CBP Reports MPF Billing Errors, Will Reliquidate Mistaken Billings

CBP mistakenly issued billings for additional merchandise processing fees (MPF) for some entry summaries with entry dates prior to Oct. 1, CBP said in a CSMS message July 17. Entry summaries with an entry date on or after Oct. 1, 2011, are subject to the MPF rate of 0.3464 percent.

CBP will reliquidate those entry summaries billed in error to reflect the original MPF rate, it said. Affected entry summaries for which the importer has already paid the bill will receive a refund, said CBP. The reliquidation will cancel bills on those entry summaries for which the importer has not paid the bill.

CBP recommended that importers monitor their entry summary liquidations and bills closely. Erroneously issued bills should not be paid. CBP will complete the reliquidations by Oct. 6. CBP said the incorrectly assessed MPF is also a protestable issue.

Contact: Terry Monroy, International Trade Specialist, Office of International Trade at terry.monroy@dhs.gov.

The new fee was established through the Trade Adjustment Assistance Extension Act of 2011 (TAA), retroactively effective on Oct. 1, 2011. CBP said while ACS began accepting the new MPF rate on Nov. 5, 2011, CBP could not begin the retroactive billing process for merchandise entered between Oct. 1, 2011 and Nov. 4, 2011 until the refund processing was completed for the Generalized System of Preferences, Andean Trade Preference Act, and the Andean Trade Promotion and Drug Eradication Act retroactive renewals.

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

(See ITT's Online Archives 12061821 for summary of CBP's announcement that it would begin retroactive billing for merchandise entered between October 1 and November 4, 2011.)