What is Harbor Maintenance Tax?
The Harbor Maintenance Fee (HMF) was created based on The Water Resource Act of 1986. The fee(s) are intended to require those who benefit from maintenance of U.S. ports and harbors to share the cost of the maintenance.
Is harbor maintenance fee a tax?
A harbor maintenance fee or HMF is a “user fee” collected by the U.S. Customs and Border Protection (CBP) for shipments imported via the ocean. “User fees” refer to non-duty or tax charges that are based on the mode of transportation (sea, air, rail, road) or the type of entry (formal vs. informal).
What is Harbour maintenance?
Definition. The Harbor Maintenance Fee (HMF) is a fee imposed by U.S. Customs and Border Protection (CBP) for U.S. imports shipped via ocean freight. It is charged at 0.125% of the value of the commercial cargo shipped through identified ports.
What is the current harbor maintenance fee?
0.125%
The HMF is calculated at 0.125% of the cargo value that was declared on the commercial invoice, with no minimum or maximum. When applicable, the HMF appears on your invoice as a Customs charge.
Which ports are exempt from HMF?
A Harbor Maintenance Fee (HMF) is exempt on an Entry Summary line (when MOT 10, 11, or 12) when the article is classified under some HTS chapter 98 provisions. Chapter 9808 has been added to that list. The HTS chapter 98 provisions that exempt the HMF are now 9804, 9805, 9806, 9807, 9808, and 9809.
What is MPF in shipping?
Content. The Merchandise Processing Fee (MPF) for formal entries is an ad valorem fee of 0.3464 percent. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges.
How is merchandise processing fee calculated?
How to calculate Merchandise Processing Fees. To calculate MPF, multiply the shipment value by 0.3464%. For example, MPF on a shipment valued greater than $2,500 USD but less than $7,400 USD will be assessed at the minimum fee of $26.79.
How do you calculate MPF?
To calculate MPF, multiply the shipment value by 0.3464%. For example, MPF on a shipment valued greater than $2,500 USD but less than $7,400 USD will be assessed at the minimum fee of $26.79. The maximum MPF per shipment is $519.76 (shipments valued at $144,000 USD or more will be assessed the maximum MPF).
How is customs MPF calculated?
How is MPF Calculated? The fee is ad valorem (according to value) and is 0.3464% of the value of the goods being imported. To calculate it you simply multiply the value of the goods by 0.3464, then divide the result by 100.
Who pays MPF?
The Merchandise Processing Fee (MPF) is a U.S. Customs charge assessed for most imports into the United States. The MPF is charged at 0.3464% of the entered value declared on the commercial invoice, with a minimum of $27.75, and a maximum of $538.40 per entry.
How is MPF calculated?
What is the minimum merchandise processing fee?
$27.75
The Merchandise Processing Fee (MPF) for formal entries is an ad valorem fee of 0.3464 percent. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges. The maximum amount of the fee shall not exceed $538.40 and shall not be less than $27.75.
What is a merchandising fee?
What is MPF? The merchandise processing fee is the U.S. Customs and Border Protection charge associated with most imports entering the United States, whether formal or informal entry. It’s a user fee collected designed to help process merchandise entering into the U.S. and to monitor customs and trade compliance.
What is the minimum MPF fee?
The Merchandise Processing Fee (MPF) for formal entries is an ad valorem fee of 0.3464 percent. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges. The maximum amount of the fee shall not exceed $538.40 and shall not be less than $27.75.
Who needs to pay MPF?
Employees and employers are both required to make mandatory contributions of 5% of the employee’s relevant income into the employee’s MPF account, subject to the minimum and maximum relevant income levels. Employers must make mandatory contributions for their employees with their own funds.
What is the minimum MPF?
The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change. The MPF minimum and maximum for formal entries (class code 499) will change. The minimum will change from $27.23 to $27.75 and the maximum will change from $528.33 to $538.40.
Is MPF mandatory?
Who is exempt from MPF?
Exempt Persons employees and self-employed persons who are under 18 or over 65 years of age. domestic employees. self-employed hawkers. people covered by statutory pension or provident fund schemes, such as civil servants and subsidized or grant school teachers.
Is MPF refundable?
While MPF can be excluded at the time of import, under USMCA, MPF cannot be refunded post entry. MPF is the Merchandise Processing Fee.
Who is exempted from MPF?
What are harbor maintenance fees (HMF)?
What are Harbor Maintenance Fees (HMF)? Harbor Maintenance Fees Description: The Harbor Maintenance Fee requires those who benefit from the maintenance of US ports and harbors to share the cost of the maintenance. It is struck at 0.125% of the value of the commercial cargo shipped through seaports only.
What happens if an importer fails to pay the harbor maintenance fee?
An importer will be liable for payment of liquidated damages under the basic importation and entry bond, for failure to pay the harbor maintenance fee, as provided in such bond. (2) Application for relief.
How to make supplemental payments on quarterly-paid harbor maintenance fees?
To make supplemental payments on any quarterly-paid harbor maintenance fee or seek refunds of quarterly-paid harbor maintenance fees pertaining to other than export movements, the procedures set forth in paragraph (e) (4) (iii) must be followed. (ii) Time limit for refund requests.