USMCA: MPF Not Refundable
As many of our clients know, on July 1st the US-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA). However, what you may not know is that there has been a major change to the post-importation preference claim rules.
Under NAFTA, if a preferential duty treatment claim was not made at the time of entry and duty was paid, a refund claim could be filed for a full refund of duty and Merchandise Processing Fee (MPF).
Under the USMCA, a refund claim can still be filed after importation. However, U.S. Customs and Border Protection (CBP) will only refund the duty, not the MPF. MPF is assessed at a rate of .3464% with a minimum of $26.79 USD and a maximum of $519.76 USD for formal entries. Therefore, if your USMCA certificate is not provided to your broker prior to shipping or with your shipment documentation, your company will run the risk not receiving a full refund of the monies paid.
A bill was introduced to Congress on June 3rd to change this policy, but it will most likely not be passed until December.