it applies to duty-free goods too
- Splitting one shipment into many entries: each formal entry pays at least the minimum
- Confusing it with the Harbor Maintenance Fee, which applies only to ocean cargo
Estimate the duty for an HTS code and origin with the tariff simulator, then add the MPF and, for ocean cargo, the HMF.
Related terms
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