Understanding Harbor Maintenance Fee
Latest update on 19 April, 2024 by Jacob Leung – Marketing Analyst at FreightAmigo
What is Harbor Maintenance Fee
The Harbor Maintenance Fee (HMF) is a charge levied by U.S. Customs and Border Protection (CBP) on imports shipped by ocean freight. Established under the Water Resource Act of 1986, the HMF requires those who benefit from the maintenance of U.S. ports and harbors to share in the associated costs.
The HMF is set at 0.125% of the value of the shipment for imports and domestic shipments where loading/unloading occurs at ports. It does not apply to air cargo. The fees collected contribute to the Harbor Maintenance Trust Fund, which is used for port maintenance and development projects. Customers can contact FreightAmigo if they have any issues with the HMF.
HMF Calculation Method
The Harbor Maintenance Fee (HMF) is calculated based on the value of the imported cargo. Here’s how the HMF is determined:
Calculation Method
The HMF rate is 0.125% (or 0.00125) of the declared value of the imported goods.
The entered value is the customs value declared by the importer of record when filing the entry summary with the customs broker.
The HMF is applied to both dutiable and duty-free goods.
For example, if the entered value of the imported cargo is $10,000, the HMF would be calculated as:
$10,000 x 0.125% = $12.50
Conclusion
The Harbor Maintenance Fee (HMF) plays a vital role in sustaining the operations and development of U.S. ports and harbors and serves as a crucial mechanism for maintaining the nation’s maritime infrastructure, it’s essential to stay updated on the latest regulations and seek guidance when facing challenges. If you encounter any problems related to your shipments or the Harbor Maintenance Fee, feel free to contact FreightAmigo for professional assistance.
FAQs
The Harbor Maintenance Fee (HMF) is a charge implemented by U.S. Customs and Border Protection for goods imported via ocean freight. This fee amounts to 0.125% of the commercial cargo’s value that passes through designated ports.The Harbor Maintenance Fee is computed at a rate of 0.125% based on the declared value of the cargo on the commercial invoice.No, there is no minimum or maximum limit for the Harbor Maintenance Fee. It is uniformly calculated as 0.125% of the cargo’s declared value, regardless of the total amount.The Merchandise Processing Fee (MPF) is levied at 0.3464% of the declared cargo value on the commercial invoice. The MPF has a minimum fee of $27.75 and a maximum of $538.40 per entry. For entries valued less than $2,500, a flat rate of $2.18 is charged instead.
Have a problem with the harbor maintenance fee? Contact FreightAmigo now for more details!
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