If you’re handling U.S. imports, you’ve likely seen the term Merchandise Processing Fee on a customs invoice. It’s one of those charges that show up without much context but can impact your landed cost if you’re not paying attention.
Let’s break it down in clear terms.
Merchandise Processing Fee Meaning
The Merchandise Processing Fee is a fee collected by U.S. Customs and Border Protection (CBP) to recover the cost of processing incoming shipments. It applies to most goods imported into the U.S., based on their value and entry type.
MPF Meaning and What Is MPF
MPF stands for Merchandise Processing Fee. It applies to formal entries, shipments valued $2,500 or more, and is calculated based on the shipment value. CBP sets a rate, and there are certain limits too.
How MPF Charges Work
CBP sets the MPF rate as 0.3464% of the shipment’s value, but they also apply minimum and maximum limits. As of October 1, 2025, the minimum rises to $33.58, and the maximum to $651.50 on formal entries
This means if your calculated fee is below $33.58, you pay the minimum; if it’s over $651.50, you only pay the maximum. That’s how MPF charges are kept fair.
MPF and Freight Costs
While MPF isn’t technically a freight charge, it does impact your total landed cost. It’s important to factor in MPF along with duties, freight, and insurance when calculating cost per unit.
Keeping up with changes in U.S. trade fees like this one helps importers budget more accurately. A recent update by CBP outlines increases in both MPF and other related fees effective next year.
Recent Fee Update
Heads-up for importers: starting October 1, 2025, both minimum and maximum MPF amounts will increase to align with inflation and the FAST Act. It’s wise to monitor these changes to stay compliant and budget accurately.
Final Thoughts
Merchandise Processing Fee is one of those customs costs that’s easy to overlook but important to understand. Teamship helps importers manage everything in one place, from warehouse integration to visibility over fees like MPF. You can stay focused on running your operations, not chasing down paperwork.
Frequently Asked Questions
1. Are any imports exempt from the Merchandise Processing Fee?
Yes. Certain free trade agreements exempt goods from MPF, mostly items from countries like Canada, or under specific trade programs recognized by CBP.
2. Is the MPF refundable if the shipment is canceled?
No, once the entry is filed and accepted by CBP, the MPF is non-refundable, even if the shipment is returned or canceled later.
3. Does MPF apply to imports into other countries?
No. The MPF is unique to U.S. imports. Other countries may have different fees, but they don’t use MPF.