Harbor Maintenance Fee

Understanding CBP's Harbor Maintenance Fee (HMF)

The Harbor Maintenance Fee (HMF) is a critical aspect of importation into the United States, overseen by U.S. Customs and Border Protection (CBP). This fee is levied to fund the maintenance of the nation's ports and harbors, ensuring they remain operational and efficient for commercial use.

What is the Harbor Maintenance Fee (HMF)?

The HMF is a fee assessed on cargo imported into the United States through its ports. It was established by the Water Resources Development Act of 1986 and is used to finance the maintenance and improvement of U.S. harbors. The fee helps cover the costs of dredging, construction, and maintenance activities necessary to keep ports functioning effectively.

How is the HMF Calculated?

The HMF is calculated as a percentage of the value of the commercial cargo. The current rate is 0.125% of the value of the cargo. For example, if the cargo being imported is valued at $100,000, the HMF would be $125.

How is the HMF Collected?

The fee is collected by CBP at the time of importation. Importers report and pay the HMF on the same entry summary used for other import duties and fees. The payment is typically included in the total amount due to CBP when the shipment is cleared through customs.

Exemptions and Special Cases

Certain exemptions apply to the HMF, including:

Cargo shipped between Alaska, Hawaii, and the mainland U.S.
Shipments involving U.S. territories and possessions
Small shipments under a specified value threshold

Importance of the HMF

The HMF plays a vital role in maintaining the infrastructure of U.S. ports, which are essential for international trade. By contributing to the upkeep and development of these ports, the fee helps ensure that the U.S. remains a competitive player in global commerce.

Conclusion

Understanding and complying with the Harbor Maintenance Fee is essential for importers and exporters using U.S. ports. Accurate calculation, timely payment, and proper reporting of the HMF help avoid potential issues with CBP and ensure smooth cargo movement through U.S. harbors.