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USMCA Does Not Allow for MPF Refunds
The new USMCA went into effect on July 1, 2020. The new agreement contains one departure from NAFTA that may directly impact importers’ savings. A significant difference between NAFTA and the new USMCA agreement is that, unlike NAFTA, USMCA will not allow for refunds of the Merchandise Processing Fee. While MPF can be excluded at the time of import, under USMCA, MPF cannot be refunded post entry.
MPF is the Merchandise Processing Fee. Formal entries require payment of MPF at a rate of .3464% of the entered value (with a minimum of $26.79 and a maximum of $519.76). In the past, importers could submit a refund of both customs duties and MPF through a post-importation claim. Now, should importers not claim the goods as originating under USMCA at the time of import, they will not be eligible to claim a refund on MPF through the post-importation claim process. Importers may still make a post-importation claim within one year of importation, but they will only receive a refund of duties, not MPF.
This change should push importers to focus on making USMCA claims at the time of entry, as that is the only way to maximize savings. Allyn can work with importers and their suppliers to ensure that USMCA is timely claimed, allowing for the additional savings of MPF.
To learn more, please contact us at sales@allynintl.com.
Contributor: Heather Oskvarek
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About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.