{"id":8827,"date":"2024-12-20T20:07:43","date_gmt":"2024-12-20T10:07:43","guid":{"rendered":"https:\/\/incodocs.com\/blog\/?p=8827"},"modified":"2024-12-20T20:07:45","modified_gmt":"2024-12-20T10:07:45","slug":"harbor-maintenance-fee","status":"publish","type":"post","link":"https:\/\/incodocs.com\/blog\/harbor-maintenance-fee\/","title":{"rendered":"What is Harbor Maintenance Fee (HMF)"},"content":{"rendered":"\n<p>The Harbor Maintenance Fee (HMF) is a fee charged on cargo shipped through <a href=\"https:\/\/incodocs.com\/ports\/us\">US ports<\/a>. It helps fund the maintenance and improvement of these ports, ensuring they stay operational for trade. This fee is applied to commercial cargo shipped that go via ocean freight.<\/p>\n\n\n\n<p>Introduced in 1986 under the Water Resources Development Act, the HMF was created to maintain infrastructure and share the cost of harbor construction, inland waterway transport, and flood-control projects.<\/p>\n\n\n\n<p>It funds dredging, repairs, and upgrades to keep ports and harbors functional for large cargo volumes. The fee is imposed by US Customs and Border Protection (CBP) and deposited into the Harbor Maintenance Trust Fund.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-is-hmf-calculated\"><strong>How is HMF Calculated?<\/strong><\/h2>\n\n\n\n<p>The Harbor Maintenance Fee (HMF) is calculated using the <a href=\"https:\/\/incodocs.com\/blog\/cif-incoterm\/\">CIF<\/a> value of the cargo. This value includes the cost of goods, insurance, and shipping. If your <a href=\"https:\/\/incodocs.com\/blog\/difference-proforma-invoice-commercial-invoice\/\">invoice<\/a> lists these amounts separately, you can calculate the CIF value by adding them together. Once you have the CIF value, multiply it by 0.125% to determine the HMF.<\/p>\n\n\n\n<p>CIF stands for Cost, Insurance, and Freight. It is the total value of the commercial cargo, including the cost of shipping and insurance. This&nbsp;value is declared when completing import documents.<\/p>\n\n\n\n<p>For example, if a shipment has a CIF value of $50,000, the HMF would be $50,000 multiplied by 0.00125. This gives a fee of $62.50.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-pays-the-harbor-maintenance-fee\"><strong>Who Pays the Harbor Maintenance Fee?<\/strong><\/h2>\n\n\n\n<p>The responsibility for paying the Harbor Maintenance Fee (HMF) falls on the &#8220;importer of record.&#8221; This individual or business is listed on customs documents and must ensure all required fees are covered during the shipping process.<\/p>\n\n\n\n<p>Many importers rely on <a href=\"https:\/\/incodocs.com\/blog\/customs-broker\/\">customs brokers<\/a> to manage payments and complete the necessary paperwork. These brokers calculate the fees and ensure compliance with customs requirements. However, the ultimate responsibility for correct payment stays with the importer.<\/p>\n\n\n\n<p><a href=\"https:\/\/incodocs.com\/blog\/guide-choosing-the-right-freight-forwarder\/\">Freight forwarders<\/a> may help coordinate the process, especially when working with brokers. Even so, the <a href=\"https:\/\/incodocs.com\/blog\/notify-party-bill-of-lading\/\">consignee<\/a> must confirm that all fees, including the HMF, are properly handled. This ensures smooth delivery without complications or additional charges.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-exemptions-to-harbor-maintenance-fee\"><strong>Exemptions to Harbor Maintenance Fee<\/strong><\/h2>\n\n\n\n<p>Certain <a href=\"https:\/\/incodocs.com\/ports\">ports<\/a> and shipments also qualify for exemptions. Cargo moving through small ports or non-HMF ports is excluded. These locations typically handle lower volumes or do not fall under the fee\u2019s requirements. Government and military shipments are also exempt to avoid additional costs for public service operations.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-difference-between-hmf-and-merchandise-processing-fee-mpf\">Difference between HMF and Merchandise Processing Fee (MPF)<\/h2>\n\n\n\n<p>The Merchandise Processing Fee (MPF) is charged to cover customs processing costs for imported merchandise. It is calculated at 0.3464% of the merchandise value. Unlike HMF, MPF includes a minimum fee of $29.66 and a maximum cap of $575, making it different in how costs are applied.<\/p>\n\n\n\n<p>Applicability sets these fees apart. MPF applies only to imported goods, while HMF is limited to imports, domestic shipments, and goods entering Foreign Trade Zones. MPF is collected during the entry summary filing, while HMF is assessed on port cargo entry.<\/p>\n\n\n\n<p><strong>Table: Summary of Key Differences Between HMF and MPF<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Aspect<\/strong><\/th><th><strong>HMF<\/strong><\/th><th><strong>MPF<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Purpose<\/strong><\/td><td>Port maintenance<\/td><td>Customs processing costs<\/td><\/tr><tr><td><strong>Applicability<\/strong><\/td><td>Imports, exports, domestic shipments<\/td><td>Imported merchandise only<\/td><\/tr><tr><td><strong>Rate<\/strong><\/td><td>0.125% of cargo value<\/td><td>0.3464% (min: $29.66, max: $575)<\/td><\/tr><tr><td><strong>Exemptions<\/strong><\/td><td>Exports, small ports, government<\/td><td>Free Trade Agreements (varies)<\/td><\/tr><tr><td><strong>Collection Method<\/strong><\/td><td>Assessed on port cargo entry<\/td><td>Assessed on entry summary filing<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The Harbor Maintenance Fee (HMF) is a fee charged on cargo shipped through US ports. It helps fund the maintenance and improvement of these ports, ensuring they stay operational for trade. This fee is applied to commercial cargo shipped that go via ocean freight. Introduced in 1986 under the Water Resources Development Act, the HMF [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3108],"tags":[3114,3113],"class_list":["post-8827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shipping-logistics","tag-for-exporters","tag-for-importers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.0 (Yoast SEO v23.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Harbor Maintenance Fee (HMF) Explained<\/title>\n<meta name=\"description\" content=\"The Harbor Maintenance Fee (HMF) is a fee paid by shippers and carriers. 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