When reviewing U.S. customs duty documents, you will always encounter MPF and HMF fees. These are unique customs clearance charges in the United States and are not universal foreign trade terms. So, what exactly are MPF and HMF fees? Why are they charged? What are the fee rates, and are there any caps? Today, we will explain these two fees in detail.
I. MPF (Merchandise Processing Fee)
Definition
MPF stands for Merchandise Processing Fee, commonly translated as “Cargo Handling Fee” in Chinese. It is a fee levied by U.S. Customs and Border Protection (CBP) on most imported goods to cover the costs of processing imports, including handling, inspection, and ensuring import safety.
Scope of Application
Applicable to most imported goods, including sea freight and air freight shipments.
Fee Standards
- Rate: Usually calculated at 0.3464% of the declared value of imported goods.
- Minimum Fee: No less than USD 33.58 per declaration.
- Maximum Fee: No more than USD 614.35 per declaration.
- Exceptions: Certain types of goods may be subject to fixed rates instead of a percentage-based fee.
II. HMF (Harbor Maintenance Fee)
Definition
HMF stands for Harbor Maintenance Fee, translated as “Port Maintenance Fee” in Chinese. It is a fee paid by importers to fund the maintenance of U.S. port and terminal facilities. The purpose of HMF is to share the costs of port maintenance and ensure the normal operation of port facilities.
Scope of Application
Applicable only to sea freight imports; not applicable to air freight or exports.
Fee Standards
- Rate: Calculated at 0.125% of the declared value of imported goods.
- No Single-Transaction Cap: Unlike MPF, HMF has no upper limit per declaration.
- Exemptions: Some goods (e.g., crude oil, certain defense materials) may be exempt from HMF.
III. Calculation of MPF and HMF Fees
Assume you import a batch of goods with a declared value of USD 50,000:
- MPF Calculation: 50,000 × 0.3464% = USD 173.20
- HMF Calculation: 50,000 × 0.125% = USD 62.50
The total of these two fees is USD 235.70, which needs to be paid in addition to the customs duties.
