What Is Merchandise Processing Fee MPF?
- Verified & Reviewed · Last updated May 2026
The Merchandise Processing Fee MPF is a U.S. customs user fee collected by U.S. Customs and Border Protection on most imports entering the United States.
This guide explains what MPF means, how the merchandise processing fee is calculated, the difference between formal entries and informal entries, when MPF applies, and how it affects total import costs for U.S. importers.
MPF Calculation
Formal & Informal Entries
Customs User Fee
- Experienced China-based logistics specialists
Table of Contents
Merchandise Processing Fee MPF
The Merchandise Processing Fee MPF is a U.S. customs user fee collected by U.S. Customs and Border Protection on most imports entering the United States. It helps cover the administrative work behind the import process, such as reviewing documents, checking declared value, and releasing imported goods.
For importers, MPF is a standard part of landed cost and may appear on a customs broker invoice, freight forwarder invoice, DDP quote, or final clearance breakdown. It is different from customs duty, which depends on the HS code, product type, origin, and tariff rules.
Why CBP Charges This User Fee
CBP charges the processing fee MPF because imported goods require administrative review. Officers and electronic systems need to check shipment details, confirm the importer of record, review declared value, and make sure the goods follow U.S. import rules.
That is why MPF is also called a user fee. It is paid by businesses and individuals using the U.S. import clearance system.
This charge may apply to goods moved by:
Truck or rail
International mail
Door-to-door transportation services
The transportation method may change how clearance is handled, but the charge itself is tied to the import filing.
Who Pays the MPF Fee?
The importer of record normally pays the MPF fee. In many commercial imports, a customs broker pays it to CBP on behalf of the buyer and then includes it on the clearance invoice.
If goods are imported under FOB, EXW, CIF, or DAP terms, MPF is usually part of the destination-side cost.
If goods move under DDP terms, MPF may already be included in the total door-to-door price, together with duty, taxes, broker services, and final delivery.
The important point is simple: even when MPF is not shown as a separate line item, it may still be included in the total amount you pay.
How Much Is the Merchandise Processing Fee?
The Merchandise Processing Fee MPF is charged differently depending on how the shipment is entered into the United States. For most importers, the key difference is between formal entries and informal entries.
Formal Entries
For formal entries, MPF is calculated as an ad valorem fee based on the entry value of the imported merchandise.
The current MPF rate for formal entries is 0.3464% of the entry value. However, CBP applies both a minimum and a maximum amount, so the final fee cannot be too low or exceed the official cap.
For formal entries:
The MPF rate is 0.3464% of the entry value.
The minimum fee is USD 33.58 per entry.
The maximum fee is USD 651.50 per entry.
If manual processing is required, an additional USD 4.03 may apply.
This means a small commercial shipment may still pay the minimum MPF, while a high-value shipment will not pay more than the maximum amount.
For most ocean freight, air freight, LCL, FCL, wholesale cargo, and Amazon FBA shipments, the shipment is usually handled as a formal entry.
Informal Entries
For informal entries, MPF is usually charged as a set fee instead of a percentage of the shipment value.
Informal entries are commonly used for goods valued at USD 2,500 or less, including small commercial shipments, personal imports, express parcels, and some international mail shipments.
For informal entries:
Electronic informal entry: USD 2.69
Non-electronic informal entry: USD 8.06
CBP-prepared informal entry: USD 12.09
Because informal entry fees are fixed, the cost is usually much lower than formal entry MPF. However, not every shipment can qualify for informal entry. The entry type depends on cargo value, product type, import purpose, and CBP requirements.
Importers should confirm the correct entry type with a customs broker before shipping, especially when the cargo is close to the USD 2,500 value threshold.
How to Calculate MPF
For formal entries, the merchandise processing fee MPF is calculated based on the entry value of the imported goods.
The basic formula is:
MPF = Entry Value × 0.3464%
The entry value usually refers to the customs value of the merchandise declared to CBP. MPF is calculated on the merchandise value, excluding duty, freight, and insurance charges.
MPF Calculation Examples
Example 1: Entry value USD 20,000
MPF = USD 20,000 × 0.3464% = USD 69.28
Because USD 69.28 is above the minimum amount and below the maximum fee, the actual MPF charged is USD 69.28.
Example 2: Entry value USD 250,000
MPF = USD 250,000 × 0.3464% = USD 866.00
Because USD 866.00 exceeds the maximum fee, the actual MPF charged is USD 651.50.
These two examples show that the final MPF amount depends not only on the percentage calculation, but also on the minimum and maximum limits.
What Value Is Used to Calculate MPF?
MPF is normally based on the declared merchandise value, not the full logistics bill.
For calculation purposes, the base usually excludes:
International freight
Insurance charges
Destination delivery
Broker service charges
For example, if the commercial invoice shows USD 20,000 and ocean freight costs USD 2,000, MPF is usually calculated on USD 20,000, not USD 22,000.
This matters because many buyers mistakenly calculate the percentage on the full shipping bill instead of the declared goods value.
MPF vs Customs Duty: What Is the Difference?
MPF and customs duty are both related to U.S. imports, but they are not the same charge. Customs duty is a tax on imported goods, while MPF is a customs user fee for processing the entry.
| Feature | Customs Duty | MPF |
|---|---|---|
| Nature | Tax | User fee |
| Basis | Depends on product type and HTS code | Fixed rate of 0.3464% for formal entries |
| Fee limit | No standard maximum limit | Has minimum and maximum limits |
| Duty-free goods | Not charged if the duty rate is 0% | Usually still applies unless exempt |
The key point is that a shipment can be duty-free but still subject to the Merchandise Processing Fee MPF. This is why importers should check both customs duty and MPF when estimating the total landed cost.
When Does MPF Apply and When Is It Exempt?
MPF applies to most imports entering the United States when an import filing is required. It is especially common for commercial imports.
The exact amount depends on filing type, declared value, method of submission, and whether the goods qualify for an exemption.
Imports Commonly Subject to MPF
MPF is often assessed on:
Wholesale inventory
E-commerce stock
Ocean freight imports
Air cargo
Express imports
International mail items
Machinery, tools, electronics, furniture, and accessories
For most businesses, MPF should be treated as a normal part of U.S. clearance cost.
MPF Exemptions and Trade Agreements
Some imports may qualify for MPF exemptions under special rules, low-value programs, or eligible free trade agreements.
Possible exemption situations may include:
Certain low-value goods under Section 321
Products entered under specific CBP programs
Goods that qualify under eligible free trade agreements
Imports with valid origin documentation
Some trade agreements may affect MPF, including:
Panama Trade Promotion Agreement
Peru Trade Promotion Agreement
Colombia Trade Promotion Agreement
CAFTA DR
Other eligible U.S. trade agreements
However, exemptions are not automatic. The goods must meet the origin rules under the relevant agreement, and the buyer may need supporting documents such as origin certification.
Simply shipping from a country with a trade agreement does not guarantee an exemption. Incorrect claims can lead to delays, extra charges, storage fees, inspections, or penalties.
MPF for Imports from China to the USA
For imports from China to the United States, MPF is usually a standard customs cost. Most China-origin commercial imports do not qualify for MPF exemptions under U.S. free trade agreements, so importers should include the merchandise processing fee in their landed cost estimate.
A typical China to USA import cost may include:
Product value
Export handling charges
Ocean freight or air freight
U.S. customs duty
Merchandise processing fee
Harbor maintenance fee for ocean shipments
Customs broker fee
Final delivery
Storage fees when applicable
Inspection-related charges when applicable
MPF is not usually the biggest cost in a China to USA shipment, but it still matters.
For small formal entries, the minimum fee can make the final customs cost higher than expected. For high-value shipments, the maximum amount helps limit the fee.
Is MPF Included in DDP Shipping?
In many DDP shipping services, MPF is included in the total door-to-door price. A DDP quote may cover pickup in China, export handling, international freight, U.S. customs clearance, duty, MPF, taxes when applicable, and final delivery.
However, not every DDP quote is the same. Some quotes include customs duty and MPF, while others only include basic transportation and clearance support.
Before confirming a DDP shipment, importers should ask:
Is MPF included in the quote?
Are customs duty and taxes included?
Who acts as the importer of record?
Is customs broker service included?
Is final delivery included?
Are storage fees or inspection fees excluded?
Does the quote cover delivery to a business address, warehouse, or Amazon FBA location?
A clear DDP quote helps importers avoid misunderstandings after the shipment arrives in the United States.
How Importers Can Avoid Unexpected MPF and Customs Costs
MPF is not usually the largest import charge, but it often appears together with duty, customs broker fees, delivery charges, storage fees, and inspection-related costs. The best way to avoid surprises is to check the full customs and logistics cost before the shipment leaves the origin country.
Before shipping, importers should confirm:
Correct HTS code for the product
Accurate commercial invoice value
Country of origin
Importer of record information
Whether the shipment is a formal entry or informal entry
Whether duty, MPF, and customs broker fees are included in the quote
Whether the shipment may qualify for MPF exemptions
Whether storage fees, inspection fees, or final delivery charges are excluded
It is also important to separate MPF from the customs broker fee. MPF is collected by U.S. Customs and Border Protection as a customs user fee. A customs broker fee is charged by the broker for preparing and filing the customs entry.
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