CBP to Give 1 Week Notice of New MPF's Start, Bill back to Oct 1

Higher MPF Rate Enacted for More than 9 Years, from Oct 2011 -- June 2021

The higher .3464% rate is continuously effective for the period of October 1, 2011 to June 30, 2021, which is more than nine years, as the Korea FTA bill was enacted as Public Law 112-41 after the GSP/MPF bill was enacted as P.L. 112-40. (See ITT’s Online Archives, 11102103 and 11101111 for explanatory summaries.)

New MPF Rate Is More than a 60% Increase over Old Rate

The new MPF rate of .3464% for formal entries, which represents more than a 60% increase over the prior MPF rate of .21% for formal entries, was implemented with an October 1 start date by P.L. 112-40, which was signed into law on October 21.

The new laws did not change the minimum MPF of $25 for formal entries, nor the maximum MPF of $485 for formal entries. This means that a greater number shipments will be above the $25 minimum, and a greater number of shipments will reach the $485 cap.

Examples of rate changes under the new MPF for formal entries include (new and old listed):

• $5,000 entry would pay $25 minimum (same $25 minimum)
• $7,500 entry would pay $26 (from $25 minimum)
• $10,000 entry would pay $35 (from $25 minimum)
• $25,000 entry would pay $87 (from $53)
• $50,000 entry would pay $173 (from $105)
• $100,000 entry would pay $346 (from $210)
• $120,000 entry would pay $416 (from $252)
• $150,000 entry would pay $485 cap (from $315)
• $200,000 entry would pay $485 cap (from $420)
• $225,000 entry would pay $485 cap (from $473)
• $250,000 entry would pay $485 cap (same $485 cap)

(See ITT’s Online Archives, 11090916 for BP summary stating that with a .3464% MPF, the MPF cap would be reached on formal entries valued at approximately $140,000 and up, and the MPF minimum would be paid on formal entries valued at approximately $7,200 or less.)

CBP to Give Week’s Notice Before Changing to Higher MPF in ACS and ACE

CBP states that it will notify the trade in a future message when ACS or ACE summaries should be submitted using the new MPF rate. The agency plans to provide the trade with approximately one week of advance notice before the start date of the new MPF rate.

(Note that one trade source thinks the start date could be around November 6-12.)

CBP Ports Expected to Bill Any Retroactive Fees Due of $20 or More

Officials state that CBP expects to generate bills for the period that began on October 1 through the date before the higher rate is implemented, to collect the difference between the old and new rates for that time period. Officials expect that any differences in the MPF rate for a formal entry that is less than $20 will not be billed.

Validation Date May Determine Which Rate (Old or New) Needed at Changeover

Once the ABI implementation date for the new MPF is known, entry filers should consult the CATAIR, Entry Summary, Record 30, Note 4, which indicates the validation dates used by the system to determine the MPF rate.

The CATAIR indicates that the following order is used by the system to determine the MPF rate:

* paragraph regarding the $25 minimum/$485 cap has been corrected.

CSMS # 11-000262 (dated 10/21/11)