When importing or exporting goods through U.S. ports, businesses may encounter a charge known as the Harbor Maintenance Fee (HMF). This fee plays a crucial role in maintaining the infrastructure of ports and harbors across the United States. Understanding what HMF is, how it’s calculated, and who pays it can help businesses better estimate their total landed costs and ensure compliance.
1.What Is the Harbor Maintenance Fee?
The Harbor Maintenance Fee is a U.S. federal fee imposed on imports, domestic shipments, and certain exports that move through U.S. coastal and inland ports. The purpose of this fee is to fund the maintenance and dredging of harbors and shipping channels, ensuring navigability and efficiency at U.S. ports.
HMF is collected by U.S. Customs and Border Protection (CBP) and managed by the U.S. Army Corps of Engineers under the Harbor Maintenance Trust Fund (HMTF).
2.Who Pays the Harbor Maintenance Fee?
The fee is typically paid by:
- Importers of record for ocean shipments entering the U.S.
- Domestic shippers moving cargo via certain ports.
- Exporters in limited cases (though most U.S. exports are currently exempt).
Notably, HMF does not apply to air cargo, overland shipments, or exports shipped directly via air.
3.How Is the Harbor Maintenance Fee Calculated?
The HMF is:
- 0.125% (1.25 per $1,000) of the value of the commercial cargo loaded or unloaded at covered ports
- Assessed only on the value of the goods, not on freight, insurance, or other charges.
4.When Is the HMF Paid?
- For imports, the HMF is paid at the time of entry summary filing with CBP (typically via CBP Form 7501)
- For domestic shipments, quarterly payments may be required.
- For bonded warehouse entries or Foreign Trade Zones (FTZ), HMF is deferred until goods are withdrawn for consumption.
5.What Ports Are Subject to the Fee?
The HMF applies to shipments through:
- All commercial ports in the U.S. (coastal and inland) that benefit from federal maintenance.
- This includes major ports like Los Angeles, Long Beach, New York/New Jersey, Savannah, Seattle, and Houston.
6.Why Is the HMF Important?
It helps maintain and improve U.S. ports, which are vital for international trade.
Knowing when and how much HMF applies allows importers to calculate total shipping costs more accurately
Failing to pay HMF can result in penalties or shipment delays.
7.HMF vs. Merchandise Processing Fee (MPF)
| Feature | Harbor Maintenance Fee (HMF) | Merchandise Processing Fee (MPF) |
|---|---|---|
| Purpose | Port maintenance and dredging | Processing of customs entries |
| Applies To | Ocean imports at U.S. ports | Most imports into the U.S. |
| Rate | 0.125% of cargo value | 0.3464% of value (min/max limits apply) |
| Administered By | CBP and Army Corps of Engineers | U.S. Customs and Border Protection |
Final Thoughts
While the Harbor Maintenance Fee is just a small fraction of total shipping costs, it plays a significant role in sustaining U.S. port infrastructure. Understanding how and when this fee applies helps importers and exporters remain compliant and budget accurately. If you’re shipping through U.S. ports, be sure to include HMF in your overall cost calculations.
For detailed guidance on customs fees and logistics support, working with a professional freight forwarder can make the process smoother and more cost-effective.
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FAQ:
Q1: What is the Harbor Maintenance Fee used for?
It funds the dredging and upkeep of U.S. ports, ensuring safe and efficient vessel passage.
Q2:Is the HMF refundable?
Generally, no. It is a statutory fee, not refundable even if the cargo is returned or re-exported.
Q3:Do air freight shipments pay HMF?
No. HMF only applies to ocean cargo moved through covered U.S. ports.
Q4:Is HMF applicable to shipments through Foreign Trade Zones (FTZ)?
Yes, but the payment is deferred until goods leave the FTZ for domestic consumption.