Study guide
8.2 Customs User Fees: Merchandise Processing Fee and Harbor Maintenance Fee
U.S. Customs Broker License Examination CBLE
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1 Chapter 1: Exam Logistics, Eligibility, and Professional Governance
1.1 CBLE Examination Format, Scoring, and Category Structure 1.2 Eligibility Requirements, Application Procedures, and License Issuance 1.3 Triennial Status Reporting and Continuing Education Requirements 1.4 Statutory Fees, Application Vetting, and Appeals of Adverse Decisions
2 Chapter 2: Harmonized Tariff Schedule Classification Principles
2.1 HTSUS Structure, Legal Hierarchy, and Chapter Notes 2.2 General Rules of Interpretation 1 through 4 2.3 GRIs 5 and 6 and Classification Doctrines 2.4 Chapter 98 Special Classification Provisions 2.5 CBP Rulings, CROSS, and Classification Research (19 CFR Part 177) 2.6 Textile and Apparel Classification (Section XI)
3 Chapter 3: Customs Valuation and Appraisement
3.1 The Valuation Hierarchy and Price Actually Paid or Payable 3.2 Statutory Additions and Exclusions from Transaction Value 3.3 Related-Party Transactions and First Sale for Export 3.4 Alternative Valuation Methods: Deductive, Computed, and Fallback 3.5 Allowances for Shortage, Damage, Casualty, and Abandonment (19 CFR Part 158) 3.6 The Rate of Duty Date and the Entered Value Declaration
4 Chapter 4: Right to Make Entry, Documentation, and Entry Procedures
4.1 Right to Make Entry and Customs Power of Attorney 4.2 Entry Filing, Immediate Delivery, and CBP Form 3461 4.3 Entry Summary, CBP Form 7501, and Automated Commercial Environment 4.4 Entry Types, Informal Entry, and In-Bond Transit 4.5 Commercial Invoice and Entry Documentation Requirements (19 CFR Part 141, Subpart F) 4.6 Importer of Record Numbers, CBP Form 5106, and Schedule D Port Codes 4.7 The Practical Exercise: Working a 7501, an Invoice, and a 5106 Under Time Pressure 4.8 Examination, Detention, Conditional Release, and Redelivery
5 Chapter 5: Customs Bonds and Revenue Protection
5.1 Customs Bond Structure, Parties, and Legal Obligations 5.2 Continuous vs. Single Transaction Bonds and Activity Codes 5.3 Bond Formula Calculations, Sufficiency, and Breach
6 Chapter 6: Liquidation, Protests, and Post-Summary Adjustments
6.1 Liquidation Process, Bulletin Notice, and Statutory Deemed Liquidation 6.2 Administrative Protests and Judicial Review 6.3 Post Summary Corrections and Reconciliation
7 Chapter 7: Country of Origin, Marking Rules, and Trade Agreements
7.1 Substantial Transformation and Origin Determination 7.2 Country of Origin Marking and Exceptions 7.3 United States-Mexico-Canada Agreement (USMCA) 7.4 Other Free Trade Agreements and Preference Programs
8 Chapter 8: Customs Duties, Taxes, User Fees, and Trade Remedies
8.1 Duty Calculations: Ad Valorem, Specific, Compound, and Column Rates 8.2 Customs User Fees: Merchandise Processing Fee and Harbor Maintenance Fee 8.3 Trade Remedy Measures: Antidumping, Countervailing, Section 301, and Section 232
9 Chapter 9: Customs Broker Licensure, Operations, and Compliance
9.1 Broker Licensing, National Permits, and Office Supervision 9.2 Responsible Supervision and Control 9.3 Broker Duties, Diligence, Funds Handling, and Prohibited Relations 9.4 Recordkeeping, Customs Audits, and Disciplinary Sanctions 9.5 "Customs Business" Defined and Unlicensed Practice 9.6 Change Notifications and Broker Employee Reporting (19 CFR 111.28(b), 111.30)
10 Chapter 10: Special Regimes, Drawback, Enforcement, and Partner Government Agencies
10.1 Foreign Trade Zones and Customs Bonded Warehouses 10.2 Duty Drawback: Manufacturing and Unused Merchandise 10.3 Customs Enforcement, Section 1592 Penalties, and Prior Disclosure 10.4 Partner Government Agencies and Border Security Compliance 10.5 Intellectual Property Rights Border Enforcement (19 CFR Part 133)
11 Chapter 11: Quota Administration and the Rotating Specialty Category
11.1 Absolute and Tariff-Rate Quotas: Definitions, Establishment, and Administration 11.2 Quota Priority, the Opening Moment, and Prorating 11.3 Quota Interactions: Foreign Trade Zones, Warehouses, Visas, and Bonds
8.2 Customs User Fees: Merchandise Processing Fee and Harbor Maintenance Fee
Key Takeaways Explain This Topic AI
The Merchandise Processing Fee (MPF) for formal commercial entries under 19 U.S.C. § 58c(a)(9) and 19 CFR 24.23 is 0.3464% ad valorem of entered customs value, subject to statutory minimum and maximum caps that CBP adjusts for inflation each fiscal year under the FAST Act — $33.58 and $651.50 for FY 2026, effective October 1, 2025.
At the FY 2026 caps, formal entries valued at or below about $9,694 pay the flat $33.58 minimum, entries between about $9,694 and about $188,077 pay the exact 0.3464% calculation, and entries above about $188,077 pay the flat $651.50 maximum.
Originating goods under specific Free Trade Agreements (including USMCA, CAFTA-DR, Chile, Singapore, Colombia, and Peru) are statutorily exempt from MPF; under HTSUS 9802.00.80, MPF is assessed solely on the foreign value added.
The Harbor Maintenance Fee (HMF) under 26 U.S.C. § 4461 and 19 CFR 24.24 is assessed at 0.125% ad valorem on commercial vessel cargo loaded or unloaded at declared U.S. ports, with no minimum or maximum dollar ceiling.
Unlike MPF, HMF has zero Free Trade Agreement exemption: vessel shipments under USMCA or CAFTA-DR arriving at U.S. deepwater ports remain fully liable for the 0.125% HMF, whereas air, truck, and rail cargo are exempt.
Last updated: September 2026
8.2 Customs User Fees: Merchandise Processing Fee and Harbor Maintenance Fee
Core Regulatory Tenet: Merchandise Processing Fee (MPF) under 19 U.S.C. § 58c / 19 CFR 24.23: 0.3464% ad valorem subject to annual FAST Act minimum and maximum statutory caps ($33.58 / $651.50 for FY 2026) | USMCA and qualifying FTAs completely exempt from MPF | Harbor Maintenance Fee (HMF) under 26 U.S.C. § 4461 / 19 CFR 24.24: 0.125% ad valorem on commercial vessel cargo at declared U.S. ports with NO minimum or maximum cap | FTAs provide ZERO exemption from HMF.
The Statutory Origin and Architecture of Customs User Fees
In addition to basic customs duties, importers are required to pay statutory user fees established by Congress to offset the administrative and infrastructure costs of commercial border operations. Two primary user fees appear on nearly every formal customs entry summary (CBP Form 7501):
Merchandise Processing Fee (MPF): Enacted under Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) (codified at 19 U.S.C. § 58c) and implemented at 19 CFR 24.23 to reimburse the U.S. Government for customs commercial processing and automated clearance systems.
Harbor Maintenance Fee (HMF): Enacted under the Water Resources Development Act of 1986 (codified at 26 U.S.C. §§ 4461–4462) and implemented at 19 CFR 24.24 to finance the dredging and maintenance of commercial channels and ports by the U.S. Army Corps of Engineers.
Customs brokers must navigate the distinct valuation bases, statutory caps, transport mode requirements, and exemption rules that separate these two exactions.
Merchandise Processing Fee (MPF) Mechanics (19 CFR 24.23)
Under 19 CFR 24.23, MPF is assessed on commercial merchandise entering the customs territory of the United States. The fee structure depends directly on whether the shipment is entered under formal or informal entry procedures.
Entry Category FY 2026 Fee
Formal consumption entry (value over $2,500) 0.3464% of entered customs value (19 U.S.C. § 1401a), bounded by the caps below; CBP user fee code 499
- Minimum cap $33.58 (applies to entered values of about $9,694 or less)
- Maximum cap $651.50 (applies to entered values of about $188,077 or more)
- Informal entry — automated entry or release $2.69 flat
- Informal entry — manual, NOT prepared by CBP personnel $8.06 flat
- Informal entry — manual, PREPARED by CBP personnel $12.09 flat
- Dutiable mail fee (separate exaction under 19 U.S.C. § 58c(a)(6)) $6.72 flat
All of these amounts took effect October 1, 2025 under CBP Dec. 25-10 and are adjusted every fiscal year for inflation under the FAST Act. The 0.3464% rate itself is unchanged.
Formal Entry MPF Calculation and the Capping Mechanism
For formal commercial consumption entries (typically merchandise valued over $2,500), MPF is assessed at the statutory ad valorem rate of 0.3464% (0.003464) of the entered customs value. Under Section 32201 of the Fixing America's Surface Transportation (FAST) Act of 2015 (Public Law 114-94), Congress mandated that COBRA user fees be adjusted annually to reflect changes in the Consumer Price Index (CPI-U).
For standard CBLE exam testing, candidates must understand how the Minimum Cap and Maximum Cap partition all formal entries into three distinct mathematical zones:
The Minimum Cap Zone (Low-Value Formal Entries): When the calculated fee (0.003464 × Value) is less than the minimum cap — statutory base $25.00, adjusted to $33.58 for FY 2026 — the calculated amount is discarded and the importer pays the flat minimum.
Minimum Cap Boundary: $33.58 / 0.003464 ≈ $9,694
Rule: Any formal entry with a customs value of about $9,694 or less pays $33.58 .
The Variable Ad Valorem Zone (Mid-Range Formal Entries): For entries valued between about $9,694 and about $188,077, the fee is computed exactly as MPF = Entered Customs Value × 0.003464.
The Maximum Cap Zone (High-Value Formal Entries): When the calculated fee exceeds the maximum cap — statutory base $485.00, adjusted to $651.50 for FY 2026 — the fee stops accumulating and the importer pays the flat maximum.
Maximum Cap Boundary: $651.50 / 0.003464 ≈ $188,077
Rule: Any formal entry with a customs value of about $188,077 or more pays $651.50 . A shipment valued at $10,000,000 pays the same $651.50 as a shipment valued at $200,000.
HOW TO HANDLE THE CAPS ON EXAM DAY: The caps are inflation-adjusted every fiscal year and are published in a Federal Register notice, not in 19 CFR 24.23 — for FY 2026 they rose to $33.58 and $651.50 effective October 1, 2025 under CBP Dec. 25-10, reflecting a 34.331% cumulative FAST Act adjustment to the statutory base amounts. Because the caps are not in the designated regulations, CBLE questions almost always state the applicable minimum and maximum in the question stem . Use the figures given in the question; use the current published figures for real-world work.
Statutory MPF Exemptions and Special Programs (19 CFR 24.23(c))
Certain categories of merchandise are statutorily exempt from MPF or receive special valuation deductions under 19 CFR 24.23(c):
Preferential Free Trade Agreements: Originating merchandise entitled to preferential tariff treatment under designated FTAs is completely exempt from MPF. Eligible agreements include:
- USMCA (United States-Mexico-Canada Agreement - SPI "S" / General Note 11)
- CAFTA-DR (Dominican Republic-Central America FTA - SPI "P" / General Note 29)
- Chile FTA (SPI "CL" / General Note 26)
- Singapore FTA (SPI "SG" / General Note 25)
- Colombia TPA (SPI "CO" / General Note 34)
- Peru TPA (SPI "PE" / General Note 32)
- Panama TPA (SPI "PA" / General Note 35)
- Israel FTA (SPI "IL" / General Note 8)
EXAM CAUTION: The Generalized System of Preferences (GSP) has never exempted merchandise from MPF. Goods entered under GSP pay the full 0.3464% MPF, subject to the minimum and maximum caps. Note also that GSP authorization lapsed on December 31, 2020 and has not been reauthorized , so GSP-eligible goods currently enter at Column 1 General rates and pay MPF in the ordinary way.
HTSUS Chapter 98 Special Provisions:
Subheading 9801.00.10 (American Goods Returned): Completely exempt from MPF under 19 CFR 24.23(c)(1)(iv).
Subheading 9802.00.80 (Assembled Articles with U.S. Components): Under 19 CFR 24.23(b)(1)(i)(B) , MPF is assessed solely on the foreign value added (entered customs value minus the cost or value of U.S. fabricated components). For example, if goods valued at $100,000 contain $40,000 in U.S. components, MPF is assessed on $60,000 ($60,000 × 0.003464 = $207.84, which falls between the caps).
Foreign Trade Zones (FTZ Weekly Entries): Under 19 U.S.C. § 58c(a)(9)(C) and 19 CFR 146.63(c), an FTZ operator approved for weekly entry procedures files a single consolidated formal entry summary per week, paying only one maximum MPF ($651.50 for FY 2026) for all goods transferred into the customs territory that week.
Harbor Maintenance Fee (HMF) Mechanics (19 CFR 24.24)
The Harbor Maintenance Fee (HMF) is assessed on commercial cargo loaded onto or unloaded from a commercial vessel at designated U.S. deepwater ports. Implemented at 19 CFR 24.24 and codified at 26 U.S.C. §§ 4461–4462 , HMF differs sharply from MPF in both mathematical structure and administrative scope.
The Core Computation Formula
HMF is assessed at a flat ad valorem rate of 0.125% (one-eighth of one percent, or 0.00125) based on the commercial cargo value (CBP User Fee Code 501):
- Harbor Maintenance Fee (HMF) Formula: Commercial Cargo Value (USD) × 0.00125 = Harbor Maintenance Fee
- Critical Characteristics and Exam Distinctions
NO MINIMUM AND NO MAXIMUM DOLLAR CAP: Unlike MPF, HMF has no statutory floor and no statutory ceiling. The 0.125% calculation applies linearly across all cargo values. A $5,000 vessel entry pays $6.25 in HMF; a $20,000,000 entry pays $25,000.00 in HMF.
Mode of Transportation Limitation: HMF applies exclusively to commercial vessel shipments loaded or unloaded at ports declared in 19 CFR 24.24 (ports with federally maintained channels). HMF is never assessed on:
- Commercial air cargo (airports are not ocean ports);
- Truck border crossings (e.g., Laredo, Detroit);
- Rail cross-border shipments; or
Ports not listed in 19 CFR 24.24 (privately dredged or shallow waterways).
THE FREE TRADE AGREEMENT TRAP: Free Trade Agreements provide ZERO exemption from HMF . Even if merchandise qualifies for duty-free and MPF-free treatment under USMCA, CAFTA-DR, or the Chile FTA, if that cargo arrives in the United States aboard a commercial vessel discharging at a declared port (e.g., Houston, New Orleans, Newark, or Los Angeles), the importer must pay the full 0.125% HMF .
Unconstitutionality of HMF on Exports: In the landmark Supreme Court decision United States v. United States Shoe Corp. , 523 U.S. 360 (1998), the Court held that collecting HMF on commercial exports violates the Export Clause of the United States Constitution (Article I, Section 9, Clause 5), which prohibits taxes or duties on exports from any state. Consequently, HMF is legally collected only on commercial imports , admissions into Foreign Trade Zones, domestic vessel movements between certain ports, and cruise passenger vessels.
Side-by-Side Comprehensive Matrix: MPF vs. HMF
- Assessment Parameter Merchandise Processing Fee (MPF) Harbor Maintenance Fee (HMF)
- Governing Statute 19 U.S.C. § 58c(a)(9) 26 U.S.C. §§ 4461–4462
- Governing Regulation 19 CFR 24.23 19 CFR 24.24
- CBP Fee Code Fee Code 499 Fee Code 501
- Standard Ad Valorem Rate 0.3464% (0.003464) 0.125% (0.00125 / 1/8 of 1%)
- Statutory Caps FY 2026: Minimum $33.58; Maximum $651.50 (adjusted annually) NO MINIMUM / NO MAXIMUM CAP
- Appraisement Basis Entered Customs Value (19 U.S.C. § 1401a) Commercial Cargo Value (Invoice/Laden)
- Modes of Transport Covered All modes: Vessel, Air, Truck, Rail Commercial Ocean Vessel ONLY
- Modes of Transport Exempt None (rate applies across all formal entries) Air cargo, Truck, Rail, Pipeline
- Free Trade Agreement Exemption YES (USMCA, CAFTA-DR, Chile, SG, CO, PE) NO EXEMPTION (All vessel imports pay)
- GSP Exemption NO (GSP goods pay full MPF) NO (GSP vessel goods pay full HMF)
- HTSUS 9801 (American Goods Ret.) Exempt (19 CFR 24.23(c)(1)(iv)) Subject to HMF if vessel cargo
- HTSUS 9802.00.80 Foreign Assembly Assessed solely on foreign value added Assessed on total commercial value
- Export Assessment Not assessed on exports UNCONSTITUTIONAL ( U.S. Shoe Corp. )