Merchandise Processing Fee
Effective October 1, 2011, the Merchandise Processing Fee (MPF) for formal entries increased to an ad valorem fee of 0.3464 percent. The MPF is a user fee collected by the U.S. Customs and Border Protection (CBP) to help process merchandise entering into the U.S. and to monitor customs and trade compliance. The MPF is assessed and paid at the time of entry summary, and the fee is based on the value of the merchandise being imported (not including duty, freight and insurance charges).
Please note the following:
- Formal customs entries are generally required for shipments valued at USD$2,500 and above.*
- The minimum MPF is USD$25 and the maximum MPF is USD$485.
- Goods that originate in a NAFTA territory and that qualify to be marked as Canadian goods according to the Marking Rules are exempt from the MPF.
For more information, please visit the U.S. Customs and Border Protection (CBP) website.
The MPF increase legislation went into effect on October 1, 2011; however, the CBP's automated system was not updated until November 4, 2011. As a result, on June 11, 2012, the CBP began billing for the retroactive increase in the MPF for the period of October 1, 2011 through November 4, 2011. These additional charges are only being billed for amounts of USD$20 and above; therefore, formal customs entries with a value between approximately USD$13,000 and USD$140,000 are subject to the MPF increase. For more information, please refer to the CBP's Cargo Systems Messaging Service memorandum CSMS #12-000229.
*Effective January 8, 2013, the low-value threshold increased from USD$2,000 to USD$2,500.