What Is the Merchandise Processing Fee (MPF)? A Practical U.S. Importer Guide

Merchandise Processing Fee (MPF) A U.S. customs user fee assessed on many formal import entries, subject to applicable rules and exceptions. The MPF is one of the routine charges importers see on customs entry summaries; it funds U.S. Customs and Border Protection trade processing activities and is required unless a specific statutory exemption applies.

The MPF applies to most formal entries of merchandise into the United States and is assessed at rates set by statute and regulation. It is separate from duties and antidumping/countervailing duties, and it is collected when entry documentation is presented to Customs for release or liquidation. For warehouse and 3PL operators, understanding when MPF applies, how it’s billed, and who ultimately pays the charge is critical to accurate landed‑cost calculations and client billing.

What The Fee Covers

MPF revenue supports Customs’ processing of import paperwork, risk assessment systems, and inspections that facilitate legal trade while protecting borders. It is not a tax on the goods themselves but a user fee for the administrative functions Customs performs when processing entries.

How The Fee Is Charged

MPF is charged on formal entries. Informal entries (generally low‑value shipments under a statutory threshold) typically avoid MPF. The fee is calculated either as a percentage of the entered value (subject to minimum and maximum amounts) or under a simplified fee schedule for certain entry types. Importers will see the charge on the entry summary and the entry transaction in Automated Commercial Environment (ACE).

• Application: Charged on formal import entries presented to CBP for consumption, warehouse withdrawal, or similar release actions.
• Rate Structure: Statutory percentage of entered value with set minimum and maximum caps (see CBP for current amounts).
• Timing: Assessed at entry or liquidation; payment is collected at entry unless deferred under approved arrangements.

Who Pays The MPF

Technically, the importer of record is responsible for MPF. In practice the economic burden may fall on a consignee, buyer, or an arranged logistics partner. Warehouses, customs brokers, and 3PLs often collect MPF from the client as part of their entry‑processing fees. Accurate documentation identifying the importer of record matters because liability runs to that party.

Common Exceptions And Special Cases

Not every shipment incurs MPF. Common exceptions include informal entries below the de minimis value, certain temporary imports, and some government or diplomatic imports. Additionally, specific programs and bonded transactions may alter how or when MPF is applied. Importers should review the statutory exemptions and consult CBP guidance for edge cases like returned goods or repair shipments.

Practical Example

Example: A merchant imports a pallet of finished goods with an entered value of $12,000. The MPF is calculated as the statutory percentage of entered value, subject to the current minimum and maximum caps. The customs broker records MPF on the entry summary and charges the importer of record. If the importer later claims an exemption (for example, if the goods qualify as returning U.S. goods), a refund or adjustment may be possible after review.

Tips For Importers And Warehouse Operators

• Label: Assign clear importer-of-record responsibility in commercial terms and contracts so MPF liability is understood before goods arrive.
• Label: Use customs brokers who can accurately code entry types — an incorrect entry type can trigger unnecessary MPF charges.
• Label: Monitor ACE entry records and reconciliations; CBP posts MPF charges and adjustments there for visibility.
• Label: Track de minimis and exemption rules — for many low-value e-commerce shipments, MPF won’t apply.

In short, the Merchandise Processing Fee (MPF) is a routine U.S. customs user fee assessed on most formal import entries. Knowing when it applies, who is liable, and how it is calculated helps importers, warehouses, and 3PLs budget correctly and avoid surprises in landed cost and client billing.