U.S. Customs MPF user fees & bond fees

Organising any transport to the US, you'll come across mysterious "MPF user and bond fees", which will apear on the shipping estimate probably without value, with notice "to be determined", next to some complicated looking formula. They are import charges for shipments entering US: quite  a boring subject :) but as they usually constitute a significant part of total shipping costs, I guess they're woth paying a bit attention, especially while reading and comparing estimates.

As the US Customs system is quite different from the European one and user friendly information on that topic not really common, I'll try to explain both terms below.

What is a MPF US Customs USER FEE?

Artworks, per Unesco Florence Agreement of 1950, are duty free, so a user fee can be seen more as a kind of import tax: MPF means Merchandise Processing Fee. It applies always*, when an artwork enters the US, also if it had been exported temporarily, for example as a loan for an exhibiton. It is collected per AWB, so if
possible, try to consolidate your shipments.

Officially**, the only two cases in which this rule is not valid are:
1) the imported work has been created by an American artist;
2) the imported work was exported accompanied by Carnet ATA
(a state waranty for the return of temporarily exported goods).


How to calculate a USER FEE?

The formula is slightly terrifying at a first glance. But at a second not that much anymore: 0.3464 % ($25min - $485max)

This simply means that if your artwork's value on the shipping invoice is ca. $7.070,00 or less - the minimum fee of $25 applies;

If its declared value is ca. $140.000,00 or more - the maximum fee of $485 applies;

For values in between, please use the formula. The declared value of the artwork simply needs to be multiplied by 0.003464.


What are BOND FEES and why aren't they unified?

A customs bond is an amount of money that the importer has to deposit at the US Customs as a guarantee of payment of any increase in duties or penalty on the entry, if for some reason the importer does not pay. It is required for every formal import entry. For companies like shipping agents, who receive and clear numerous imports during a year, it is much more beneficial to obtain a so called continuous bond (flat rate principle), under which any number of customs entries can be made without extra costs. Such a continuous bond, though, means for a shipping agent that between ca. $50.000 - ca. $400.000 of their assets are "frozen" on a custom's bank account. Bond fees are charges for using an agent's continuous bond, which is still more advetageous for clients than obtaining an own, single entry bond.

As you see, bond fees are just price for a service offered, so they can differ from agent to agent a good deal. Here an example:
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I regularely work with one US shipping agent who is generally cheaper but offers bond services at
$5.5/$1000 of value, min $100 - max $500

and another one, who is generally more expensive but charges
$1 per $1000 of value, min $75 - max $550

Assuming the value of an imported artwork is $100.000, the former agent would charge their client with
max fee of $500, and the latter only with $100.
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That is why, while comparing estimates from different US agents, it may pay off for you to calculate the estimated bond fees, as in some cases the difference can be really significant!


*Formal entries are required for imports of commercial goods valued at $2,500 or more.

**Inofficially, there have been precedences of other cases...so  it is always worth asking your US agent, if the user fee is necessary in your case. It is quite rare, I admit, but sometimes possible :)

*** For further information, you may find the official website of US Customs and Border Protection worth visiting