MPF CLAIMED AS UNUSED MERCHANDISE DRAWBACK
U.S. Customs has issued an interim rule so that merchandise processing fees may be claimed in unused merchandise drawback claims.
Merchandise processing fees (MPF) are assessed by Treasury to cover the cost for the government to process imported goods. The fee is equal to 0.21 percent of the value of imported merchandise, and is capped at $485. Drawback is a refund of duties paid on imported materials that are later exported or used in the manufacture of exported articles.
Customs said it’s interim rule responds to a decision by the Court of Appeals for the Federal Circuit involving the case of Texport Oil vs. United States. The court ruled in the case that if MPF is “assessed under Federal law” and “explicitly linked to import activities,” then it should be subject to unused merchandise drawback.
The interim rule took effect Feb. 9, but Customs said it would take comments from the industry through April 10. For more information, contact William G. Rosoff, chief of Duty and Refund Determination Branch in Customs’ Office of Regulations and Rulings, at (202) 927-2265.