25 7 月
by Mr.Dela CruzGeneral

Overlooked Customs Fees: Harbor Maintenance Fee and Merchandise Processing Fee

The Harbor Maintenance Fee (HMF) and Merchandise Processing Fee (MPF) are two fees that are often overlooked, and show up as a surprise for shippers when they receive their invoices. Although the two fees may be smaller charges, it is still important to take them into account when preparing for shipments. These are common maintenance fees that forwarders often come across when dealing with customs brokerages for imported cargo goods. 

What is the Harbor Maintenance Fee (HMF)?

The Harbor Maintenance Fee is imposed by the U.S. Customs and Border Protection for imported cargos via ocean freight. Created by the Water Resource Act in 1986 to share the costs of harbor construction, inland waterway transport, and flood-control projects, the Harbor Maintenance Fee helps with port and harbor maintenance. And the Harbor Maintenance Fee has not been charged on exported cargo since 1998.

What Types of Packages Are Required to Pay For the Harbor Maintenance Fee?

 Harbor Maintenance Fee is required for the following packages: 

  • Imported shipments 
  • Passengers on cruise ships
  • Foreign-Trade-Zone admissions 
  • Domestic shipments 

It is important to keep in mind that all shipments will be subjected to the Harbor Maintenance Fee even if they are a part of a trade agreement such as USMCA. 

What is the Merchandise Processing Fee (MPF)?

Unlike the Harbor Maintenance Fee that is only imposed on ocean freight, both air and ocean cargo are subjected to the Merchandise Processing Fee. It is also a fee imposed by the U.S. Customs, usually paid when you pay taxes and duties on your shipment’s entry summary. There are exemptions to the Merchandise Processing Fee: the fee is waived for packages that qualify certain Free Trade Agreements (FTA) such as NAFTA and CAFTA. 

What Types of Packages Are Required to Pay For the Merchandise Processing Fee?

The Merchandise Processing Fee is required for the following packages: 

  • Air cargo
  • Ocean cargo 
  • International mail 

How is the Merchandise Processing Fee Calculated?

Calculation: The Harbor Maintenance Fee is charged at 1/800 or 0.125% of the cargo value in transit.