COAC, CUSTOMS TO ADDRESS MPF

COAC, CUSTOMS TO ADDRESS MPF    The Treasury Advisory Committee on Commercial Operations of the U.S. Customs Service, better known as COAC, plans to meet with Customs soon to address the future of the merchandise-processing fee in the agency’s new computer system.
   The merchandise-processing fee (MPF) was implemented under the 1986 Omnibus Budget Reconciliation Act. MPF imposes a tax based on the value of imported goods, ranging from $25 to $485 per import entry. The tax generates about $1 billion in revenue for the government each year.
   COAC has analyzed MPF and its future prospects for about four years. Most industry executives believe it’s unrealistic to expect Congress to allow MPF to go away. MPF has been “institutionalized” in the U.S. import system, said Arthur L. Litman, vice president of regulatory affairs for FedEx Trade Networks and COAC member.
   COAC, however, wants to work with Customs in the coming months to devise a practical means to apply MPF under the future Import Activity Summary Statement (IASS) in the Automated Commercial Environment.