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Duty Types

What is Merchandise Processing Fee?

A CBP fee assessed on most formal entries at 0.3464% of the goods' value, subject to minimum and maximum amounts. In the context of U.S. customs and tariff recovery, understanding merchandise processing fee is essential for navigating the CAPE refund process and ensuring accurate duty assessment.

Definition

The Merchandise Processing Fee (MPF) is a CBP user fee assessed on most formal entries. The rate is 0.3464% of the goods' customs value, subject to a minimum of $31.67 and a maximum of $614.35 per entry (as of 2026; CBP adjusts these annually). MPF applies to most consumption entries and is collected in addition to any applicable duties. Informal entries are assessed a flat MPF of $2, $6, or $9 depending on the entry method. MPF revenue supports CBP's trade processing operations.

How Merchandise Processing Fee Relates to Tariff Refunds

MPF is a fee, not a tariff. It is not part of the IEEPA or Section 301 surcharge and therefore is not refundable through the CAPE program. However, MPF does appear on the entry summary, and importers should ensure it is not incorrectly included in their refund calculations.

Example

An entry with a customs value of $200,000 is assessed: $50,000 in duties (25% Section 301) + $614.35 in MPF (0.3464% hits the cap). Only the $50,000 duty portion is CAPE-eligible, not the MPF.

Frequently Asked Questions

Is the MPF refundable through CAPE?
No. The CAPE program covers IEEPA and Section 301 tariff overpayments. MPF is a separate CBP user fee and is not part of the refund calculation.
Is there a cap on MPF?
Yes. MPF is capped at $614.35 per entry (2026 rate). For high-value entries, this cap significantly reduces the effective MPF rate.

Related Terms

DutyA tax imposed by the government on imported goods, based on the HTS classification and country of origin.Entry SummaryCBP Form 7501 — the document that declares the value, classification, and duty owed on imported goods.Formal EntryA customs entry required for commercial shipments valued over the de minimis threshold, requiring full documentation.CBPU.S. Customs and Border Protection — the federal agency that regulates imports, collects duties, and enforces trade laws.Customs ValueThe declared value of imported goods used as the basis for calculating ad valorem duties, per 19 U.S.C. section 1401a.

Legal References

  • 19 U.S.C. § 58c — Merchandise Processing Fee
  • 19 CFR § 24.23 — CBP User Fee

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