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).
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.
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