Are Your Goods Exempt From the Merchandise Processing Fee (MPF)?

November 15, 2013
By Michelle Kelley

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Certain goods that enter the U.S. under a free trade agreement or trade preference program may also be exempt from paying the Merchandise Processing Fee (MPF). Check the table to see if your goods qualify.

In order to qualify for the MPF exemption, the good must:

  • meet the appropriate rule of origin
  • meet all other requirements of the duty preference program being claimed

Per U.S. Customs & Border Protection, Tariff Preferential Level (TPL) goods are never exempt.

FTA/Preference Program Countries SPI MPF
AFTA Australia AU Exempt
AGOA See general note 16(a) for country list D Exempt only for products of least-developed beneficiary developing countries (LDBDC) or when entered under HTS 9819
ATPDEA See general note 11(d) for country list J+ Exempt only when HTS 9821 is claimed
BFTA Bahrain BH Exempt
CAFTA-DR El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic, Costa Rica P, P+ Exempt
CBERA See general note 7 (a) for country list E Exempt irrespective of whether CBERA is claimed
CBTPA See general note 17(a) for country list R Exempt irrespective of whether CBTPA is claimed because they are a subset of CBERA
CFTA Chile CL Exempt
CTPA Colombia CO Exempt
Defense Control Management Area Operations (DCMAO)/ Defense Contract Administration Services Region (DCASR) Exempt
GSP See general note 4(a) for GSP countries and 4(b) for least-developed beneficiary developing countries A, A* Although products of a GSP country are not exempt, products of least-developed beneficiary developing countries (a subset) are exempt, irrespective of whether GSP is claimed
ILFTA Israel IL Exempt irrespective of whether ILFTA is claimed
Insular Possessions U.S. Virgin Islands, Guam, American Samoa, Northern Mariana Islands Y Exempt irrespective of whether preference is claimed
NAFTA Canada, Mexico CA MX Exempt. However, E criterion goods (Annex 308.1) are not exempt unless eligible to be marked as products of Canada or Mexico.
OFTA Oman OM Exempt
PATPA Panama PA Exempt
PTPA Peru PE Exempt
QIZ West Bank, Gaza N Not exempt. However, exempt if marked "Israel"
SFTA Singapore SG Integrated Sourcing Initiative (ISI) goods also originate, so also exempt.
UKFTA Korea KR Exempt

U.S. Customs: MPF and Preferential Trade Programs

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