merchandize processing fee

Reduce Merchandise Processing Fees (MPF)

Published on September 24, 2019

Tri-Link has helped clients reduce FTZ Merchandise Processing Fees. A Merchandise Processing Fee (MPF) is a fee assessed by U.S. Customs for most imports into the U.S., not including duty, freight, and insurance charges. The minimum amount of the fee shall not be less than $26.22 and caps at $508.70. Tri-Link can help mitigate the MPFs through the following strategies and services.

Maximizing the Cap

  • Identifying and capitalizing on the cap of the MPF that has a rate of 0.3464% of the value of merchandise being imported. The maximum MPF applies to Entries (shipments) with a value exceeding $230,952, which most companies meet.

This allows a company that imports and distributes in the commerce of the U.S. to do it at a reduced cost while still enjoying a seamless process in their supply chain.

Just in Time

  • Implementing the “Just in Time Concept” to realize a significant savings.

This production strategy allows businesses to reduce inventory costs.

While companies can see significant financial savings, they also enjoy no operational delays to ensure the “Just in Time” concept. Our client Fremont Electronics has great success with this strategy.

Weekly Entry

  • Using the Weekly Entry benefit allows for your company to file one entry per week with unlimited outbound withdrawals. 

Only one entry is filed per week providing a pre-clearance and reconciled fee at the end of the week. This benefit capitalizes on the MPF or Merchandise Processing Fee being minimized significantly by implementing its cap. Customs Brokerage fees are also reduced due to the process as well. Goods are not subject to exams or other CBP delays or obstacles when approved under this concept.

To discuss the possibilities cost savings, and other benefits available contact us.