Merchandise Processing Fees / Generalized System of Preferences

Increase in Merchandise Processing Fees
A bill is expected to be signed by the President on Friday, 10/21, which will increase the Merchandise Processing Fee paid on Formal Entries from the current 0.21% to 0.3464% of the Entered Value.

Although the cap of $485.00 for formal entries is not increased, the increased MPF rates will result in the cap being reached more often – on formal entries valued at $140,011 or more (rather than $230,952 or more, as is now the case).

Also, due to the higher MPF rate, the minimum MPF will be paid more often – on formal entries valued at $7217 or less (rather than $11,904 or less as is now the case).

This increase represents the first legislative change to the MPF since 1995 and will be used to address the increased costs U.S. Customs and Border Patrol has incurred as a result of increased volume of trade and additional operational initiatives.

U.S. Renews Generalized System of Preferences
President Obama is expected to sign a bill on Friday, October 21, that will retroactively renew the Generalized System of Preferences program.  The GSP provision will take effect 15 days after the date the President affixes his signature – approximately November 5, 2011.  It will be retroactive to January 1, 2011 and carry us through until July 31, 2013.

Goods entered on or after the effective date, which are eligible for duty-free treatment under GSP, will be entered duty free.

Goods which have been entered after GSP expired on 12/31/2010 but before the renewal date will be eligible to be liquidated with a refund of duty.  As long as your entry was filed with a GSP SPI indication, no further action will be necessary.  Your duties will be refunded to you automatically by U.S. Customs at the time of entry liquidation.