Import

MPF Minimum and Maximum Increase on October 1, 2020

MPF Increase

Effective October 1, 2020, the Merchandise Processing Fee (MPF) will increase from a minimum of $26.79 and a maximum of $519.76 to a minimum of $27.23 and maximum of $528.33.

MPF minimum = $27.23
MPF maximum = $528.33

The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change. The MPF minimum and maximum for formal entries (class code 499) will change. The last change was October 1, 2019. The fee for informal entry or release (class code 311) will change to $2.18. The surcharge for manual entry or release will change to $3.27. The dutiable mail fee (class code 496) will change to $5.99.


What is MPF?

The Merchandise Processing Fee (MPF) for formal U.S. Customs entries is an ad valorem fee of 0.3464% of the commercial value of goods.  The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges.  Formal entries are required for imports of commercial goods valued at $2,500 or more.

Informal entries generally do not require a CBP bond and are usually for personal use imports or commercial imports valued less than $2,500 (only if the Port Director requests based on importation).


Background

On December 4, 2015, the Fixing America’s Surface Transportation Act (FAST Act, Pub. L. 114-94) was signed into law. Section 32201 of the FAST Act amended section 13031 of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 (19 U.S.C. 58c) by requiring certain customs COBRA user fees and corresponding limitations to be adjusted by the Secretary of the Treasury (Secretary) to reflect certain increases in inflation. Pursuant to the General Notice (85 FR 45646) published July 29, 2020, various changes to user fees within the COBRA of 1985 will take effect on October 1, 2020.

Consulting

Our expert team of Licensed Customs Brokers and Global Trade Experts are happy to help.  Please email consulting@scarbrough-intl.com for a FREE 30-minute consultation for your U.S. Customs and Supply Chain optimization needs or fill out the form below.


About Scarbrough

The Scarbrough Group of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings.  Scarbrough is widely known for its trade experts, training, personalized customer service, and customized solutions.  Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.”  Moreover, our team of experts is available at your disposal.  We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade.  Contact us now.

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