Compliance 101 - Merchandise Processing Fee 2024
The Merchandise Processing Fee (MPF) is an essential fee implemented by U.S. Customs and Border Protection (CBP) on most imports into the United States. This fee helps cover the cost of processing the merchandise through customs and is based on the value of the merchandise. This fee is crucial for importers to consider when calculating landed costs and forecasting shipments. This post will help provide a overview of MPF in 2024.
Recent Changes to Merchandise Processing Fees
Most recent changes came into effect on October 1, 2023:
Increased Minimum and Maximum Fees
Minimum: $27.75 to $31.67
Maximum: $538.40 to $614.35
Calculating Merchandise Processing Fee
MPF is applied as a percentage of the value of the merchandise. The current percentage is currently set at 0.3464% of the entered value of the merchandise, but capped at $614.35 and not less than $31.67 as of May 2024.
Reducing Merchandise Processing Fee
While MPF is a mandatory fee, there are strategies which can minimize its impact:
Duty-Free Programs: Qualifying programs like USMCA and certain Free Trade Agreements with countries that eliminate or reduce duty rates on qualifying goods which can indirectly reduce MPFs as well.
Accurate Valuation: Ensure the declared value of merchandise is accurate as overvaluation will lead to higher MPFs.
Consolidated Shipments: Consider consolidating shipments into a single entry if importing multiple shipments from the same origin. This can help avoid multiple MPF fees and take advantage of the MPF maximum cap.
Understanding how MPF is calculated and ensuring accurate valuation of your imported merchandise can help in budgeting for import-related costs. If you need assistance with calculating MPF or duties, check out Importal’s free duty calculator by signing up here!
For more on the Merchandise Processing Fee and related CBP rulings, head to CBP’s website.
