Customs authorities charge a Merchandise Processing Fee (MPF) for processing merchandise entries into the country. The MPF is applied to imports in addition to any applicable duties, taxes, and other fees and is intended to cover the costs associated with the customs clearance of goods, including handling, examination, and administrative overhead.
The MPF is typically calculated as a percentage of the value of the imported goods, subject to a minimum and maximum fee threshold. The specific rates and thresholds can vary depending on the country and the entry type (e.g., formal or informal). For example, in the United States, the MPF is assessed at 0.3464% of the entered value of the merchandise, with current minimum and maximum limits.
The MPF helps fund the operations of customs authorities, ensuring they have the resources necessary to facilitate trade and enforce trade laws. This fee supports the infrastructure needed for efficient cargo processing and inspections at ports of entry, which helps maintain the security and integrity of the country’s borders. The MPF is a critical component of the total cost of importing goods.
