MPF is one of the most common U.S. import charges and an important part of customs-related landed cost. Importers usually encounter it during the entry process, especially on formal entries, which makes it a key term to understand before cargo arrives.
Merchandise Processing Fee definition
MPF, or Merchandise Processing Fee, is a U.S. Customs and Border Protection fee charged on most imports to help cover merchandise processing and customs-related administrative costs. In simple terms, MPF is a customs user fee that importers often pay when goods enter the United States, and it commonly appears alongside duties and other import charges.
What does MPF mean in importing?
In importing, MPF stands for Merchandise Processing Fee. It applies to most U.S. imports and is one of the basic customs-related charges that can affect total landed cost.
Because the acronym “MPF” can mean different things in other industries, this page focuses only on the customs and import meaning of MPF.
How Merchandise Processing Fee works
MPF is assessed as part of the import-entry process. For formal entries, it is usually calculated as an ad valorem fee based on the value of the imported merchandise, subject to a minimum and maximum amount. Informal entries use fixed fee amounts instead of the formal-entry ad valorem calculation.
- Merchandise is entered into the U.S.: the shipment is processed through customs entry.
- Entry type matters: formal and informal entries are treated differently for MPF calculation.
- Fee is assessed: the applicable percentage or fixed fee is applied.
- MPF becomes part of import cost: the charge is included in customs-related landed cost.
How is MPF calculated?
For formal entries, MPF is calculated at 0.3464% of the value of the merchandise being imported, excluding duty, freight, and insurance. Formal entries are also subject to a minimum fee and a maximum fee.
As of the current fee schedule, the formal-entry minimum is $33.58 and the formal-entry maximum is $651.50.
MPF for informal entries
Informal entries use fixed fee amounts rather than the formal-entry ad valorem calculation. Current informal-entry fee amounts include:
- $2.69 for automated informal entry or release not prepared by CBP personnel
- $8.06 for manual informal entry or release not prepared by CBP personnel
- $12.09 for informal entry or release prepared by CBP personnel
When does MPF apply?
MPF applies to most U.S. imports, although certain preferential trade programs and exemptions can change whether the fee is owed. That is why MPF should be reviewed together with the customs treatment of the shipment rather than assumed automatically in every case.
Who pays Merchandise Processing Fee?
In practice, MPF is generally borne by the importer as part of customs entry costs. For businesses importing regularly, it becomes a recurring cost factor that should be included in pricing, sourcing, and landed-cost planning.
For importers that want better control over customs costs and shipment planning, Dedola’s global logistics services can help connect freight execution with customs and fee visibility.
MPF vs HMF: what is the difference?
MPF and HMF are both U.S. import-related fees, but they apply for different reasons.
- MPF: a customs processing fee tied to the import-entry process for most imports.
- HMF: a separate fee associated with qualifying vessel-based port use on certain ocean shipments.
Importers often see both charges when reviewing total customs and ocean-import costs.
Why MPF matters for importers
MPF matters because it affects true import cost, especially across repeated shipments. Even when the fee seems small relative to the product value, it can add up across formal entries and materially affect margin calculations.
- Impacts landed cost
- Should be included in import budgeting
- Matters when comparing sourcing options
- Can affect total customs cost on frequent shipments
Businesses that want a more complete view of freight, customs, and duty-related costs often benefit from broader supply chain planning instead of estimating costs one shipment at a time.
Common MPF terms importers should know
- MPF: Merchandise Processing Fee.
- Formal Entry: the type of import entry usually subject to the ad valorem MPF calculation with a minimum and maximum.
- Informal Entry: an import entry type that uses fixed fee amounts instead of the formal-entry percentage structure.
- Ad Valorem: a charge based on the value of the goods.
- Landed Cost: the full delivered cost of imported goods, including customs-related fees like MPF.
Merchandise Processing Fee FAQ
What is MPF in simple terms?
MPF is a U.S. customs processing fee charged on most imports as part of the entry process.
What does MPF stand for?
MPF stands for Merchandise Processing Fee.
How is MPF calculated for formal entries?
For formal entries, MPF is calculated at 0.3464% of the value of the imported merchandise, subject to a minimum and maximum fee.
Is MPF the same as HMF?
No. MPF is a customs processing fee for most imports, while HMF is a separate fee tied to qualifying vessel-based port use on certain ocean shipments.
