Trends in Logistics

The changing of the MPF rate did not change the existing minimums and maximums of $25 and $485.

What does this mean to you and what is the effect on your duty payments to Customs?  
If you are an importer and the entered dutiable value of your goods is between $7500 and $250,000, you will see an increase.  For example, if the value of your goods is $75,000, you will pay $102.30 more or $259.80 total for the MPF.  If your goods are valued at $200,000, you will pay the MPF limit of $485.  While the percentage increase is below 60%, you will still pay $65.00 more than you had to pay before this new law took effect.
While this increase was effective on October 1, 2011, it was not signed into law until October 21, 2011.  CBP was not ready and they continue to work on internal system programming to address accepting the change in the MPF.  CBP is also working on a cost effective plan for collecting those additional monies generated in the time before their systems are ready to accept the new MPF.

There have been statements made that CBP will be issuing bills for the lapsed time period against entries where the MPF duties total a difference of $20 or more per entry.  Those bills will be going directly to the importer to the address on file with CBP’s ABI or ACE system. The bills will not be issued by CBP Headquarters, but by the individual CBP Ports of Entry on an entry by entry basis.

CBP has not issued a statement as to when this additional billing process will begin.
CBP issued a message to the trade today, November 1, 2011 that on November 5, 2011 after 7:30 a.m., their system changes will allow the trade to submit the new MPF rate for summaries that have a duty computation date of 10/1/2011 or later.

If you have any questions at all regarding your entries with a duty computation date of 10/1/2011 or later, please contact your local Mallory Alexander representative.

Monitor further updates via our website www.mallorygroup.com.