US MPF and HMF customs fees explained

What is the Merchandise Processing Fee (MPF)?

The Merchandise Processing Fee is a statutory user fee assessed by US Customs and Border Protection (CBP) to offset the cost of processing a customs entry. It was created by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), codified at 19 USC 58c, and the operational rules live in 19 CFR 24.23. MPF is not a duty, it is not a tariff, and it does not fund the trade-remedy programs. It is a fee for the paperwork.

Two rules together give MPF its personality:

1. Formal-entry MPF is an ad valorem fee: a percentage of the entered customs value of the merchandise on the entry summary. The percentage does not change with commodity, origin, or transport mode. In FY2026 the rate is 0.3464%.
2. The percentage is capped on both ends: no formal-entry MPF is lower than the $33.58 floor, and none is higher than the $651.50 ceiling. That is why a $500,000 pallet of consumer electronics and a $5,000,000 container of the same electronics both pay the same $651.50.

CBP publishes the current floor, ceiling, and informal-entry flat amounts every summer in a Federal Register notice titled "COBRA Fees To Be Adjusted for Inflation." The adjustments take effect on October 1, 2025 at the start of each federal fiscal year. The percentage itself, 0.3464%, is set by statute at 19 USC 58c(a)(9)(A) and does not move with inflation. The floors and ceilings do.

Formal-entry MPF: the $33.58 / $651.50 band

A formal entry is required for most commercial shipments valued above $2,500 (see the informal-entry section below for the carve-outs). For a formal entry the MPF math is:

MPF = max(min(0.3464% × customs_value, $651.50), $33.58)

Some worked numbers, all using the FY2026 band effective October 1, 2025:

The crossover point (the entered value at which the ad valorem calculation exactly equals the ceiling) is a useful number to memorize. In FY2026 that value is $651.50 ÷ 0.3464% = $188,076.62. Above roughly $188,077 of entered value on a single formal entry, MPF is a flat $651.50 regardless of how large the shipment is. Below that, MPF scales linearly with value. Below about $9,694 of entered value, MPF is a flat $33.58 regardless of how small the shipment is (that floor kicks in at $33.58 ÷ 0.3464% = $9,693.99).

The $4.03 manual surcharge

If a formal entry is submitted manually rather than through the Automated Broker Interface (ABI), CBP adds a $4.03 manual-processing surcharge on top of the ad valorem MPF. In practice this only shows up on the small number of entries filed outside ACE. Confirm the mode on your entry summary, line "Manual fees" in ACE. If your broker uses ABI, you never see this line and you should never be charged it.

Informal-entry MPF: the flat fee tier

Informal entry is available for most commercial shipments valued at or below $2,500 (19 CFR 143.21). Certain product categories (regulated goods, quota merchandise, and articles requiring a formal declaration) are excluded from informal treatment regardless of value; a customs broker or CBP port can confirm.

For informal entries MPF is not a percentage. It is a flat amount keyed to how CBP processed the release:

• $2.69 when the informal entry is processed through ACE (automated).
• $8.06 when the informal entry is processed manually but the broker or importer prepared the documents.
• $12.09 when CBP itself has to prepare the informal entry paperwork on the importer's behalf.

De minimis Section 321 entries (informal releases at or below $800) are outside MPF entirely as of the current statute; CBP has historically not assessed MPF on Section 321 shipments. That posture is under active policy review as the de minimis threshold is being narrowed; check CBP's current guidance before relying on it for a business model.

What is the Harbor Maintenance Fee (HMF)?

The Harbor Maintenance Fee is a separate statutory user fee created by the Water Resources Development Act of 1986 and codified at 26 USC 4461. CBP collects it on behalf of the US Army Corps of Engineers, which uses the proceeds to fund the Harbor Maintenance Trust Fund (dredging, jetty repair, channel maintenance at commercial US ports). The operational rules live in 19 CFR 24.24.

HMF is 0.125% of the value of commercial cargo loaded or unloaded at a US port from a vessel. There is no floor, there is no ceiling, and the rate does not inflation-adjust each year the way MPF's floor and ceiling do. A $10,000 shipment pays $12.50 HMF; a $10,000,000 shipment pays $12,500 HMF.

When HMF applies (and when it does not)

HMF is a mode-specific fee. It applies to ocean cargo only, and only when the cargo passes through a covered US port. In practice that means:

• Ocean freight (FCL, LCL) into any US seaport: HMF applies.
• Air freight into any US airport: HMF does not apply. Air cargo pays MPF only.
• Truck border crossings (from Canada or Mexico): HMF does not apply.
• Rail crossings: HMF does not apply.
• Great Lakes: HMF applies to commercial cargo at Great Lakes ports the same way it applies at ocean seaports.
• Alaska, Hawaii, and Puerto Rico: special domestic-movement rules apply; see 19 CFR 24.24(c).

HMF applies whether the entry is formal or informal; the$2,500 threshold that changes MPF's math does not change HMF. Bulk cargo, containerized cargo, and passenger vessels each have their own subsections at 19 CFR 24.24, but for containerized commercial imports the rule is the simple one:0.125% of value at the port of unloading.

MPF vs HMF: side-by-side

Worked example: FCL container from Shanghai to Long Beach

Assume a single container of consumer electronics with an entered customs value of $120,000, ocean shipment, formal entry filed through ACE, no FTA claim, no Chapter 99 exclusion.

• MPF: 0.3464%× $120,000 = $415.68. That is between the$33.58 floor and the $651.50 ceiling, so MPF paid = $415.68.
• HMF: 0.125% × $120,000 = $150.00.
• Combined statutory user fees: $565.68. On top of duty, any Section 301 or IEEPA overlay from HTS Chapter 99 Subheading 9903, VAT (n/a for the US), and freight-related charges. See the US ITC HTS for the duty rate and Chapter 99 overlay lookup by subheading.

Now change one variable: same $120,000 shipment, but flown into LAX instead of shipped into Long Beach. MPF stays at $415.68 (air cargo pays MPF the same way as ocean cargo). HMF drops to $0 because HMF does not apply to air freight. Combined user fees on the air move: $415.68. That $150 difference is the entire HMF-vs-no-HMF delta; it is often overlooked in mode comparisons because MPF sits on both.

MPF waivers under free-trade agreements

MPF is waived when the merchandise on the entry summary qualifies as originating under specific US free-trade agreements and the claim is properly made on the entry. The waivers are FTA-by-FTA and are one of the more frequently missed refund opportunities on real entries. As of publication the FTAs that waive MPF for originating goods include:

• USMCA (formerly NAFTA)
• US-Chile FTA
• US-Israel FTA
• US-Australia FTA
• US-Bahrain FTA
• US-Oman FTA
• US-Peru TPA

KORUS (US-Korea), CAFTA-DR, US-Colombia TPA, US-Panama TPA, US- Morocco FTA, US-Jordan FTA, US-Singapore FTA, and the GSP program (when in force) do not waive MPF; qualifying originating goods under those programs pay full MPF alongside a duty-free rate. The list changes over time as Congress amends individual FTA implementing statutes, so verify against 19 CFR 24.23(c) before relying on any specific program.

When MPF and HMF are refundable

Both fees are refundable in a narrow set of circumstances. The two most common in practice:

1. Successful protest under 19 USC 1514: if the underlying customs value is reduced or the entry is otherwise adjusted downward within the 180-day protest window from liquidation, the corresponding MPF (and HMF, if applicable) is recomputed against the corrected value and the difference is refunded.
2. Reconciliation adjustment: for importers on the Reconciliation Prototype, MPF and HMF are adjusted when the reconciliation entry finalises actual value, and any overcollection is refunded.

An FTA-waived MPF that was mistakenly paid at entry is refundable through a Post-Summary Correction (PSC) if the entry has not yet liquidated, or through a protest after liquidation. This is a regular finding on entry audits: brokers file the entry under a USMCA-eligible tariff code but forget to check the "USMCA preference" box on the entry summary, and full MPF is collected on merchandise that should have been MPF-free. See our broker entry audit for automated detection of this pattern across historical entries.

Common broker miscalculations we see on real entries

Across the entry summaries fed into our audit engine, three MPF and HMF errors show up disproportionately often. None are complicated. All are refundable if caught inside the protest or PSC window.

1. MPF ceiling missed on split entries

The $651.50 ceiling is per formal entry, not per invoice or per container. Splitting one arrival into multiple entry summaries (for example, to separate FDA-regulated commodities from unregulated ones) can multiply the ceiling and cause the total MPF collected to exceed what a single consolidated entry would have owed. Where the split is not required by regulation, a single consolidated entry is often cheaper. Where it is required, note that the extra MPF is unavoidable and factor it into the landed-cost math up front.

2. FTA preference claim missed at entry

Merchandise that qualifies as USMCA (or US-Chile, US-Israel, US- Australia, US-Bahrain, US-Oman, US-Peru) originating is entitled to duty-free treatment AND MPF waiver. The MPF waiver requires the preference claim to be made on the entry summary. It is common to see the duty-free preference claimed correctly and the MPF still paid at full ad valorem, either because the broker software auto-populated the fee or because the entry filer forgot the second checkbox. Recoverable via PSC before liquidation and via protest for 180 days after.

3. HMF collected on non-ocean cargo

Air freight, truck crossings, rail moves, and mail shipments do not owe HMF. On paper this seems impossible to miscalculate because ACE knows the mode of transport, but we see it on entries filed by brokers who use a shared fee template across modes. Anytime the entry summary shows HMF on a mode other than vessel, protest and recover.

Run the numbers on your own shipment

Our landed-cost calculator applies the FY2026 MPF and HMF rules on the customs value you enter, including the $33.58/$651.50 band, the mode-based HMF exclusion, and the FTA MPF waiver for eligible originating goods. Enter your shipment value, origin, destination, and HTS code and it returns MPF and HMF alongside duty (including any Chapter 99 overlay, cross-referenced with our duty-rate lookup) so you can budget the full statutory user-fee load before the container arrives.

Frequently asked questions

What is the FY2026 MPF ad valorem rate?

0.3464% of the entered customs value, with a per-entry floor of $33.58 and a ceiling of $651.50 (effective October 1, 2025, per CBP's annual COBRA inflation adjustment under 19 CFR 24.23).

Does HMF apply to air or truck shipments?

No. Harbor Maintenance Fee is charged on commercial cargo unloaded at, or loaded onto a vessel at, a US port. Air freight, truck crossings, rail, and mail shipments are outside the statute (26 USC 4461) and pay no HMF.

When is MPF refundable?

When the underlying entry is refunded (for example, a successful protest under 19 USC 1514, a reconciliation adjustment, or an exclusion request granted after entry), the MPF paid on that entered value is refunded pro-rata. MPF is also not assessed on qualifying free-trade-agreement entries such as USMCA, US-Chile, US-Israel, US-Australia, US-Bahrain, US-Oman, and US-Peru originating goods claimed on the entry summary. Note that MPF exemption is FTA-by-FTA: KORUS and CAFTA-DR do NOT exempt MPF.

What is the difference between formal and informal entry for MPF?

Informal entry is available for most shipments valued at or below $2,500 (19 CFR 143.21). Informal entries pay a flat MPF ($2.69 automated, $8.06 manual, $12.09 manual and prepared by CBP) instead of the ad valorem rate. Formal entries above $2,500 pay 0.3464% with the $33.58 minimum and $651.50 maximum.

Is MPF assessed on Chapter 99 Section 301 duties or IEEPA tariffs?

MPF is assessed on the entered value of the merchandise, not on the duty. Chapter 99 duties (Section 301, Section 232, IEEPA reciprocal tariffs, and other trade-remedy overlays under HTS Chapter 99 Subheading 9903) increase the duty owed but do not change the MPF calculation because MPF's base is customs value, not duty.

Do I owe both MPF and HMF on the same ocean shipment?

Yes. They are two separate statutory user fees. MPF covers CBP's cost of processing the entry (19 CFR 24.23); HMF funds the Army Corps of Engineers' harbor maintenance work (19 CFR 24.24). An FCL container from Shanghai to Long Beach owes MPF at 0.3464% (subject to the $33.58/$651.50 band) plus HMF at 0.125%, both on the entered customs value.

Primary sources

• 19 CFR 24.23 Fees for processing merchandise (statutory basis and formula for MPF, including the annual COBRA inflation adjustment mechanism)
• 19 CFR 24.24 Harbor Maintenance Fee (rate, ports covered, mode rules, exemptions)
• 19 CFR 143.21 Merchandise eligible for informal entry (the $2,500 threshold and category carve-outs)
• CBP User Fee Table the authoritative current-year MPF floor, ceiling, informal-entry flats, and HMF rate. This page is the source for the FY2026 numbers used throughout this guide.
• Harmonized Tariff Schedule of the United States including Chapter 99 Subheading 9903 for trade-remedy overlays that affect the duty line but not the MPF or HMF lines.

This guide is written by the LandedFees team as a plain-English reference to the current US statutory user-fee regime. It is not legal or customs advice. For a binding classification, valuation, or fee ruling on a specific transaction, consult a licensed customs broker or file a request for a binding ruling with CBP.