What Is the Merchandise Processing Fee (MPF)?

What the MPF Is (and Isn't)

The Merchandise Processing Fee is a user fee that US Customs and Border Protection charges to cover the cost of processing imports. It is not a tariff and not a duty — it's a separate charge that applies on top of whatever duty your goods owe, and you pay it even on duty-free merchandise.

The critical thing to understand: the MPF is based on the value of your goods, not on the duty. So even a product that enters at a 0% tariff rate still owes the MPF. It's collected by CBP at the time of entry, alongside the duty and the Harbor Maintenance Fee, before your goods are released.

The FY2026 MPF Rate and Limits

For formal entries, the MPF is an ad valorem fee of 0.3464% of the value of the imported goods (excluding duty, freight, and insurance). That percentage rate did not change for fiscal year 2026 — but the floor and ceiling did.

Effective October 1, 2025 (the start of FY2026):

• Minimum MPF: $33.58 per formal entry
• Maximum MPF: $651.50 per formal entry

So the fee is 0.3464% of value, but never less than $33.58 and never more than $651.50. That means the maximum kicks in at a shipment value of roughly $188,000 — above that, the MPF is capped at $651.50 no matter how large the entry.

Formal vs. Informal Entries

How the MPF is charged depends on the type of entry:

• Formal entries (generally commercial shipments valued over $2,500) pay the ad valorem MPF: 0.3464% of value, with the $33.58 minimum and $651.50 maximum described above.
• Informal entries (generally shipments $2,500 or under, and most personal shipments) pay a flat MPF instead of a percentage. In FY2026 that flat fee is $2.69, $8.06, or $12.09 per shipment, depending on how the entry is processed (for example, whether it's filed manually or electronically).

This is why a $2,000 informal entry might carry only a $2.69 MPF, while a $2,600 formal entry jumps to the $33.58 minimum — crossing the formal-entry threshold changes the whole fee structure.

A Worked Example

Take three shipments to see how the MPF behaves:

• $1,500 informal entry: flat MPF of $2.69 (the percentage doesn't apply to informal entries).
• $8,000 formal entry: 0.3464% × $8,000 = $27.71 — but that's below the floor, so you pay the $33.58 minimum.
• $300,000 formal entry: 0.3464% × $300,000 = $1,039.20 — but that's above the ceiling, so you pay the $651.50 maximum.

Notice the fee is only a straight percentage in the middle band (roughly $9,700 to $188,000 in value). Below that you hit the minimum; above it you hit the maximum. Run your specific value through the landed cost calculator to see where you land.

Who Pays It — and Which Goods Are Exempt

The importer of record pays the MPF. Some imports are exempt or eligible for reduced treatment, most notably goods that qualify under certain free trade agreements. For example, goods that qualify under USMCA are generally exempt from the MPF — one of the underappreciated benefits of claiming a trade-program origin. Products from certain other FTA partners and some special programs can also be MPF-exempt.

Because the MPF applies per entry, the way shipments are consolidated or split can affect the total fee — consolidating multiple small shipments into one formal entry can save on repeated minimums, while splitting a large entry never helps because each entry carries its own fee.

Getting the MPF Back Through Drawback

Here's what many importers miss: the MPF is recoverable through duty drawback. If you import goods, pay the MPF, and then export or destroy those goods (or manufacture them into something exported), drawback can refund up to 99% of the duties and the MPF and HMF you paid.

For high-volume importers repeatedly hitting the $651.50 maximum, that recoverable MPF adds up fast. It's often overlooked because people think of drawback as a duty refund and forget the fees ride along with it. See duty drawback explained for eligibility, and estimate your recovery in the drawback calculator.