Question 1

What is the Merchandise Processing Fee (MPF)?

Accepted Answer

MPF is a CBP fee charged on formal customs entries (shipments where the value exceeds $2,500 or shipments that require formal entry for regulatory reasons). MPF rate: 0.3464% of the CIF (Customs Value) with a minimum of $32.71 and a maximum of $634.62 per entry. It is assessed per entry — not per line item, not per shipment if multiple shipments are consolidated into one entry. MPF was established under the Omnibus Trade and Competitiveness Act of 1988 and is updated periodically by CBP. It was last adjusted in 2023.

Question 2

What is the Harbor Maintenance Fee (HMF)?

Accepted Answer

HMF is a CBP fee of 0.125% of the dutiable value (CIF value) charged on sea freight imports only. Air freight, truck, and rail imports do not pay HMF. HMF has no minimum and no maximum cap — unlike MPF. HMF funds the Harbor Maintenance Trust Fund, which finances US port dredging, maintenance, and improvements. A $500,000 CIF sea shipment generates $625 in HMF. The fee was established by the Water Resources Development Act of 1986.

Question 3

Is MPF charged on all imports?

Accepted Answer

No. MPF is only charged on formal entries — shipments valued over $2,500 (for most goods) or any shipment requiring formal entry. Informal entries (valued under $2,500) use a flat fee structure instead of MPF. Additionally, goods from certain free trade agreement (FTA) countries may be exempt from MPF. NAFTA/CUSMA origin goods: exempt from MPF if they qualify for preferential tariff treatment. Goods from other FTA partners (Australia, Chile, Singapore, South Korea, etc.) also may be MPF-exempt depending on the agreement terms. China-origin goods are NOT MPF-exempt.

Question 4

How does MPF affect small versus large shipments?

Accepted Answer

MPF has a dramatic per-unit impact on small shipments. On a 100-unit shipment: $32.71 minimum MPF = $0.33/unit. On a 500-unit shipment at $32.71: $0.065/unit. On a 10,000-unit shipment: MPF caps at $634.62 = $0.063/unit. The minimum MPF ($32.71) is fixed regardless of value — making it proportionately more expensive for very small or low-value shipments. A $100 shipment pays $32.71 MPF = 32.71% of value in MPF alone. This is why consolidating multiple small orders into one customs entry saves money: you pay one MPF instead of multiple.

Question 5

Can I reduce MPF by splitting or combining entries?

Accepted Answer

You can reduce total MPF cost by consolidating multiple shipments into fewer customs entries. Each formal entry pays one MPF (capped at $634.62). Combining three $50,000 CIF shipments into one $150,000 CIF entry: instead of 3 × $173.20 MPF = $519.60, you pay one × $519.60 — a trivial example. But combining twenty $10,000 CIF shipments into one: instead of 20 × $34.64 = $692.80, you pay one $634.62 (capped) — a meaningful saving. Consult your freight forwarder about consolidation options. Note: you cannot artificially split one shipment into multiple entries to stay below $2,500 — CBP treats this as fraud.

Question 6

What happens to MPF and HMF if my shipment is exempt from standard duties?

Accepted Answer

MPF and HMF are assessed regardless of duty rate. Even if your goods have a 0% duty rate (e.g., electronics) or qualify for duty-free treatment (de minimis, FTA preference), MPF and HMF are still charged on formal entries. The only MPF exemptions are: (1) certain FTA countries' goods, (2) goods entered under informal entry (value <$2,500), and (3) certain specific commodity exemptions. HMF is exempt for sea shipments from certain countries (Canada, Caribbean Basin Initiative countries). China-origin goods are not exempt from either fee.

Question 7

How are MPF and HMF calculated on my customs entry?

Accepted Answer

Your customs broker calculates and pays MPF and HMF as part of your entry. On the CBP Form 7501 (the formal entry summary): Line 37 shows total MPF; Line 35 shows HMF. These are computed on the "Entered Value" which is the CIF customs value. MPF: 0.3464% of entered value, minimum $32.71, maximum $634.62. HMF: 0.125% of entered value, no min/max, sea entries only. You can verify these calculations on the CF-7501 that your broker provides after entry is liquidated.

Question 8

How much do MPF and HMF add to my per-unit costs?

Accepted Answer

MPF and HMF impact per-unit cost depends entirely on shipment size. Example at $65/unit CIF: At 100 units ($6,500 CIF) — MPF $32.71 (minimum) = $0.33/unit + HMF $8.13 = $0.08/unit → total $0.41/unit. At 500 units ($32,500 CIF) — MPF $112.58 + HMF $40.63 → $0.31/unit. At 2,000 units ($130,000 CIF) — MPF $450.32 + HMF $162.50 → $0.31/unit. At 10,000 units ($650,000 CIF) — MPF caps at $634.62 + HMF $812.50 → $0.14/unit. Per-unit MPF/HMF falls as shipment scales — another argument for larger order quantities.

Fee	Rate	Minimum	Maximum	Applies To
MPF	0.3464% of CIF	$32.71	$634.62	All formal entries
HMF	0.125% of CIF	None	None	Sea freight only

Units	CIF Value	MPF	HMF (sea)	Total Fees	Per Unit
50	$3,250	$32.71 (min)	$4.06	$36.77	$0.74
100	$6,500	$32.71 (min)	$8.13	$40.84	$0.41
500	$32,500	$112.58	$40.63	$153.21	$0.31
1,000	$65,000	$225.16	$81.25	$306.41	$0.31
2,000	$130,000	$450.32	$162.50	$612.82	$0.31
5,000	$325,000	$634.62 (max)	$406.25	$1,040.87	$0.21
10,000	$650,000	$634.62 (max)	$812.50	$1,447.12	$0.14

Approach	MPF per Entry	Total MPF/Month
5 separate entries	$69.28 each	$346.40
2 consolidated entries	$138.56 + $69.28	$207.84
1 consolidated entry	$277.12	$277.12

Merchandise Processing Fee Calculator

MPF and HMF: The Two CBP Fees Most Importers Underestimate

Fee Summary

MPF Impact by Shipment Size (at $65/unit CIF)

How MPF Is Calculated Step by Step

The Consolidation Math: How to Save on MPF

FTA MPF Exemptions

Tracking MPF on Your Entry Summary (CF-7501)

Tips for China Importers