Customs authorities charge a Merchandise Processing Fee (MPF) for processing merchandise entries into the country. This customs MPF is applied to imports in addition to any applicable duties, taxes, and other fees. It is intended to cover the costs associated with the customs clearance of goods, including handling, examination, and administrative overhead for merchandise processing.
The merchandise processing fee 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 instance, in the United States, the customs MPF is assessed at 0.3464% of the entered value of the merchandise, with current minimum and maximum limits.
The merchandise processing fee helps fund the operations of customs authorities, ensuring they have the resources necessary to facilitate trade and enforce trade laws. This customs MPF 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.
