USMCA Does Not Allow for MPF Refunds

Posted on July 14, 2020

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


References:

https://www.cbp.gov/sites/default/files/assets/documents/2020-Jun/USMCA%20Implementing%20Instructions%20-%202020%20Jun%2030%20%28Finalv1%29.pdf


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