Merchandise Processing Fee (MPF): We’ll Calculate Your Costs

The Merchandise Processing Fee (MPF) may not be the most expensive cost associated with importing, but it is a sometimes overlooked customs user fee that importers should keep in mind. Calculating it is a fairly simple matter, though some confusion exists due to changes made by US Customs and Border Protection (CBP) in 2025.

Key Takeaways

• The Merchandise Processing Fee for a formal entry is set at 0.3464 percent ad valorem of a shipment’s value.
• CBP also sets a minimum MPF of $33.58 and a maximum of $651.50.
• Informal entries have an MPF of $2.69, $8.06, or $12.09 depending on whether the entry is automated and if CBP prepared the release themselves.
• Importers should check to see if this fee has changed toward the end of each fiscal year.

Let’s start by clearing up some confusion about how MPFs changed in 2025.

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Current Merchandise Processing Fee

As of this writing, the MPF for a formal entry is set at 0.3464% of the shipment’s value. The valuation does not include duties, tariffs, or other customs fees. 

CBP occasionally reevaluates this cost to align it with inflation, which causes confusion with some importers who assume the fee is fixed. The agency also sets the minimum and maximum thresholds for the MPF, which for the 2026 fiscal year are:

• Minimum MPF: $33.58
• Maximum MPF: $651.50

These are for formal entries, which must be filed for shipments valued at $2,500 or more and for some lesser-value shipments that are tightly regulated by Partner Government Agencies (PGAs) such as the Food and Drug Administration (FDA).

The processing fee for informal shipments (which usually doesn’t apply to import/export businesses) is either $2.69, $8.06, or $12.09. The cost varies based on how the entry was submitted.

Determining your MPF is a simple matter: all you need is a calculator.

Related: How to Calculate Landed Cost of Imported Goods

How to Calculate Your Merchandise Processing Fee

The MPF is calculated according to your shipment’s value. For example, let’s say you’re importing a shipment of apparel valued at $20,000. Using the percentage 0.3464%, we can simply multiply the value by .003464 for an MPF of $69.28.

As stated earlier, the maximum fee is $651.50. This applies to shipments valued at approximately $188,000 or more.

There are some situations where you may not have to pay the MPF, usually thanks to a trade agreement with a foreign trade partner.

MPF Exemptions

Shipments that are exempt from merchandise processing fees are identified in the Code of Federal Regulations, Title 19, Chapter 1, Part 24. They usually stem from trade agreements, although not every trade agreement has an MPF exemption.

Agreements that do have such an exemption include:

• The United States-Canada-Mexico Agreement (USMCA)
• The Australia-United States Trade Agreement (AUFTA)
• Dominican Republic-Central America FTA (CAFTA-DR)
• Caribbean Basin Economic Recovery Act (CBERA)
• Israel Free Trade Agreement (ILFTA)

If you’re unsure as to whether your imports qualify for MPF exemptions, working with a customs broker is an easy way to make that determination and save money in the long run.

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Clearing customs in the United States isn’t always an easy task: that’s why partnering with the Licensed Customs Brokers at USA Customs Clearance is a smart way to cut through the red tape and start growing your business.Call us at (855) 912-0406 or submit a contact form online to start taking the guesswork out of importing and customs clearance.