# The Merchandise Processing Fee, Line by Line

Source: https://landedcosthq.com/blog/2026-11-07-merchandise-processing-fee-line-by-line/

Cross-border operations guide · November 7, 2026


**Short answer:** The MPF is 0.3464 percent of entered value, with a floor and a ceiling that move every October. For fiscal 2027 the floor is $34.58 and the ceiling is $670.86 per formal entry, and the rate itself has not moved.

## The rate, the floor, and the ceiling

The merchandise processing fee is the user fee CBP charges to recover the cost of processing merchandise imported into the United States, established under 19 USC 58c. For formal entries it is an ad valorem fee of 0.3464 percent of the entered value, and that rate has held steady for years. What moves is the floor and the ceiling, adjusted for inflation each fiscal year under 19 CFR 24.22. For fiscal 2027, effective October 1, 2026, the minimum is $34.58 and the maximum is $670.86 per formal entry. Fiscal 2026 was $33.58 and $651.50.

Informal entries carry flat amounts instead of a percentage: $2.69 for an automated informal entry, $8.06 for a manual informal entry not prepared by CBP, and $12.09 for a manual informal entry prepared by CBP. The MPF is calculated on the entered value of the merchandise, excluding duty, freight, and insurance, and it applies to nearly every formal entry regardless of mode of transport. CBP publishes the current figures in its user fee schedule and in a Federal Register notice each year, and the fee table page on CBP's own site still shows older figures, so use the notice, not the table.

## The worked example

The math is one line: entered value multiplied by 0.3464 percent, floored at $34.58 and capped at $670.86 per formal entry. A $5,000 entry computes to $17.32, which is below the floor, so you pay $34.58. A $100,000 entry computes to $346.40, which sits between the floor and the ceiling, so you pay $346.40. A $250,000 entry computes to $866, which is above the ceiling, so you pay $670.86.

The break-even points are worth knowing. The floor binds below about $9,980 of entered value, where 0.3464 percent falls under $34.58. The ceiling binds above about $193,700, where the percentage passes $670.86. Between those two values, the fee is the straight percentage. That is why consolidating entries saves money: one entry at $250,000 pays one capped fee of $670.86, while five entries at $50,000 pay five fees of $173.20 each, a total of $866. The fee is per entry, not per shipment, and the entry count is the lever.

## Where it shows up, and what people miss

The MPF appears on the entry summary, CBP Form 7501, in block 39, as a separate line from duty. It is legally the responsibility of the importer of record, even though the broker calculates it and remits it through ACH or Periodic Monthly Statement. The freight forwarder typically passes the charge through on the customer invoice, sometimes with a markup, which is why the fee on the invoice and the fee on the 7501 do not always match.

Two things get missed. First, the MPF is refundable through drawback: up to 99 percent of duties, taxes, and fees comes back on goods that are exported or destroyed without being used, and the MPF is among the fees. Second, the floor and ceiling move every October, so a landed cost model built last year is wrong this year by a few dollars per entry. Small money per entry, real money across a year of entries, and the fix is a calendar reminder every September to check the new notice.

Keep reading: [Insurance in Landed Cost: CIF vs FOB and the Duty You Owe](https://landedcosthq.com/blog/2026-11-07-insurance-landed-cost-cif-fob/), [Brokerage Fees in Landed Cost: What You Are Actually Paying For](https://landedcosthq.com/blog/2026-11-07-brokerage-fees-landed-cost/).

## Frequently asked questions

## What is the MPF rate for fiscal 2027?

The rate is 0.3464 percent of entered value, with a minimum of $34.58 and a maximum of $670.86 per formal entry. Those are the fiscal 2027 figures, effective October 1, 2026. The ad valorem rate has held at 0.3464 percent for years; only the floor and ceiling adjust each October for inflation.

## Does the MPF apply to informal entries?

Yes, at flat rates instead of a percentage: $2.69 for an automated informal entry, $8.06 for a manual informal entry not prepared by CBP, and $12.09 for a manual informal entry prepared by CBP. Informal entries cover shipments valued at $2,500 or less, which is most low-value ecommerce import volume.

## Is the MPF refundable?

The MPF is included in drawback claims. Drawback refunds up to 99 percent of the duties, taxes, and fees paid on imported goods that are later exported or destroyed without being used, and the MPF counts among the fees. An importer who exports regularly should be claiming the MPF back as part of every drawback filing.

## Why did my MPF go up this year?

The floor and ceiling adjust for inflation each October under 19 CFR 24.22, and the rate stays at 0.3464 percent. Fiscal 2026 was $33.58 minimum and $651.50 maximum; fiscal 2027 moved both up, to $34.58 and $670.86. If your landed cost model still uses the fiscal 2026 numbers, every entry this year is understated by a few dollars, which adds up across a year of entries.