The Merchandise Processing Fee, or MPF, is a US customs fee that CBP charges on most imports to cover the cost of processing your entry. For a formal entry, one valued over 2,500 dollars, it is an ad valorem fee of 0.3464 percent of the goods' value, with a floor and a ceiling that adjust for inflation each year. For fiscal year 2026, running from October 1, 2025, the minimum is 33.58 dollars and the maximum is 651.50 dollars per entry. It is separate from duty, it applies whether or not any duty is owed, and it is charged per entry rather than per item. If you import into the United States, the MPF is on almost every bill, so it belongs in your landed-cost math from the start.
Here is exactly what the fee is, how it is calculated, how it differs from duty and the Harbor Maintenance Fee, and where importers get it wrong.
What the MPF actually is
The MPF is a user fee, not a tariff. It exists to recoup the cost CBP incurs handling the paperwork and risk of your shipment, and Congress requires it to be adjusted for inflation each fiscal year under the FAST Act, which is why the caps creep up annually. It applies to formal entries regardless of the country of origin and regardless of whether the goods carry any duty. That last point trips people up: a product with a Free base duty rate, such as most electronics or coffee, still owes the MPF. The fee rides on the value of the merchandise, not on the duty, so a zero-duty entry is not a zero-fee entry.
How the MPF is calculated
For a formal entry, the MPF is 0.3464 percent of the entered value of the goods, which is normally the transaction value, excluding duty, freight and insurance. That percentage then runs into a floor and a ceiling. For fiscal year 2026 the fee cannot be less than 33.58 dollars and cannot exceed 651.50 dollars per entry, with a small surcharge, 4.03 dollars, added when an entry is filed manually rather than electronically. The math is simple: multiply the goods' value by 0.003464, then clamp the result between the minimum and the maximum. A 5,000 dollar entry calculates to about 17 dollars, which is below the floor, so you pay the 33.58 dollar minimum. A 500,000 dollar entry calculates to about 1,732 dollars, which is above the ceiling, so you pay the 651.50 dollar maximum. Between roughly 9,700 dollars and 188,000 dollars of value, you pay the straight 0.3464 percent.
Formal versus informal entries
The 0.3464 percent structure applies to formal entries, generally those over 2,500 dollars or for regulated goods that require a formal entry regardless of value. Informal entries, typically lower-value shipments, carry a flat MPF instead of the percentage, a small fixed amount per entry rather than a value-based one. Because the fee is charged per entry, how a shipment is entered matters. Consolidating many small orders into one formal entry spreads a single capped MPF across more goods, while splitting one shipment into several entries multiplies the minimum fee. High-value importers routinely hit the 651.50 dollar ceiling, which effectively makes the MPF a shrinking percentage as entry value rises.
MPF versus duty versus the Harbor Maintenance Fee
These three charges are easy to blur, so keep them separate. Duty is the tariff set by your HTS code and can be anything from zero to over 30 percent of value. The MPF is the flat-rate processing fee described here, capped per entry. The Harbor Maintenance Fee, or HMF, is a separate 0.125 percent charge that applies only to goods arriving by ocean, has no minimum or maximum, and funds port maintenance. Air and truck shipments pay the MPF but not the HMF. So an ocean entry can carry all three, duty plus MPF plus HMF, while an air entry carries duty plus MPF only. A complete landed cost adds every layer that applies, not just the headline duty.
When the MPF is waived
The main way to legally avoid the MPF is a claim under a free trade agreement. Goods that qualify under USMCA and certain other preference programs are exempt from the MPF, which is a real saving on top of the duty preference itself. That is one more reason to confirm origin qualification carefully rather than assume it: a valid USMCA claim can remove both the duty and the processing fee, while an invalid one leaves you owing both plus interest. Products entered under other specific programs may also be exempt, so it is worth checking whether your goods and origin qualify before treating the MPF as unavoidable.
Getting the MPF into your costing and your books
Because the MPF is small next to duty on a high-tariff item but can be the larger line on a low-duty, high-value shipment, treat it as a standing part of landed cost rather than a rounding error. Build it into your quotes: value times 0.3464 percent, clamped to the current floor and ceiling, plus HMF on ocean freight, plus the duty from the code. When the broker's entry summary comes back, the MPF, HMF and duty are itemized on it, and those charges need to flow into your accounting so the true cost of goods is recorded. Teams that turn the broker and bank statements into a clean QuickBooks import keep the duty and fees reconciled without hand-keying every entry. To see the full stack for a specific shipment, classify the product on the live classifier and price it with the import duty calculator.
Frequently asked questions
What is the merchandise processing fee?
The Merchandise Processing Fee is a US customs user fee that CBP charges to process an import entry. For a formal entry it is 0.3464 percent of the value of the goods, with a per-entry minimum and maximum that adjust for inflation each year. It is separate from duty and applies even when the goods are duty-free, because the fee is based on the value of the merchandise, not on the tariff owed.
How much is the MPF in 2026?
For fiscal year 2026, which began October 1, 2025, the formal-entry MPF is 0.3464 percent of the goods' value, with a minimum of 33.58 dollars and a maximum of 651.50 dollars per entry. A 4.03 dollar surcharge applies if the entry is filed manually. The percentage rate did not change from the prior year; only the minimum and maximum caps were adjusted upward for inflation.
Is the MPF the same as import duty?
No. Import duty is the tariff set by the product's HTS code and can range from zero to over 30 percent of value. The MPF is a flat-rate processing fee, 0.3464 percent capped per entry, that CBP charges to handle the entry itself. Duty depends on what the product is and where it comes from; the MPF depends only on the value and applies even when the duty rate is Free.
How can I avoid the merchandise processing fee?
The main legal exemption is a qualifying claim under a free trade agreement such as USMCA, which removes the MPF along with the duty preference. Beyond that, because the fee is charged per entry with a fixed floor and ceiling, consolidating small shipments into a single formal entry spreads one capped fee across more goods instead of paying the minimum many times. Both approaches require correct classification and origin documentation.
The MPF is a small fee with an outsized habit of being forgotten in quotes. Fold it into landed cost from the start, confirm whether an FTA claim exempts it, and if you want the full picture for a shipment, classify the goods on the live classifier, then run the value through the import duty calculator alongside our guide to how to calculate import duty.