CARM: What all importers need to know about CARM

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Terminology

H

Harbor Maintenance Fee

A fee assessed by U.S. Customs and Border Protection (CBP) on marine cargo imports arriving into the United States. It is assessed on an ad valorem (according to value) basis at a rate of 0.125% of the entered value.

The Harbor Maintenance Fee (HMF) is a fee assessed by U.S. Customs and Border Protection (CBP) on cargo imports arriving into the United States via the marine mode of transport, i.e. ocean freight.

The fee is also assessed on admissions into Foreign Trade Zones (domestic or imported) in the USA. At this time, the fee only applies to cargo on vessels docking in the United States – marine cargo which docks in Canada and enters the USA via truck/rail is not subject to HMF.

U.S. Customs deposit the HMF collections into the Harbor Maintenance Trust Fund. These funds are made available, subject to appropriation by Congress, to the Army Corps of Engineers for the improvement and maintenance of U.S. ports and harbors.

HMF is assessed on an ad valorem (according to value) basis at a rate of 0.125% of the entered value. There is no minimum or maximum fee. The fee is paid at time of import and is assessed on the customs entry along with any applicable duties/fees.

How to calculate Harbor Maintenance Fees

There is a simple formula to calculate the Harbor Maintenance Fee: HMF = value of shipment X 0.125. For example, on a $10,000 shipment, the HMF would be $12.50 ($10,000 X 0.125).

Unlike the Merchandise Processing Fee (MPF), HMF does not have a minimum or maximum charge. It is assessed on most imports, including goods that are duty free or quality for special trade programs, such as NAFTA. Examples of good that are exempt include Cargo Arriving In-Bond for direct exportation out of the USA, Ships Stores and Humanitarian Donations.

Quick Tip #43
Avoid overspending on transportation when it is not necessary

Determine what service level you need to meet your transit time and delivery targets. Match your needs to the appropriate mode of transport and you can cut costs.

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