MPF and HMF in US Landed-Cost Estimates

The Merchandise Processing Fee (MPF) is a US Customs and Border Protection (CBP) fee charged on most formal entries into the United States. It is assessed as a percentage of the customs value of the shipment — the ad valorem rate has been 0.3464 percent for formal entries, though the percentage is subject to periodic regulatory adjustment, so the current CBP rate should always be confirmed before filing.

For formal entries, the MPF is subject to a minimum and a maximum per entry. Historically the minimum has been around $27 and the maximum around $528, but these thresholds are also adjusted periodically. For a shipment with a customs value of $5,000, the ad valorem calculation would fall below the minimum, so the minimum applies. For a shipment worth $200,000, the calculation would exceed the maximum, so the maximum is capped.

Informal entries — generally lower-value shipments processed through a simplified clearance procedure — have historically been assessed a flat fee rather than the ad valorem rate. Since 2025, the duty-free de minimis threshold has been modified and the MPF treatment for low-value shipments has changed. The entry type and current rules at the time of import govern which MPF calculation applies, making it important to verify with the broker filing the entry rather than applying a historic rate assumption.

The Harbor Maintenance Fee (HMF) is a separate CBP fee assessed on commercial cargo shipped through US ports. It applies to imports arriving by vessel through a US port, as well as to certain domestic movements. The rate has historically been 0.125 percent of the value of cargo, assessed at the port of entry.

HMF applies to ocean shipments but not to air freight, overland border crossings, or certain pipeline and other non-vessel modes. For companies comparing ocean versus air routing, this distinction matters: an air shipment avoids HMF while an ocean shipment of the same goods does not. The fee accumulates on every ocean shipment, so for high-volume importers it becomes a material line item in the annual landed-cost picture.

Like MPF, HMF is based on the value of the cargo rather than the weight or classification. This means the fee scales proportionately with the commercial value, and for high-value cargo — electronics, medical devices, machinery — it can represent hundreds or thousands of dollars per entry. Separating it from the duty line in a landed-cost model makes it easier to track and negotiate with logistics partners when rate discussions arise.

A complete US import landed-cost estimate typically has four broad cost layers: product cost (what you pay the supplier), shipping costs (ocean or air freight plus insurance), import costs (duty, MPF, HMF, and brokerage), and destination costs (drayage, warehouse receiving, final delivery). MPF and HMF sit inside the import-cost layer, alongside customs duty, not inside the freight layer.

One common modeling error is bundling MPF and HMF into the freight line, which makes the freight cost look artificially high and hides the true duty-and-fees burden. When freight costs fluctuate with the market, a bundled model also makes it impossible to quickly reforecast the import-cost component without rebuilding the entire model. Keeping the layers separate preserves auditability.

For smaller shipments where MPF hits the minimum, the effective rate as a percentage of value can be quite high — several percentage points for a shipment worth a few hundred dollars. For large-volume ocean shipments where MPF caps at its maximum, the effective rate drops to near zero as a percentage of value. Understanding this cap behavior is useful when evaluating consolidation strategies: splitting one large shipment into two entries doubles the MPF minimum exposure.

Use calculator output as a quote planning benchmark, not a filing instruction. The MPF and HMF fields in a landed-cost tool give you a starting point for the estimate, but the actual amounts on the entry summary are determined by the entry type, the value reported, and any applicable adjustments the broker makes during filing. Before a shipment moves, confirm the fee treatment with the broker or the party filing the customs entry.

Separate freight, insurance, duty, MPF, HMF, and local charges in customer-facing quote notes so changes are easier to explain. When any one layer changes — a new duty rate, an MPF minimum adjustment, or a freight market spike — a line-item quote structure allows you to explain the change precisely without re-issuing the entire quote. This transparency also tends to build more trust with customers than a single bundled delivered price.

For recurring import programs with consistent product mix and shipment sizes, track the actual MPF and HMF paid over time against the model. Small deviations signal input errors or entry classification issues that can accumulate. Large deviations — a sharp spike in MPF per entry — sometimes signal consolidation or entry-type changes that affect overall program economics and should be reviewed with the logistics provider.

Goods entered under certain US free trade agreements (FTAs) or preference programs may qualify for an MPF exemption. Shipments from countries with a qualifying FTA, such as Canada and Mexico under USMCA, certain CAFTA-DR countries, and others, may be exempt from MPF when the goods meet the relevant rules of origin. Incorrectly claiming a preference can expose the importer to retroactive duty and penalty assessments, so origin documentation needs to support any FTA claim made at entry.

Goods moving through a US Foreign Trade Zone (FTZ) or entering under a bonded warehouse arrangement have different MPF timing and sometimes different fee structures. If your logistics program involves FTZ storage or bonded entry, the broker handling those entries should explain how MPF and HMF interact with the zone or bond status — the rules differ from standard direct consumption entries.

For exporters pricing goods for the US market, remember that MPF and HMF are importer obligations, not seller obligations, under standard international trade terms. Under FOB, CIF, or EXW, the buyer bears these costs at destination. Under DDP (Delivered Duty Paid), the seller absorbs them as part of the delivered price. Knowing which incoterm governs the sale determines who needs to model these fees and ensures that quotes are structured consistently with the contractual obligations.