The Merchandise Processing Fee (MPF) is a fee imposed by U.S. Customs and Border Protection (CBP) to offset the cost of salaries and other expenses incurred in the processing of imports and release of merchandise into the United States.
For formal entries (merchandise value exceeding $2,500 USD) MPF is assessed on an ad valorem (according to value) basis, at 0.3464% of the entered value; minimum $26.79 USD, maximum $519.76 USD. For informal entries (merchandise value less than $2,500 USD) a flat MPF fee of $2.14 USD applies. The fee is paid at time of import and is assessed on the customs entry along with any applicable duties/fees.
To calculate MPF, multiply the shipment value by 0.3464%. For example, MPF on a shipment valued greater than $2,500 USD but less than $7,400 USD will be assessed at the minimum fee of $26.79. The maximum MPF per shipment is $519.76 (shipments valued at $144,000 USD or more will be assessed the maximum MPF).
Imports qualifying for preferential status under NAFTA and some other preferential trade agreements are exempt.
To qualify for the MPF exemption, the good must:
Importers should ensure MPF is included in landed cost calculations. Unless exempted, MPF is applicable even if the imported goods are duty-free.
In Depth Topics
Tip #31 – Act Quickly to resolve non-compliance issues and avoid increasing fines
Most monetary penalties issued by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System (AMPS) escalate with repetition.