Merchandise Processing Fee (MPF) Explained

Merchandise Processing Fee (MPF) Explained

So you have just cleared your first shipment into the U.S. and the prospects for increasing exports to the U.S. are high; your business plan is coming together.

Upon receipt of your first invoice from your U.S. Customs Broker you notice an additional charge that does not equal the original expenses you had expected. When you inquire, the U.S. Custom Broker explains that every shipment into the U.S. is subject to a Merchandise Processing Fee (MPF). Thankfully your first shipment was low value and the MPF was only $25.67.

So What Can You Expect For Future Shipments?

U.S. Customs and Border Protection (CBP) has been collecting the MPF for years. Recently the fees increased. According to the Federal Register, the calculation rate used to determine the amount owing will remain unchanged, however the minimum will increase to $25.67 to a maximum of $497.99.

How Do I Calculate MPF?

The easiest way to calculate the amount of MPF you will be charged on your imports into U.S. is to follow this formula:

  • For every $7200 of merchandise value you will pay $25.67 MPF
  • You will never pay less than $25.67 for formal entries (informal entries valued under $2500.00 are subject to a $2.05 MPF)
  • You never pay more than $497.99 (in order to reach this maximum a shipment value of $140,000 is required)
  • Lastly, if your goods qualify for any special trade programs, the MPF may very well be exempt

For more information contact us to check if MPF will be applicable on your imports.

Speak To A U.S. Import Specialist
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About Author
Aimee Miller

Aimee Miller is the Trade Compliance Supervisor with Pacific Customs Brokers Inc. US operation, located in Blaine, Washington. She is a licensed US Customs Broker and a Certified Customs Specialist, with 19 years of operational and Trade Compliance experience in the trade and transportation industry.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.
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