Merchandise Processing Fee (MPF)
Regional Schemes · US Import Rules
What is Merchandise Processing Fee (MPF)?
The Merchandise Processing Fee (MPF) is a US customs user fee charged on nearly every formal or informal commercial entry into the United States, separate from and in addition to any customs duty owed - the closest thing the US has to an import VAT, though it’s a flat processing fee rather than a percentage-based tax.
The exact fee depends on the entry type: informal entries (generally $2,500 or less) pay a flat fee, while formal entries pay a percentage of value subject to a minimum and maximum cap, adjusted periodically by US Customs and Border Protection.
MPF is basically the US customs system's version of a processing or handling fee - like a bank charging you to process a transaction, it's a fee for the paperwork and administrative work of clearing your shipment, separate from any tax on the goods themselves.
When to Use It
MPF applies to essentially every US-bound commercial shipment regardless of value, since the US has no VAT and no de minimis exemption - it’s a charge to factor in alongside duty on any US import, however small.
Frequently Asked Questions About Merchandise Processing Fee (MPF)
Does MPF replace customs duty?
No - it’s charged in addition to any customs duty owed, not instead of it. MPF and duty are two separate line items on a US import.
Does MPF vary by product category the way duty does?
No - it’s calculated based on entry type and shipment value, not the specific product category, unlike duty which varies significantly by HS code and country of origin.
Is MPF the same as VAT?
No - the US has no VAT at all. MPF is a processing fee, not a consumption tax, and it’s a much smaller charge than VAT typically is in VAT-based systems.
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