Harbor Maintenance Fee (HMF)

Definition

The Harbor Maintenance Fee (HMF) is an ad valorem fee assessed by U.S. Customs and Border Protection (CBP) on all products imported into the United States via ocean vessel through U.S. ports. This mandatory charge contributes funding for the maintenance and improvement of U.S. harbors and waterways.

Core Calculation

The HMF is calculated as a fixed percentage of the declared cargo value, regardless of whether the goods are dutiable or duty-free.

• Calculation Rate: 0.125% (or 0.00125) of the cargo value listed on the commercial invoice.

• Scope: The fee is assessed on the declared value with no minimum or maximum limit.

• Applicability: Applies to both dutiable and duty-free products.

Exclusions and Routing Considerations

A key exception applies to goods that utilize alternative North American entry points.

If a shipment is transporting via ocean to a Canadian port, and subsequently routed through Canada into the U.S., it will not be subject to the HMF assessment.

Expert Advice and Invoicing

Because the total value of the shipment is required to calculate the final amount, the HMF is typically not included in initial freight quotes. However, it is an enforceable Customs charge that must be paid.

When applicable, the HMF appears on your final invoice as a distinct Customs charge. While we cannot quote this fee initially, clients may easily estimate it using the 0.125% calculation based on their commercial invoice value.

Key Takeaways

• The HMF is a mandatory fee for ocean freight entering U.S. ports.

• It is calculated strictly based on 0.125% of the commercial invoice value.

• Shipments routed through Canadian ports before entering the U.S. are exempt from HMF.