Get to know the vital terms of Logistics and Supply Chain Management.
MPF stands for Merchandise Processing Fee, which is an ad valorem charge levied by U.S. Customs and Border Protection on importations into the United States. The fee collected by CBP at the point of importation is a cost of processing and inspection to ensure that the goods comply with US customs regulations, thus ensuring smooth and secure international trade.
The MPF is collected by CBP or its licensed collector upon the arrival of imported merchandise at the U.S. border. It applies to almost all imported merchandise but not to everything. Certain goods from some countries are exempted under specific trade agreements.
The MPF is assessed at the time of entry on all imports into the United States either at the time of entry into a port in the United States or upon entry of importation documentation. This is typically made on behalf of the import business by importers, their customs brokers, or agents involved in making the entry, so all duties, taxes, and charges, including the MPF, are appropriately assessed.
The MPF helps CBP keep processing times efficient, as well as conducting rigorous inspections to safeguard the U.S. market from goods that are not in compliance, counterfeit, or present other regulatory risks.
Regulatory Compliance: The MPF promotes compliance through importers with customs regulations in order not to be penalized.
Trade Facilitation: The MPF revenues enable CBP to invest in programs and technology that enhance the process of customs.
Security It ensures that the imported goods to the U.S. meet the specified safety and quality standards thus safeguarding the interests of both the importing business as well as the consumer.
The items Processing Fee is an essential aspect of bringing items to America. It balances the inspection funds with the compliance aspect of regulation. It adds very little to the importing process but plays a critical role in maintaining a safe and smooth business.