Merchandise Processing Fee Error

It is important to maintain a vigilant approach to supply chain compliance because as we have seen in the errors of Merchandise Processing Fee increases, mistakes can manifest themselves at any place, and at any time.

During the week of June 11^th, U.S. Customs & Border Protection (CBP) began their process of re-liquidating entries between October 1^st and November 4^th, in order to retroactively charge for the increased Merchandise Processing Fee (MPF).

There has been a significant mix-up during the re-liquidation process, and some entries were billed for the increased MPF in error. For entries dated prior to October 1^st, 2011, the increased MPF amount was charged when it should have remained the same. As a result, a large number of importers have subsequently received supplemental duty bills in error. To remedy the situation, CBP will be re-liquidating the entries in question to reflect the original MPF.

Importers who have already sent payment for this accidental supplemental duty bill will receive an automatic refund from CBP. Importers who have paid, but haven’t received a refund will have an opportunity to protest the supplemental duty bill. Importers who have received this bill, but haven’t paid it yet should probably check to be certain the bill is actually erroneous to avoid further complications. Regardless of an importer’s status, in this case, keeping a close watch on the situation is advised.

Customs is not leaving the public in the dark about this situation. Anybody with questions about whether or not the supplemental duty bill they received is in error can contact an International Trade Specialist at US Customs and Border Protection before paying the bill. CBP has provided detailed information regarding this situation on its website.

Always keep a watchful eye on your supply chain, and hiccups like these are less likely to grow into larger, more complicated issues.