Harbor Maintenance Fee (HMF)

Definition

The Harbor Maintenance Fee, or HMF, is a U.S. customs charge equal to 0.125% of the value of commercial cargo that a ship unloads at a U.S. port. Customs and Border Protection (CBP) collects it, mostly from importers, and the money pays for dredging and upkeep of the country’s harbors.

Think of it as a toll for using the harbor. That works out to $1.25 for every $1,000 of cargo, so a $100,000 shipment carries a fee of $125.

You will also see it called the Harbor Maintenance Tax, or HMT. It is the same charge. The tax code says “tax,” while CBP’s rules, customs forms, and brokers say “fee.”

What it contains

HMF has one rate and one way to calculate it. Four details are worth knowing.

1. The rate: HMF is 0.125% of value, with no cap and no set minimum.

2. The value it is based on: The fee is calculated on the entered value, which is the value CBP uses to work out duty. It usually leaves out freight and insurance, so it can be lower than the invoice total.

3. The collection code: The entry summary (CBP Form 7501) is the form that tells CBP what you brought in and what you owe. On that form, HMF is reported under code 501. The merchandise processing fee (MPF), another customs charge, uses code 499.

4. The legal source: The charge comes from the tax code (26 U.S.C. 4461 and 4462), and CBP collects it under 19 CFR 24.24. The money goes into the Harbor Maintenance Trust Fund.

Where it’s used

HMF applies to goods that arrive by ship, so it comes up for importers in retail, automotive, machinery, chemicals, steel, furniture, and electronics. Four groups handle it:

1. Importers of record: The importer of record is the company legally responsible for the shipment, and it owes the fee.

2. Customs brokers: A licensed customs broker calculates the fee, reports it on the entry summary, and pays it to CBP.

3. Freight forwarders: A freight forwarder arranges the shipment and often passes the charge along on its invoice.

4. AP and finance teams: Accounts payable checks the charge against the entry before paying it, then adds it to the landed cost of the goods.

The fee is owed when cargo is unloaded at a covered U.S. port. It is paid when the broker files the entry summary, along with duties and other fees.

How it’s used

Here is how HMF moves from invoice to payment:

1. Find the entered value: Start with the commercial invoice, and take out international freight and insurance if the price includes them.

2. Check the shipment: Confirm the goods came by ship to a covered U.S. port, and look for exemptions.

3. Do the math: Multiply the entered value by 0.00125.

4. File and pay: The broker reports the fee under code 501 on the entry summary and pays it to CBP with the duties.

5. Get billed and reconcile: The broker bills the importer, and the AP team matches the charge to the entry.

The foreign trade zone path

A foreign trade zone is a secure area in the U.S. where imported goods can be stored before duty is paid. The company that brings goods into one pays HMF once a quarter on CBP Form 349, due 31 days after the quarter ends, instead of on each entry.

Most HMF trouble is not in math. It is a charge that looks right but is not, like a fee calculated on the invoice total, or one billed on an air shipment that never owed it.

Example

A furniture importer brings in a container of sofas, invoiced at $84,000 CIF Los Angeles. CIF means the price already includes freight and insurance. Here, $3,600 is ocean freight and $400 is insurance, so the entered value is $80,000.

HMF is $80,000 × 0.00125, which comes to $100.00. If the broker’s bill shows $105.00, someone used the full $84,000 by mistake.

Now change one detail. If the same sofas had come by air, HMF would be $0, because only cargo that moves by ship owes it.

Where HMF shows up on an entry

The fee has its own line on the entry summary, next to the other customs fees.

HMF is reported under code 501 on the entry summary, calculated on the entered value, and listed next to the merchandise processing fee (code 499).

Types

HMF is one charge with one rate, so it has no formal types. What changes is who owes it and how it is paid. CBP treats these as four categories.

Import HMF

Import HMF is the type most people see. The importer pays it when the entry summary is filed, so a retailer bringing in a container of furniture pays it on every ocean shipment.

Domestic HMF

Domestic HMF applies to cargo that ships between two U.S. ports. The shipper pays it each quarter on Form 349, and shipments of $1,000 or less are exempt.

Foreign trade zone HMF

Foreign trade zone HMF applies when imported goods are admitted into a foreign trade zone. The company that brings them in pays it each quarter on Form 349, not on each entry.

Passenger HMF

Passenger HMF applies to cruise fares. The cruise operator pays it each quarter, so importers almost never see it.

Variations

Ocean vs. air, truck, or rail

Only cargo that moves by ship owes HMF. Imports by air, truck, or rail owe none.

HMF vs. MPF

The MPF is a different customs fee that sits next to HMF on the entry summary. It is 0.3464% of entered value, with a minimum of $34.58 and a maximum of $670.86 for fiscal year 2027, and it applies to imports by any mode. HMF has no cap and applies only to ships.

Imports vs. Exports

Imports pay HMF, and exports do not. In 1998, the Supreme Court ruled that charging it on exports was unconstitutional.

Formal vs. Informal entry

Small shipments that qualify for informal entry, generally about $2,500 or less, owe no HMF.

Dutiable vs. Duty-free goods

HMF applies even to duty-free goods that arrive by ship, including goods that qualify under a trade agreement such as USMCA.

Paid vs. Refunded

When imported goods are later exported or destroyed, duty drawback can return up to 99% of the HMF that was paid.

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