U.S. Customs and Border Protection Authorities Apply Retroactive Merchandise Processing Fee

U.S. Customs and Border Protection Authorities Apply Retroactive Merchandise Processing Fee

The U.S. Customs and Border Protection (CBP) authorities are now raising invoices in respect of the retroactive increase in the Merchandise Processing Fee (MPF).

MPF is intended to recover the costs of Customs administration of imports into the U.S. and is assessed on the entered value of imported merchandise, unless an exemption is available. Many Free Trade Agreements provide for such exemptions.

The relevant legislation was originally enacted in October 2011, but CBP automated systems were not updated to reflect the higher rate until November 2011. The CBP authorities are now billing for the additional MPF (which was raised from 0.21% to 0.3464%) for the period from 1st October to 4th November 2011.

The minimum and maximum formal entry charges remain unchanged at USD 25 and USD 485 respectively. Additional charges will be billed only for amounts of USD 20 or more; import shipments entered by formal entry with a value between approximately USD 13,000 and USD 140,000 are therefore subject to increased MPF.

The CBP authorities have not provided an estimate of the number of shipments and entries subject to the increased fee, but advise that entries will be processed in batches of 20,000 weekly until the billing is completed.

Additional information on the retroactive billing rate is available on-line at CSMS Message #12-000229 and at:
http://apps.cbp.gov/csms/viewmssg.asp?Recid=18806&page=&srch_argv=12-0000229&srchtype=&btype=&sortby=&sby