In August, U.S. Customs and Border Protection (CBP) announced that the Consolidated Omnibus Budget Reconciliation Act (COBRA) will increase user fees effective October 1, 2018 by 4.886 percent to adjust for inflation for Fiscal Year 2019.
One fee affected by this increase is the “Minimum” and “Maximum” Processing Fees. Specifically, the “Minimum” and “Maximum” Merchandise Processing Fees (MPF) have increased. See below table of the current fees and the adjusted fees:
Minimum Merchandise Processing Fee
Current rate – $25.67
New MPF Minimum – $26.22
Maximum Merchandise Processing Fee
Current rate – $497.99
New MPF Maximum – $508.70
This fee relates back to Fixing America’s Surface Transportation Act (FAST). FAST was signed into law on December 4, 2015. Section 13031 of this act amended COBRA and requires certain COBRA fees and corresponding limitations to be adjusted by the Secretary of the Treasury to reflect increases in inflation.
For the full official agency notice, click here.
By Yvonne Scott-Younis