What does the merchandise processing fee (MPF) represent?

The merchandise processing fee (MPF) is a fee collected by U.S. Customs and Border Protection (CBP) that applies specifically to goods being imported into the United States. This fee is designed to cover the administrative costs associated with the processing of imported merchandise. It applies to most commercial imports, ensuring that businesses contribute to the resources used for customs clearance and compliance.

The MPF is calculated based on the value of the merchandise being imported, up to a maximum threshold. This system allows for a proportional collection that reflects the volume and value of goods entering the U.S. market while also promoting fair and efficient processing.

Understanding the MPF's role in regulating imports is vital for compliance with customs regulations and for businesses engaged in international trade. This fee significantly differs from taxes or charges associated with exports, cargo insurance, or flat fees applied indiscriminately, as its intent is solely focused on imports.