MERCHANDISE PROCESSING FEE RATE CHANGE INFORMATION

October 24, 2011

RECENT TRADE LEGISLATION H.R. 2832 CHANGED THE MERCHANDISE PROCESSING FEE RATE FOR FORMAL
ENTRIES (CLASS CODE 499) FROM 0.21% (.0021) TO 0.3464% (.003464). THE MINIMUM MERCHANDISE PROCESSING AMOUNT OF $25.00 AND THE MAXIMUM MERCHANDISE AMOUNT OF $485.00 WERE NOT CHANGED.

CBP IS IN THE PROCESS OF MODIFYING ITS AUTOMATED SYSTEM (ABI) TO ACCEPT THE NEW MPF RATE OF 0.3464%. AT THE PRESENT TIME, CBP DOES NOT HAVE AN EXACT DATE WHEN THE MPF SYSTEM CHANGES WILL BE COMPLETED.

CBP WILL NOTIFY THE TRADE IN A FUTURE MESSAGE WHEN THE TRADE CAN BEGIN SUBMITTING THEIR SUMMARIES WITH THE NEW MPF RATE. CBP PLANS TO PROVIDE THE TRADE WITH AN APPROXIMATELY ONE WEEKS NOTICE REGARDING THE DATE THAT CBP WILL BE ABLE TO ACCEPT THE NEW MPF RATE. THIS PROCEDURE APPLIES TO BOTH ACS AND ACE FILED SUMMARIES.

THE CATAIR, ENTRY SUMMARY, RECORD 30, NOTE 4 INDICATES THE MPF FEE VALIDATION DATES USED BY THE SYSTEM TO DETERMINE THE MPF RATE. THE FOLLOWING ORDER IS USED BY THE SYSTEM TO DETERMINE THE MPF RATE:

DATE                               SOURCE

ENTRY DATE                         DETERMINED BY CBP
ESTIMATED ENTRY DATE               RECORD IDENTIFIER 10
CARGO RELEASE DATE                 DETERMINED BY CBP
PRELIMINARY STATEMENT PRINT DATE   RECORD IDENTIFIER 30
ESTIMATED DATE OF ARRIVAL          RECORD IDENTIFIER 20 & H1
SYSTEM DATE                        ACS PROCESSING DATE

New MPF Rate Is More than a 60% Increase over Old Rate

The new MPF rate of .3464% for formal entries, which represents more than a 60% increase over the prior MPF rate of .21% for formal entries, was implemented with an October 1 start date by P.L. 112-40, which was signed into law on October 21.

The new laws did not change the minimum MPF of $25 for formal entries, nor the maximum MPF of $485 for formal entries. This means that a greater number of lower value shipments will be above the $25 minimum, and a greater number of higher value shipments will be above the $485 cap.

Examples of rate changes under the new MPF for formal entries include (new and old listed):

  • $5,000 entry would pay $25 minimum (same $25 minimum)
  • $7,500 entry would pay $26 (from $25 minimum)
  • $10,000 entry would pay $35 (from $25 minimum)
  • $25,000 entry would pay $87 (from $53)
  • $50,000 entry would pay $173 (from $105)
  • $100,000 entry would pay $346 (from $210)
  • $120,000 entry would pay $416 (from $252)
  • $150,000 entry would pay $485 cap (from $315)
  • $200,000 entry would pay $485 cap (from $420)
  • $225,000 entry would pay $485 cap (from $473)
  • $250,000 entry would pay $485 cap (same $485 cap)

CBP Ports Expected to Bill Any Retroactive Fees Due of $20 or More

Officials state that CBP expects to generate bills for the period that began on October 1 through the date before the higher rate is implemented, to collect the difference between the old and new rates for that time period. Officials expect that any differences in the MPF rate for a formal entry that is less than $20 will not be billed