Merchandise Processing Fee (MPF) Entry Consolidation

Definition

MPF Entry Consolidation is a customs strategy designed to minimize the cost of the Merchandise Processing Fee (MPF), which is assessed by U.S. Customs on nearly all imports into the United States. Our program achieves this by consolidating multiple individual entries that arrive via the same conveyance into one master entry.

This consolidation limits the exposure to the maximum MPF charge. Only the single consolidated entry is subject to the maximum fee, while all subsequent entries included in the grouping are entirely exempt from the fee.

MPF Calculation Details

The Merchandise Processing Fee (MPF) is currently charged based on the cargo value declared on the commercial invoice.

• The standard rate is 0.3464% of the cargo value.

• Minimum fee per entry: $32.71 (as of October 1, 2024).

• Maximum fee per entry: $634.62 (as of October 1, 2024).

Note: For entries valued at $2,500 or less (informal entries), the MPF is a set fee of $2.62, $7.85, or $11.78 per shipment, depending on the filing method.

Core Process: How Consolidation Works

In a standard filing process, if an importer files multiple separate entries on the same arrival conveyance, each entry is subject to its own calculation of MPF, potentially reaching the maximum fee threshold multiple times.

Under MPF Consolidation:

1. Multiple qualifying entries arriving on the same conveyance are identified and grouped.

2. These entries are filed under a single entry number (the consolidated entry).

3. Only this single master entry is subject to the MPF calculation and the $634.62 maximum limit.

4. All subsequent shipments included in the consolidation are effectively exempt, realizing substantial operational and financial savings.

Expert Advice

The MPF is assessed regardless of whether the goods are dutiable or duty-free. However, certain goods may qualify for waivers under specific Free Trade Agreements (FTAs), such as NAFTA or CAFTA. Importers should always review their commodities for FTA eligibility.

Consult with your customs broker to ensure accurate classification and to leverage MPF consolidation strategies fully. Watching our on-demand webinar is recommended for a deeper dive into potential savings visualizations.