As an addition to duty and excise tax, imports to the United States are subject to “user fees” as well. These fees are indicated depending on the mode of transport (sea, air, rail, road) and the type of entry (formal vs. informal). MPF is considered to be one of these “user fees.”
What is MPF?
MPF stands for Merchandise Processing Fee and is implemented by the U.S. Customs and Border Protection (CBP) services for most imports into the U.S. through all modes of transport. This is imposed to offset salary-related expenses, as well as other fees incurred during the processing of imports, and release of merchandise into the United States.
How is MPF calculated?
The MPF is calculated at 0.3464%. The minimum amount is $26.22, with a maximum amount of $508.70. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges.
For informal entries (imported via mail), MPF is a set fee, which ranges between $2 to $9 per shipment.
Can MPF fees be avoided?
You can be considered MPF- exempt if your import meets ‘preferential status’ under almost all U.S. trade programs and deals.
Exempt from MPF:
- African Growth and Opportunity Act (AGOA)
- Caribbean Basin Economic Recovery Act (CBERA)
- Caribbean Basin Trade Partnership Act (CBTPA)
- Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)
- Generalized System of Preferences (GSP)
- North American Free Trade Agreement (NAFTA)- now USMCA
- Australia Free Trade Agreement (AUFTA)
- Bahrain Free Trade Agreement (BHFTA)
- Chile Free Trade Agreement (CLFTA)
- Colombia Trade Promotion Agreement (COTPA)
- Israel Free Trade Area Agreement (ILFTA)
- Korea Free Trade Agreement (KORUS)
- Oman Free Trade Agreement (OMFTA)
- Panama Trade Promotion Agreement (PATPA)
- Peru Trade Promotion Agreement (PETPA)
- Singapore Free Trade Agreement (SGFTA)
Not Exempt from MPF
- Jordan Free Trade Area Agreement (JOFTA)
- Morocco Free Trade Agreement (MAFTA)