MPF and HMF Fees Explained – 0.3464%, Min/Max, When Each Applies

Most importers budget for duty. Fewer budget for the two user fees that sit alongside it on every customs entry. The Merchandise Processing Fee and the Harbor Maintenance Fee are not duties. They are CBP user fees charged in addition to duty on virtually every formal US import. Getting them wrong in your landed cost model means every margin calculation is wrong by a predictable amount.

Merchandise Processing Fee – Rate, Minimum, Maximum

The Merchandise Processing Fee funds CBP customs processing operations. It applies to formal entries and certain informal entries regardless of transport mode: ocean, air, truck, or rail.

2026 MPF rates:
Formal entry (commercial value over $2,500): 0.3464% of customs value
Minimum per formal entry: $33.58
Maximum per formal entry: $651.50

Informal entry (commercial value under $2,500): flat fee of $2.49 for manual processing or $1.16 for electronic processing.

The minimum and maximum create a non-linear cost curve. At low shipment values, MPF costs more as a percentage of customs value than the 0.3464% headline rate suggests. At high shipment values, MPF costs less.

MPF breakeven points:
Below $9,694 customs value: MPF hits the $33.58 minimum. You pay $33.58 regardless of the lower calculated amount.
Between $9,694 and $188,076 customs value: MPF equals exactly 0.3464% of customs value.
Above $188,076 customs value: MPF hits the $651.50 maximum. You pay $651.50 regardless of the higher calculated amount.

Real dollar examples:

$5,000 shipment: 0.3464% = $17.32. But minimum applies. You pay $33.58.
$50,000 shipment: 0.3464% = $173.20. Within range. You pay $173.20.
$300,000 shipment: 0.3464% = $1,039.20. Maximum applies. You pay $651.50.

For high-value shipments, the MPF cap creates a consolidation opportunity covered in a later section.

The MPF is calculated on the entered customs value of the goods. This is typically the transaction value, meaning what you actually paid the supplier. It does not include duties, freight, or insurance. Those are added on top.

Harbor Maintenance Fee – Rate, Applicability, No Cap

The Harbor Maintenance Fee funds maintenance of US ports and harbors under the Army Corps of Engineers. It was established by the Water Resources Development Act of 1986 and the rate has been unchanged since 1987.

2026 HMF rate: 0.125% of cargo value
Minimum: None
Maximum: None

HMF applies only to ocean freight. Air cargo, truck freight, rail freight, and courier shipments do not pay HMF. If your goods arrive by sea at a US port, HMF applies. If they arrive by air at a US airport, only MPF applies.

The absence of a cap on HMF is important for high-value ocean shipments. On a $1,000,000 container, MPF is capped at $651.50. HMF on the same container is $1,250. HMF becomes the larger of the two fees above approximately $521,000 in cargo value, where HMF ($651.25) exceeds the MPF cap ($651.50).

Real dollar examples:

$50,000 ocean shipment: HMF = $50,000 × 0.00125 = $62.50
$200,000 ocean shipment: HMF = $200,000 × 0.00125 = $250.00
$1,000,000 ocean shipment: HMF = $1,000,000 × 0.00125 = $1,250.00

For air freight shipments, HMF is $0. For the same $50,000 shipment arriving by air: MPF = $173.20, HMF = $0. Total user fees: $173.20. The same shipment by ocean: MPF = $173.20, HMF = $62.50. Total user fees: $235.70.

The Complete Landed Cost Formula

MPF and HMF are not optional lines. They belong in every landed cost calculation from the first day you model a new product.

Landed Cost = Product Cost + International Freight + Marine Insurance + Duty + MPF + HMF (ocean only) + Customs Broker Fee + Drayage + Domestic Transport

Working example: $50,000 electronics shipment by ocean from Vietnam, 6% duty rate.

Line Item	Amount
Product cost	$50,000.00
International ocean freight	$2,800.00
Marine insurance (0.5%)	$250.00
Duty (6% of $50,000)	$3,000.00
MPF (0.3464% of $50,000)	$173.20
HMF (0.125% of $50,000)	$62.50
Customs broker fee	$250.00
Drayage and domestic transport	$400.00
Total Landed Cost	$56,935.70

MPF plus HMF add $235.70 on this shipment. That is 0.47% of the product cost. Across 20 entries per year at similar values, that is $4,714 per year in user fees that sellers who model only duty are missing.

The HS Duty Estimator calculates estimated duty and MPF on your specific HTS code and shipment value, giving you the core customs cost to plug into your landed cost model.

USMCA Exemption, Consolidation Strategy, and Drawback

USMCA MPF Exemption

Goods qualifying under the United States-Mexico-Canada Agreement are exempt from MPF when properly claimed on the customs entry. The exemption applies only to MPF, not HMF. HMF still applies to qualifying USMCA goods arriving by ocean.

The key requirement: goods must genuinely originate in the US, Mexico, or Canada under USMCA rules of origin. The rules are product-specific and can be complex. A product assembled in Mexico from Chinese-origin components may not qualify for USMCA treatment without meeting the specific tariff shift or regional value content rules for that product category.

Textiles and apparel imported under Tariff Preference Level provisions are generally not eligible for the MPF exemption even when imported under USMCA, because TPL goods do not technically originate in the USMCA territory under the agreement’s rules.

Most US free trade agreements include MPF exemptions for qualifying goods. Check the Special column in the HTS for your product’s HTS code to confirm which trade programs apply.

Consolidation Strategy

MPF is charged per formal entry, not per shipment value. Five separate entries from the same supplier each pay MPF individually. One consolidated entry covering the same goods pays MPF once, capped at $651.50.

Example: Five $40,000 entries from the same supplier in one month.
Five separate entries: 5 × ($40,000 × 0.3464%) = 5 × $138.56 = $692.80 total MPF
One consolidated $200,000 entry: $200,000 × 0.3464% = $692.80, but capped at $651.50

Saving on this consolidation: $41.30. At 12 months per year: $495.60 per year from one supplier.

The savings grow significantly at higher values. Twenty $40,000 entries per year: 20 × $138.56 = $2,771.20. Four consolidated $200,000 entries: 4 × $651.50 = $2,606. Annual saving: $165.20.

Consolidation must follow CBP rules around same supplier, same port, and entry timing. Your customs broker can advise on whether your import pattern qualifies.

MPF and HMF Drawback Eligibility

Both MPF and HMF are eligible for duty drawback when imported merchandise is subsequently exported or destroyed under CBP supervision. Importers can recover up to 99% of MPF and HMF paid under the drawback program. This is relevant for sellers who import goods and later re-export them or process them into exported products.

How De Minimis Elimination Changed MPF Exposure

Before August 2025, shipments valued at $800 or less entered the US under Section 321 de minimis treatment with no MPF, no HMF, and no formal entry. Millions of e-commerce packages per day cleared with zero user fees.

As covered in the Section 321 De Minimis guide, de minimis treatment was suspended for China in May 2025 and for all countries in August 2025. Every package that previously cleared with no MPF now faces MPF on informal entry at $1.16 for electronic processing or the full 0.3464% on formal entries.

For sellers shipping hundreds or thousands of individual packages per month that previously qualified for de minimis, the MPF exposure is a new recurring cost that needs to be built into pricing.

Example: 500 packages per month at $150 average value, all now requiring informal entry.
Electronic informal entry MPF: 500 × $1.16 = $580 per month
Manual informal entry MPF: 500 × $2.49 = $1,245 per month

The shift from zero MPF to $580 to $1,245 per month from de minimis elimination alone, before any duty costs are considered.

To find the correct HTS code for your products and calculate the full customs cost including duty and MPF, see the HS Code Finder Guide.

Rates verified June 19, 2026. See changelog.

FAQ

Q: What is the Merchandise Processing Fee (MPF) in 2026?
A: The MPF is 0.3464% of the customs value of imported goods on formal entries. The minimum is $33.58 per formal entry and the maximum is $651.50 per formal entry in 2026. Informal entries under $2,500 pay a flat fee of $1.16 for electronic processing or $2.49 for manual processing. MPF applies regardless of transport mode: ocean, air, truck, or rail. It is charged in addition to duty and appears on CBP Form 7501.

Q: What is the Harbor Maintenance Fee (HMF) in 2026?
A: The HMF is 0.125% of the cargo value on ocean freight shipments. There is no minimum and no maximum. The rate has been unchanged since 1987. HMF applies only to goods arriving by ocean vessel at US ports. Air cargo, truck freight, rail, and courier shipments do not pay HMF. On a $50,000 ocean shipment, HMF is $62.50.

Q: Are MPF and HMF exempt for USMCA goods?
A: MPF is exempt for goods that genuinely qualify under USMCA rules of origin when properly claimed on the entry. HMF is not exempt, even for USMCA-qualifying goods arriving by ocean. The USMCA MPF exemption applies only to goods that meet product-specific rules of origin under the agreement. Goods imported under Tariff Preference Level provisions are generally not eligible for the MPF exemption even under USMCA.

Q: Can MPF and HMF be recovered through duty drawback?
A: Yes. Both MPF and HMF are eligible for duty drawback when imported merchandise is subsequently exported or destroyed under CBP supervision. Importers can recover up to 99% of MPF and HMF paid through the drawback program. This is separate from duty drawback and requires documentation of the export or destruction. Use the HS Duty Estimator to calculate your total customs cost including MPF before modeling drawback recovery.