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Customs Valuation & Landed Cost

Merchandise Processing Fee

Also known as: MPF

The merchandise processing fee is a charge assessed by United States customs on most formal and informal import entries to help fund the processing of merchandise, calculated for formal entries as a percentage of the shipment's value within a legislated minimum and maximum, and as a small flat amount for many informal entries. Though modest relative to duty on high-value shipments, the fee is a real component of landed cost, and its cap makes it proportionally smaller on large entries. Goods qualifying under certain free trade agreements may be exempt, which is one more reason to confirm preferential eligibility.

The JFS takeLicensed customs broker · Filer 82G

A percentage with a floor and a ceiling, which means on low-value formal entries the minimum applies and is often the largest single line on the bill. Importers looking at a modest duty rate and a small parcel are regularly surprised by what the fee alone comes to.

Where it matters for compliance

  • Ad valorem on formal entries, subject to statutory minimum and maximum amounts adjusted annually.
  • Not charged on all entry types, and not the same thing as the harbor maintenance fee.

Related terms

Landed CostLanded cost is the complete, all-in cost of getting a product from the supplier to the buyer's door, combining the price of the goods with international freight, insurance, customs duties, trade-remedy duties, brokerage, port and handling charges, inland transport, and applicable taxes and fees.Customs EntryA customs entry is the formal declaration an importer or its broker files with the customs authority to secure the release of imported goods and to account for the duties and taxes owed.Preferential TariffA preferential tariff is a reduced or zero duty rate that one country grants to goods originating in another under a free trade agreement or a unilateral preference program, in place of the standard rate applied to imports generally.

Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.