Trade compliance · United States

The Merchandise Processing Fee (MPF), explained

Almost every U.S. import owes a small customs charge on top of any duty — the Merchandise Processing Fee. It is easy to overlook because it is not a tariff, but it lands on duty-free goods too, and it has its own rules about how it is sized and when it is waived. Here is a plain-language map of what it is and how to work out what you will pay.

The MPF rate and its per-entry minimum and maximum are reset every fiscal year by CBP for inflation, so this page does not publish current figures. To compute the MPF (and the HMF) for an exact code and value, use the live tool linked below; it applies the figures in force today.

What the MPF is

The Merchandise Processing Fee is a user fee Customs and Border Protection charges to process an import entry — it pays for the cost of handling the entry, not for any policy aim. It is authorized by statute (19 U.S.C. § 58c) and set out in regulation (19 CFR § 24.23). Because it is a processing fee rather than a duty, it is charged on the value of the goods regardless of whether those goods are dutiable, so a duty-free import can still owe the MPF.

How the fee is structured

There are two forms of the fee depending on the kind of entry — an ad-valorem charge with caps for formal entries, and a flat amount for informal ones:

• Formal entry A percentage of the goods’ value, capped per entry 19 CFR § 24.23 · for entries above the informal-entry threshold For a formal entry — broadly, a commercial shipment valued over the informal-entry threshold — the MPF is an ad-valorem charge: a percentage of the merchandise (customs) value, subject to a minimum and a maximum amount per entry. The percentage and the dollar min/max are reset by CBP each fiscal year under an inflation formula, so the figure in force today is the only one that matters — this page does not quote it.
• Informal entry A flat fee per entry 19 CFR § 24.23 · for low-value / simplified entries For an informal entry — typically lower-value or simplified shipments — the MPF is a flat amount per entry instead of a percentage, and it can differ depending on whether the entry is prepared and processed automatically or manually. Like the formal-entry figures, the flat amount is adjusted periodically, so confirm the current one rather than relying on a remembered number.

Working out the MPF on an entry — the method

You size it from the entry type and the customs value, then check for an exemption, in order:

1. 01

   Determine the entry type

   Whether the shipment is a formal or an informal entry decides which form of the fee applies — the ad-valorem-with-caps version or the flat version. The value of the goods relative to the informal-entry threshold is the usual deciding factor.

2. 02

   For a formal entry, apply the percentage to the customs value

   The MPF is calculated on the merchandise (customs) value, not on the duty — then floored at the per-entry minimum and capped at the per-entry maximum. Because the rate and both caps change each fiscal year, the current published figures are what you compute against.

3. 03

   Check whether an exemption applies

   Goods that qualify as originating under certain free-trade agreements (for example USMCA) are exempt from the MPF, and some entry types and programs are exempt as well. Qualifying for an FTA is not automatic — the goods must actually meet the agreement’s origin rules and be claimed correctly.

4. 04

   Add it on top of duty and the other charges

   The MPF is separate from the import duty and from the Harbor Maintenance Fee. It is assessed per entry on the value of the goods, so even duty-free merchandise usually still owes it. Getting the full landed cost right means stacking the duty, any trade-remedy surcharges, the MPF and (for ocean freight) the HMF.

MPF vs HMF — they are not the same fee

The MPF is easy to confuse with the Harbor Maintenance Fee (HMF), but they are distinct user fees. The HMF applies only to cargo arriving by ocean and is a straight percentage of the value with no minimum and no maximum, and it is not waived by free-trade agreements. The MPF applies across modes of transport, has a per-entry floor and ceiling, and is waived for goods qualifying under certain FTAs. An ocean import can owe both at once, on top of the duty and any Section 301/232/AD-CVD charges — which is why the two are listed separately on the landed-cost breakdown.

Where to verify (authoritative sources)

These are the official sources. The annual figures change between fiscal years, so confirm what is in force against them before relying on anything, including this page.

• CBP — COBRA user fees (inflation adjustments) Customs and Border Protection’s page for the COBRA customs user fees, including the annual MPF minimum/maximum inflation adjustment — the authority on the current figures.
• eCFR — 19 CFR § 24.23 (Merchandise Processing Fee) The regulation that defines the MPF, the formal- and informal-entry forms, and the exemptions.
• Cornell LII — 19 U.S.C. § 58c (customs user fees) The statute authorizing the customs user fees, including the merchandise-processing fee and its caps.
• eCFR — 19 CFR § 24.24 (Harbor Maintenance Fee) The companion user fee on ocean shipments — ad valorem with no minimum or maximum and no FTA exemption — useful for telling the two apart.
• CBP — Basic importing & exporting CBP’s overview of the entry process, including the difference between formal and informal entries.

Related: How U.S. import duty is calculated — the full stack the MPF sits in · Section 301 vs 232 vs AD/CVD — the extra duties that can stack with it · How to read an HTS code — the classification the value keys off.

This is an independent, plain-language explainer produced by an autonomously operated software workshop under human oversight. It is not legal, customs or tax advice, is not the official version of any fee schedule or regulation, and may be out of date. The fees owed on a given import are the importer's legal responsibility — always verify against CBP, the eCFR and the U.S. Code before relying on it. No affiliation with, or endorsement by, any U.S. government agency is implied.