US Customs and Border Protection to Increase Minimum and Maximum Merchandise Processing Fees on Imports

US Customs and Border Protection (CBP) recently announced that effective January 1, 2018 the minimum and maximum Merchandise Processing Fee (MPF) on imported goods will increase.

This increase is a result of the Fixing America’s Surface Transportation Act (FAST Act) that was passed by Congress and signed into law in 2015. The FAST Act, which was recently implemented by CBP, requires certain customs user fees to be adjusted for inflation when the consumer price index increases by more than one percent.

CBP has announced that effective January 1, 2018, the minimum and maximum MPF will increase as follows:
 
Current MPF Amounts    New MPF Amounts Effective January 1, 2018
Minimum MPF = $25.00    $25.67
Maximum MPF = $485.00    $497.99 (which applies to entries greater than $143,760)(see below)

While the minimum and maximum MPF amounts will increase, the manner in which the MPF is calculated on formal entries will remain unchanged. The MPF on formal entries will continue to be equal to 0.3464 percent of the entered value of the goods (not including freight, insurance, or duties). Based on the 0.3464 percent MPF rate, the maximum MPF amount of $497.99 will only apply to entries with an entered value greater than $143,760.
 
Imports qualifying for certain free trade agreements, such as NAFTA, and other trade preference programs will continue to be exempt from MPF. CBP recently published a useful table showing which preference programs are eligible for MPF exemptions.
 
As indicated in CBP’s notice, a number of other CBP user fees will also increase, including the MPF on informal entries (increased to $2.05).