MPF and HMF: US Customs Fees Explained (2026 Rate Update)

MPF (Merchandise Processing Fee) is the US customs fee CBP charges on imports, and HMF (Harbor Maintenance Fee) is the additional fee CBP collects on ocean shipments entering US ports. In FY2026 (1 October 2025 through 30 September 2026), the MPF ad valorem rate is 0.3464 percent of entered value with a minimum of $32.71 and a maximum of $634.62 per formal entry; HMF is 0.125 percent of cargo value on ocean shipments with no cap. Both fees appear on the same CBP Form 7501 entry summary the licensed customs broker files after release, and both are legally the responsibility of the importer of record even though the broker collects and remits. This 2026 guide walks the fee math, names who pays, prices the consolidation option that can cut MPF cost per shipment by 60 to 95 percent on high frequency ocean import programmes, and points to the broader customs clearance fee stack for context.

It is written for US importers, freight forwarders, and NVOCC operations teams that see MPF and HMF on every US import invoice and want to know what the fees actually are, when they apply, and how to lower them without breaking any CBP rule.

What Are MPF and HMF?

HMF (Harbor Maintenance Fee) is a separate user fee that funds harbor dredging, jetty maintenance, and other Corps of Engineers work at US ports. It applies only to commercial cargo arriving at a US port by ocean vessel. Air, road, and rail imports do not pay HMF. HMF has been in place since 1986 and is authorised under 26 USC 4461.

Both fees are administered by CBP through the Automated Commercial Environment (ACE) and both show up on the CBP Form 7501 entry summary the licensed customs broker files within 10 working days of release. The broker calculates the fees on the entered value the importer declared, remits them to CBP through ACH or the Periodic Monthly Statement, and passes the charge back to the importer through the customer invoice.

MPF and HMF are not duty. Duty is the tariff CBP charges under the Harmonized Tariff Schedule of the United States (HTSUS) and depends on the classification of the goods (chapter, heading, subheading) and the country of origin. MPF and HMF are user fees that fund CBP and port infrastructure. The two show up on the same entry summary but do different work and follow different math.

2026 MPF and HMF Fee Table

The FY2026 rates below are effective 1 October 2025 through 30 September 2026 per the CBP Federal Register notice published in August 2025. CBP publishes a new adjustment notice each August that takes effect the following 1 October, so check the current notice before quoting a fee to a customer.

FY2027 rates: CBP is expected to publish the FY2027 MPF adjustment in early August 2026, effective 1 October 2026. The FY2027 ad valorem rate will almost certainly remain 0.3464 percent (that rate has held since 2016); the minimum and maximum caps typically move by 1 to 3 percent per year in line with the Consumer Price Index.

The maximum cap ($634.62 per formal entry) is reached when the entered value hits approximately $183,205 ($634.62 divided by 0.3464 percent equals $183,205 entered value). Above that value, MPF is a flat $634.62 regardless of how much higher the entered value climbs. That cap is the mathematical basis for the weekly entry consolidation option later in this article.

How MPF Is Calculated

MPF math is one line: entered value multiplied by 0.3464 percent, floored at $32.71, capped at $634.62 per formal entry.

Two worked examples for a typical US importer.

Example 1: mid value formal entry. A US importer books an FCL of consumer electronics with an entered value of $85,000. MPF calculation: $85,000 multiplied by 0.003464 equals $294.44. That is above the $32.71 minimum and below the $634.62 maximum, so MPF is $294.44. HMF calculation (ocean shipment): $85,000 multiplied by 0.00125 equals $106.25. Total user fees on the entry: $400.69.

Example 2: high value formal entry (above the cap). A US importer books an FCL of machinery with an entered value of $420,000. MPF calculation: $420,000 multiplied by 0.003464 equals $1,454.88, which exceeds the $634.62 maximum. MPF is capped at $634.62. HMF calculation: $420,000 multiplied by 0.00125 equals $525.00. Total user fees on the entry: $1,159.62.

Example 3: low value informal entry. A US importer books a small LCL shipment with an entered value of $2,100. Because the value is below the $2,500 informal entry threshold, MPF is a flat $2.18 (assuming the broker filed through ABI). HMF still applies to the ocean shipment: $2,100 multiplied by 0.00125 equals $2.63. Total user fees: $4.81. Note that a shipment under $2,500 can still be filed as a formal entry (some importers prefer it for record keeping); in that case the $32.71 minimum applies to MPF.

Entered value for MPF is the invoice value of the merchandise plus applicable assists, packing, and commissions per 19 CFR 24.23(b). It is not the freight or insurance charge. HMF is calculated on cargo value at unlading, which for most invoices tracks entered value closely but can differ slightly on shipments with post loading adjustments. The customs broker's filing software reconciles both bases on the CBP Form 7501.

How HMF Is Calculated

HMF math is even simpler: cargo value multiplied by 0.125 percent, no minimum, no maximum.

Two calibrations to keep in mind.

No cap means HMF scales linearly with value. An importer with a $2,000,000 FCL of high value equipment pays $2,500 in HMF on that single entry; the same importer with a $5,000,000 entry pays $6,250 in HMF. There is no cap that flattens the cost the way MPF flattens above $183,205 entered value. High value ocean importers see HMF as a meaningful line on the customs invoice.

Ocean only means air and land are exempt. HMF does not apply to air freight, cross border trucking from Canada or Mexico, or cross border rail. This is the one lever an importer can pull to avoid HMF altogether: shift a shipment from ocean to air. That trade off is rarely worth it (air freight rates run 4 to 10 times ocean per kilo on the transpacific in 2026) but it is worth remembering when quoting landed cost on urgent high value shipments where the freight rate delta is smaller.

HMF is remitted quarterly by CBP to the Harbor Maintenance Trust Fund, which funds the US Army Corps of Engineers channel maintenance programme. The trust fund has been the subject of periodic congressional debate on whether the funds are used at the ports that generated them (in practice, no; larger contributors like Los Angeles and Long Beach have historically underutilised the trust fund relative to their contribution). That policy debate does not change the fee rate or the collection mechanism for importers.

Who Pays MPF and HMF vs Who Is Charged

The distinction between "pays" and "is charged" matters because the parties differ.

Importer of Record vs Broker vs Forwarder: Who Pays MPF and HMF

• Importer of record (IOR). The party named on the CBP Form 7501 entry summary is legally liable to CBP for MPF, HMF, duty, and any related penalties. This is usually the US buyer, the US subsidiary of a foreign shipper, or a designated US party if the buyer is not a US person. The IOR bears the ultimate financial responsibility even when a broker or forwarder collects the fees.
• Licensed customs broker. The broker files the entry summary through ABI, calculates MPF and HMF on the declared entered value and cargo value, and remits the fees to CBP through ACH direct debit or the importer's Periodic Monthly Statement. The broker charges a filing fee to the IOR (typically $75 to $150 per entry in 2026) but does not bear the fee liability itself.
• Freight forwarder. The forwarder typically manages the shipment end to end (booking, tracking, customs coordination, invoicing). On the customer invoice, the forwarder passes through MPF and HMF as separate line items at cost, adds the broker's filing fee (sometimes marked up 10 to 25 percent as a coordination fee), and issues a single invoice to the shipper. The forwarder does not bear the fee liability but does need to reconcile the CBP entry summary to the customer invoice to avoid double billing or missed passes through.

The practical implication: when an ops team spots a discrepancy between the CBP Form 7501 and the customer invoice, the fix is to reconcile against the entry summary (CBP is the source of truth), not against the shipper's expectation. When the CBP fee changes (as it did on 1 October 2025 for FY2026), the forwarder updates the fee master in the platform once and every subsequent invoice pulls the new rate automatically.

Section 321 De Minimis Exemption

Shipments valued at $800 or less per importer per day are eligible for Section 321 de minimis entry, which exempts the shipment from MPF, HMF, and duty. Section 321 is the mechanism that has powered cross border ecommerce shipments from Asian marketplaces (Shein, Temu, AliExpress) into the US since the de minimis threshold was raised from $200 to $800 in 2016.

CBP has proposed rulemaking to narrow Section 321 eligibility, particularly for goods subject to Section 301 tariffs (China origin) and for high volume ecommerce shipments. The proposed rule (89 FR 76432, September 2024) was still in the comment window as of mid 2026 and no final rule had been published. For now, Section 321 remains available as an MPF and HMF exemption route for eligible sub $800 shipments.

When MPF Applies (Formal vs Informal Entries)

MPF applies to nearly every formal and informal entry. The two rate structures.

Formal Entry (Value $2,500 or More)

Formal entry is the standard US import entry type for shipments valued at $2,500 or more. The importer or broker files a full CBP Form 7501 with entered value, HTS classification, duty calculation, MPF, HMF (if ocean), and any applicable Section 301 or antidumping duty. Bond requirements apply. Release times run from same day to 3 to 5 days depending on port congestion, exam status, and PGA screening for regulated goods (FDA, EPA, USDA, DEA, CPSC).

Formal entry MPF is the 0.3464 percent ad valorem calculation with the $32.71 minimum and $634.62 maximum. That is the fee that consolidation lowers.

Informal Entry (Value Under $2,500)

Informal entry is a simplified entry type for shipments valued under $2,500. CBP charges a flat MPF: $2.62 for manual processing, $2.18 for ABI (automated) processing. There is no ad valorem calculation and no consolidation option, because the flat fee is already effectively a floor cap.

The choice between formal and informal on a sub $2,500 shipment is not always at the importer's discretion. CBP may require formal entry for certain commodities (regulated goods, textiles subject to specific quotas, some agricultural products), and the broker will typically default to the mode that clears the shipment fastest with the lowest fee exposure.

Free Trade Agreement Exemption

MPF is waived on qualifying imports from certain free trade agreement partners, including USMCA (Canada and Mexico), CAFTA-DR, Israel, Jordan, Chile, Singapore, Australia, Bahrain, Morocco, Peru, Oman, Korea, Colombia, and Panama, when the goods meet the FTA's country of origin and preferential treatment rules. HMF is not waived by FTA (it is a domestic fee tied to US port infrastructure, not a tariff), so ocean shipments from FTA countries still pay HMF.

MPF Consolidation via Weekly Entry

Weekly entry consolidation is the CBP process that lets a qualifying importer combine multiple shipments into one entry summary filed once per week, so the $634.62 MPF cap hits once instead of multiple times. It is the single highest return MPF optimisation available to US importers, and it is fully compliant with CBP rules under 19 CFR 141.90 and the Automated Broker Interface periodic filing provisions.

What Weekly Entry Consolidation Actually Is

Under 19 CFR 141.90 and the CBP Periodic Monthly Statement programme, a licensed customs broker filing through ABI can consolidate multiple shipments from the same importer of record, arriving at the same port, and released during the same 7 day period, into a single consolidated entry summary. The entry summary is filed once, MPF is calculated on the total entered value once, and if that total value exceeds the cap threshold (approximately $183,205 entered value), MPF is capped at $634.62 for the entire consolidated entry.

The mechanism has been in place since the mid 1990s but adoption remains uneven. Enterprise importers with high frequency import programmes (weekly or better) and dedicated broker relationships use it as standard practice; mid market importers often do not, either because their broker has not enrolled them in PMS or because their shipment cadence has not crossed the threshold where consolidation pays back.

How Much MPF Consolidation Saves

The savings depend on shipment frequency and entered value per shipment. Two typical scenarios.

Scenario 1: mid market ocean importer, 4 FCL per week. An importer moves 4 FCL per week, each with an entered value of $95,000. Without consolidation, MPF per FCL is $95,000 multiplied by 0.003464 equals $329.08, so 4 FCL per week equals $1,316.32 in MPF weekly. With consolidation, total weekly entered value is $380,000, MPF cap of $634.62 applies once. Weekly saving: $1,316.32 minus $634.62 equals $681.70. Annual saving: approximately $35,448 across 52 weeks. Payback on the broker's PMS enrolment fee: same week.

Scenario 2: enterprise ocean importer, 12 FCL per week. An importer moves 12 FCL per week, each with an entered value of $85,000. Without consolidation, MPF per FCL is $294.44, so 12 FCL per week equals $3,533.28 in MPF weekly. With consolidation, total weekly entered value is $1,020,000, MPF cap of $634.62 applies once. Weekly saving: $3,533.28 minus $634.62 equals $2,898.66. Annual saving: approximately $150,730. Payback on any related integration cost: single digit weeks.

Scenario 3: air importer, weekly consolidation. An importer moves 6 air waybills per week from Frankfurt to Chicago ORD, each with an entered value of $28,000. Without consolidation, MPF per AWB is $28,000 multiplied by 0.003464 equals $96.99, so 6 AWB per week equals $581.94 in MPF weekly. With consolidation, total weekly entered value is $168,000, which is just under the cap threshold ($183,205), so MPF is $168,000 multiplied by 0.003464 equals $581.95. In this scenario consolidation does not save MPF because the aggregate value stays below the cap; the broker still files fewer entries which saves broker filing fees.

The pattern across the three scenarios: consolidation saves MPF meaningfully when weekly aggregate entered value exceeds the $183,205 cap threshold. Below that threshold, consolidation still reduces broker filing fees and simplifies the reconciliation but does not lower MPF itself.

MPF Consolidation on Ocean Imports

Ocean is where MPF consolidation earns the most. High value FCL importers on the transpacific eastbound, Asia to US east coast, and transatlantic westbound routinely aggregate 4 to 20 FCL per week per port pair. The cap saving compounds across the year. The operational prerequisite is that all consolidated shipments share the same IOR, arrive at the same port, and release during the same 7 day PMS window; multi port programmes (LA plus NY plus SEA) run one consolidation per port, not one across all ports.

HMF is not affected by consolidation. HMF stays at 0.125 percent of cargo value on every ocean shipment, whether the entry is consolidated or not. Ocean importers should model MPF savings and HMF cost separately in the landed cost quote.

MPF Consolidation on Air Imports

Air consolidation follows the same PMS and ABI mechanics. The typical break even entered value is higher on air because per shipment values on airfreight tend to be lower (weight sensitive commodities travel by air, and per shipment values on express air imports can be as low as $5,000 to $15,000). Air importers moving 8 to 15 AWB per week from the same origin to the same US airport are the typical beneficiaries.

Air imports do not pay HMF (HMF is ocean only) so the consolidation savings on air are cleaner: pure MPF cap savings with no offsetting HMF cost to model.

Who Qualifies for Weekly Entry Consolidation

1. Importer enrolment in Periodic Monthly Statement. The IOR must be enrolled in CBP's PMS programme, which allows monthly duty and fee remittance rather than per entry ACH. Enrolment is free but requires CBP form 5106 submission and a good credit standing.
2. Broker filing through Automated Broker Interface. The customs broker filing the entry must be an ABI participant, and the broker's software must support consolidated entry filing. Every major customs broker software vendor supports this in 2026.
3. Same IOR, same port, same 7 day window. All consolidated shipments must share the IOR, the port of entry, and the 7 day PMS window. Multi IOR shipments (for example, a distributor importing on behalf of multiple end buyers) cannot be consolidated across IORs.

How Forwarders Set Up MPF Consolidation

Set up takes 3 to 6 weeks and follows a standard sequence: (1) confirm the importer's PMS enrolment (or file CBP form 5106 to enrol); (2) confirm the broker's ABI capability and consolidated entry filing support; (3) map the shipment cadence per port pair to the 7 day PMS window (typical cadence: weekly cutoff Friday, consolidated entry filed Monday for the prior week); (4) reconcile the first two weeks of consolidated filings against the pre consolidation baseline to confirm the MPF saving and the customer invoice pass through; (5) go live and monitor the CBP Form 7501 line 42 monthly against the customer invoice for reconciliation drift.

Common Mistakes That Erase the MPF Savings

• Splitting shipments across brokers. Consolidation only works across shipments filed by the same broker under the same ABI filer code. Importers using two brokers on the same lane (usually as a redundancy hedge) forfeit consolidation on any week where the split crosses brokers.
• Splitting across IORs. Two related but distinct US legal entities (parent and subsidiary, for example) cannot consolidate across IORs even when the goods are physically identical. The consolidation is IOR level, not group level.
• Missing the PMS window. A shipment released on Sunday against a Friday cutoff pushes into the next week's consolidation. Ops teams tracking release date without reference to the PMS window sometimes miss the boundary.
• Manual fee override on the customer invoice. When the platform pulls MPF from a static rate table instead of the CBP Form 7501, the consolidated fee saving does not flow through to the shipper's invoice. Reconciliation to the entry summary is the fix.
• Applying consolidation to non consolidatable shipments. Section 321 de minimis, informal entries, and FTA exempt entries do not qualify. Filing them into a consolidated entry can create reconciliation errors that erase the saving.

For a full read on the customs entry workflow that MPF and HMF sit inside, see the customs clearance in USA guide (the sibling refresh from the September 2026 batch) and the customs brokerage compliance workflows reference on ISF, AMS, ACAS, PGA, and Entry Summary filing.

Where MPF and HMF Sit in the Full Customs Clearance Fee Stack for a US Import

MPF and HMF are two of six fee lines that show up on a typical US import customs clearance invoice. The full stack for a formal ocean entry:

MPF and HMF are the two CBP user fees on the stack. Duty is a separate CBP charge that funds the general fund (not CBP operations). Lines 4, 5, and 6 are broker or forwarder fees, not CBP fees, and vary by service provider.

The full landed cost quote a forwarder issues to a shipper includes all six lines plus the freight rate, terminal handling charge, drayage, and any accessorial charges. For a deep read on how landed cost quotes should carry all six lines (rather than a "freight only" quote that surprises the shipper on invoice), see the Freight Rate RFP Playbook.

How Forwarders Track MPF and HMF on the Shipment Record

The reconciliation task across MPF, HMF, and the broker's filing fee is the operational reason to move US customs entry work onto a cloud based freight management platform rather than run it on spreadsheets and broker portal PDFs. Three specific data points need to flow from the CBP Form 7501 back onto the shipment record for the customer invoice to reconcile:

1. Entered value (for MPF calculation)
2. Cargo value at unlading (for HMF calculation)
3. PMS consolidation flag (for MPF cap application)

When the customs module lifts these three from ABI directly, the customer invoice pulls the CBP fees as filed and the reconciliation is automatic. When they are keyed manually from the broker's PDF, three failure modes appear: MPF gets charged twice on a consolidated entry (once at the individual shipment level, once at the consolidated level); HMF gets charged on air shipments where it does not apply; and Section 321 exemptions get overwritten by a default MPF value.

See the Customs Management Software for Forwarders product overview for the platform capabilities that carry MPF, HMF, and consolidation reconciliation inside the shipment record.

Frequently Asked Questions

What is the customs clearance fee for USA imports in 2026?
The US customs clearance fee stack for a formal ocean entry in 2026 has six lines: MPF (0.3464 percent of entered value, minimum $32.71, maximum $634.62 per entry), HMF (0.125 percent of cargo value, ocean only, no cap), customs duty (variable by HTS classification and origin), customs broker filing fee ($75 to $150 per entry), HTS classification fee ($25 to $75 per line on complex classifications), and ISF filing fee ($30 to $75 on ocean imports). MPF and HMF are the CBP user fees; the broker fees are set by the licensed customs broker filing the entry.

What is the MPF fee in 2026?
The MPF (Merchandise Processing Fee) in FY2026 is 0.3464 percent of entered value with a minimum of $32.71 and a maximum of $634.62 per formal entry. Informal entries under $2,500 pay a flat $2.62 (manual) or $2.18 (automated) instead. The FY2026 rates are effective from 1 October 2025 through 30 September 2026 per the CBP Federal Register notice published in August 2025. FY2027 rates will be published by CBP in early August 2026.

What is the HMF fee in 2026?
The HMF (Harbor Maintenance Fee) is 0.125 percent of cargo value on ocean shipments arriving at a US port. There is no minimum and no cap. HMF applies only to ocean imports; air, road, and rail imports do not pay HMF. The rate is set by statute (26 USC 4461) and has not changed since the fee was established in 1986.

Who pays MPF and HMF, the importer or the broker?
The importer of record (IOR) named on the CBP Form 7501 entry summary is legally liable to CBP for MPF and HMF. The licensed customs broker files the entry, calculates the fees on the declared entered value and cargo value, and remits them to CBP through ACH or Periodic Monthly Statement. The freight forwarder typically passes the fees through on the customer invoice at cost. The broker and forwarder do not bear the fee liability; the IOR does.

Can I reduce my MPF cost?
Yes. The main compliant lever is weekly entry consolidation under CBP's Periodic Monthly Statement programme. Multiple shipments from the same importer, arriving at the same port, and released during the same 7 day PMS window can be consolidated into one entry summary that hits the $634.62 MPF cap once instead of many times. High frequency ocean importers with weekly aggregate entered value above the $183,205 cap threshold typically save $30,000 to $150,000 per year on MPF alone.

Can I reduce my HMF cost?
Not directly. HMF is 0.125 percent of cargo value with no cap and no consolidation option. The only levers are (a) shifting ocean shipments to air (rarely economical because air freight rates run 4 to 10 times ocean per kilo), (b) qualifying for Section 321 de minimis on shipments valued at $800 or less, or (c) confirming that the goods are not subject to HMF because they are transhipment cargo or exempt commodities under 26 USC 4462.

Does MPF apply to imports from Canada or Mexico under USMCA?
No. MPF is waived on qualifying USMCA imports (goods that meet USMCA country of origin and preferential treatment rules). HMF still applies on ocean shipments from Canada or Mexico because HMF is a domestic port infrastructure fee, not a tariff. Ops teams frequently miss the MPF waiver on USMCA entries and inadvertently charge the shipper for a fee CBP never collected; the reconciliation catch is to check CBP Form 7501 line 42 before the customer invoice goes out.

What is the difference between MPF and duty?
MPF is a user fee that funds CBP operations, charged at a flat 0.3464 percent of entered value with a minimum and maximum cap. Duty is the tariff CBP charges under the Harmonized Tariff Schedule of the United States (HTSUS), and it varies widely by HTS classification and country of origin (from 0 percent to 100 percent or more of entered value, especially with Section 301 tariffs on China origin goods). Both appear on the CBP Form 7501 entry summary but serve different purposes and follow different math.

When are MPF and HMF rates updated?
CBP publishes the annual MPF rate adjustment in the Federal Register each August, with the new rates taking effect the following 1 October (the start of the US federal fiscal year). The ad valorem rate (0.3464 percent) has not changed since 2016; the minimum and maximum caps typically adjust by 1 to 3 percent per year in line with the Consumer Price Index. HMF is set by statute at 0.125 percent and has not changed since 1986. The FY2027 MPF adjustment is expected in early August 2026.

Do Section 321 de minimis shipments pay MPF or HMF?
No. Shipments valued at $800 or less per importer per day that qualify for Section 321 de minimis entry are exempt from MPF, HMF, and duty. Section 321 has been the mechanism powering high volume ecommerce imports from Asian marketplaces since the de minimis threshold was raised from $200 to $800 in 2016. CBP has proposed rulemaking to narrow Section 321 eligibility (particularly for Section 301 tariff subject goods); the proposed rule is still pending final action as of mid 2026.

Keep Reading

• How To Do Customs Clearance in the USA for Goods (2026 Guide)
• Customs Brokerage Compliance Workflows: 2026 Buyer Framework (ISF, AMS, PGA, ACAS)
• Freight Rate RFP Playbook: How Enterprise Forwarders Build Ocean Contracts
• ISF 10+2 Filing: Deadlines, Data Elements, and Penalty Exposure
• Customs Management Software for Freight Forwarders