| Title: | FACT SHEET 19 |
|---|---|
| Date: | 1994-01-14 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : LISA CROSBY
SUBJECT : NAF-FACT SHEET 19
DATE : 01/13/94
4012071
JANUARY 12, 1994
CATEGORY: NAF CO:TO:T:T LAC
TO : REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT
AND PORT DIRECTORS
FROM : ACTING DIRECTOR, OFFICE OF TRADE OPERATIONS
SUBJECT: FACT SHEET 19: THE MERCHANDISE PROCESSING FEE
BACKGROUND:
THE CONSOLIDATED OMNIBUS RECONCILIATION ACT (COBRA) OF 1985
AUTHORIZED THE CUSTOMS SERVICE TO COLLECT USER FEES FOR CERTAIN
SERVICES. INCLUDED IN THOSE FEES WAS THE MERCHANDISE PROCESSING
FEE (MPF). THE FEE IS FOR THE PROCESSING OF COMMERCIAL AND NON-
COMMERCIAL MERCHANDISE ENTERED, RELEASED, OR WITHDRAWN FROM A
WAREHOUSE, FOR CONSUMPTION IN THE UNITED STATES. PRIOR TO
OCTOBER 1, 1992, THE AD VALOREM RATE WAS .17 PERCENT. EFFECTIVE
OCTOBER 1, 1992, THE MPF WAS RAISED TO .19 PERCENT, AD VALOREM.
THERE IS A MINIMUM OF $21 AND A MAXIMUM OF $400 PER ENTRY. THERE
ARE ALSO FEE SCHEDULES FOR INFORMAL ENTRIES AND MANUALLY PREPARED
ENTRIES.
AS A RESULT OF THE NORTH AMERICAN FREE TRADE AGREEMENT
(NAFTA), THERE HAVE BEEN CERTAIN CHANGES IN THE MPF, AS INDICATED
BELOW.
ACTION:
THE FOLLOWING CHANGES ARE EFFECTIVE AS TO MERCHANDISE
ENTERED ON OR AFTER JANUARY 1, 1994:
1. ORIGINATING GOODS IMPORTED FROM CANADA THAT QUALIFY UNDER
NAFTA TO BE MARKED AS GOODS OF CANADA ARE NOT SUBJECT TO THE
MPF. THIS APPLIES TO ALL MPF FEES: FORMAL, INFORMAL,
MANUALLY PREPARED OR AUTOMATED.
2. THE FORMULA PREVIOUSLY USED TO PRORATE MIXED CANADIAN AND
NON-CANADIAN GOODS IS DISCONTINUED. ORIGINATING CANADIAN
GOODS ARE NOT SUBJECT TO ANY MPF; ALL OTHER GOODS ARE
SUBJECT TO THE FULL MPF (UNLESS ANOTHER EXEMPTION APPLIES).
3. THERE IS NO IMMEDIATE CHANGE TO THE MPF ASSESSED ON
ORIGINATING MEXICAN GOODS. HOWEVER, EFFECTIVE JUNE 30,
1999, THE MPF WILL BE ELIMINATED FOR ORIGINATING MEXICAN
GOODS WHICH QUALIFY TO BE MARKED AS GOODS OF MEXICO UNDER
NAFTA.
-2-
4. GOODS CLASSIFIABLE UNDER CHAPTER 98 OF THE HARMONIZED TARIFF
(HTS) ARE EXEMPT FROM THE MPF, EXCEPT FOR GOODS ENTERED
UNDER 9802.00.60 AND 9802.00.80. IN THESE CASES, THE MPF IS
ASSESSED ONLY ON THE FOREIGN, DUTIABLE VALUE OF THE
MERCHANDISE, EVEN IF THE DUTY RATE IS "FREE." MERCHANDISE
CLASSIFIABLE UNDER 9802.00.90 IS NOT SUBJECT TO MPF.
QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO THE
NAFTA HELP DESK AT (202)927-0066.
JANET L. LABUDA