1. MPF
2. Entry level fees
3. How are fees calculated
4. Valid fee codes
5. Updating fees

Merchandise Processing Fees

The merchandise processing fee does not apply to any of the following products:

• Products provided for in HTS chapter 98 except goods classified in headings 9802.00.60 and 9802.00.80.

  Note: For goods classified under HTS numbers 9802.0060 and 9802.0080, the MPF is assessed only on the value of the foreign processing or on the value of the merchandise less the cost of the U.S. component parts.

• Products of an insular possession of the United States.

• Products of countries designated as Least Developed Beneficiary Developing Countries (LDDC) as indicated in HTS General Note 4(b).

• Products of countries designated as beneficiary countries for purposes of the Caribbean Basin Economic Recovery Act (HTS General Note 7(a)).

• For agricultural products processed in a Foreign Trade Zone, the MPF is assessed on the value of the materials used to make the container if the materials are subject to entry and the container is used for packing such merchandise.

• For products of Canada entered under the North American Free Trade Agreement (NAFTA).

Source: CATAIR ENS-57

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Entry level user fees

There are three entry level fees:

• Code 311 - Informal Fee
• Code 496 - Dutiable Mail Fee
• Code 500 - Manual Surcharge

The entry level fees are accessed from the 7501 EDIT SCREEN by putting the cursor in a field above the invoice line table (such as the payment type field) and press F8. You will be asked if you wish to edit Entry Level Fees. Responding yes will take you to the duty computation screen and show any entry level fees.

Source: CATAIR ENS-35

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How are the user fees calculated?

• De Minimis Rule
  If the total amount of the Harbor Maintenance Fee (HMF) does not exceed $3.00 and no other commodity fee, IR Tax, or duty apply to the entry, the total reported is $0.00.

• Totaling Fees by Code
  If the total Merchandise Processing Fee (MPF) from line items is less than $25.00 then the $25.00 minimum applies. If the actual total from the line items is greater than $485.00 then the $485.00 maximum applies. If the actual total from the line items is $25.00 through $485.00, the actual total applies.

  Totals for other fees are reported as applicable.

• NAFTA Goods from Mexico
  NAFTA goods originating in Mexico have the MPF calculated using 0.19%. The minimum and maximum MPF is $21.00 and $400.00 respectively.
  If one or more lines in an entry require the 0.21% rate, then the minimum and maximum rates are $25.00 and $485.00 respectively.

  Source CATAIR ENS-71

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• Dates for fee calculations
  The default date for duty/fee validation (except MPF and HMF) purposes for non quota entries is determined in the following order:
  1. IT Date
  2. Entry Date
  3. Estimated Entry Date
  4. Cargo Release Date
  5. Payment Due Date
  6. Estimated Date of Arrival
  7. System date (ACS processing date)

  If the estimated date of arrival is less than the system processing date, the estimated date of arrival is ignored and the system date is used for duty/fee validation purposes.

  For duty, tax and fee computation (except HMF) on quota entries and warehouse withdrawals, ACS ignores the IT date and begins the sequence at the entry date continuing through to the system date.

  For MPF (Merchandise Processing Fee) calculations, ACS ignores the IT date and begins the sequence at the entry date continuing through to the system date.

  For HMF (Harbor Maintenance Fee) computations, the rate in effect on the date of importation is used.

Source CATAIR ENS-12

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User Fee Codes

The primary User Fee codes are:

• Code 053 - Beef Fee
• Code 054 - Pork Fee
• Code 055 - Honey Fee
• Code 056 - Cotton Fee
• Code 079 - Sugar Fee
• Code 090 - Potato Fee
• Code 102 - Lime Fee
• Code 103 - Mushroom Fee
• Code 104 - Watermelon Fee
• Code 105 - Sheep Fee
• Code 311 - Informal Fee
• Code 496 - Dutiable Mail Fee
• Code 499 - Merchandise Processing Fee
• Code 501 - Harbor Maintenance Fee

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User fee maintenance

User fees are stored in the ABI Duty & Fee Rates database.

• Select option 53 from the Harmonized Database Menu screen.
• Locate the appropriate fee on the Rate Inquiry screen then press F4.
• Update the fee on the Rate Edit screen.

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