Navigating international trade can be complex, particularly when it comes to managing the various fees and regulations associated with it. One such fee—the Harbor Maintenance Fee (HMF)—is a key cost to be aware of for anyone importing goods into the United States via ocean freight.
This guide is designed to help you better understand the HMF by explaining its purpose, how it’s applied, and how to accurately calculate it within your supply chain. Whether you’re a seasoned importer or just entering the world of global logistics, understanding the HMF is essential for effective budgeting, customs compliance, and overall supply chain planning.
What is the Harbor Maintenance Fee?
The Harbor Maintenance Fee is a U.S. federal charge levied on commercial cargo imported by sea. This fee helps pay for the upkeep and development of U.S. ports and harbors. Established under the Water Resources Development Act of 1986, it applies to goods entering the U.S. through maritime routes. Key points:
- Scope: Applies only to sea freight—air and land shipments are exempt
- Rate: 0.125% of the cargo’s commercial invoice value (excluding duties, freight, and insurance)
- Minimum Charge: $25 per bill of lading (BL) for most shipments
Who Is Responsible For Paying The Harbor Maintenance Fee?
The Harbor Maintenance Fee (HMF) is a charge collected by U.S. Customs and Border Protection (CBP) to fund the maintenance of U.S. ports. Here’s who is responsible for paying it:
Importer of Record
The importer of record is the person or business legally responsible for the goods once they arrive in the U.S. This is the owner, consignee, or an authorized party listed on the import documents (such as the CBP Form 7501).
They are ultimately responsible for ensuring all duties and fees, including the HMF, are paid to CBP.
Customs Brokers and Freight Forwarders
While the importer is legally responsible, most importers work with customs brokers to handle the paperwork and payment of fees.
- Brokers are licensed professionals who file import entries, calculate fees (including the HMF), and ensure compliance with relevant regulations.
- Brokers typically pay the HMF on behalf of the importer and then invoice the importer.
- Freight forwarders may also be involved, helping coordinate shipments and working alongside brokers.
- Note: Even if a broker or forwarder pays the fee, the importer remains responsible for ensuring it’s correctly handled.
Domestic Shippers
The HMF also applies to domestic shipments that move through U.S. ports. In these cases, the shipper, not the recipient, is responsible for paying the fee.
Foreign-Trade Zone (FTZ) Users
When goods enter a Foreign-Trade Zone, the HMF is not due right away. The fee is collected only when goods are removed from the FTZ for consumption in the United States.
At that point, the party removing the goods becomes responsible for paying the fee.
If you’re importing goods into the U.S. via ocean freight or shipping domestically through U.S. ports, you, as the importer of record or domestic shipper, are legally required to pay the HMF.
While customs brokers and freight forwarders can manage the process, the ultimate responsibility lies with you.
How is Harbor Maintenance Fee Calculated?
The Harbor Maintenance Fee (HMF) is calculated based on the value of cargo loaded or unloaded at U.S. ports.
Key Calculation Factors:
- Fee Rate: The current HMF rate is 0.125% of the cargo’s value.
- Cargo Value: The fee applies to the total value of the cargo, which is determined by the transaction value or the price paid for the goods.
- Port Activities: The fee is assessed on commercial cargo activities, including loading and unloading at ports.
Exemptions:
- Certain cargo types may be exempt from the fee, including exports and specific government shipments.
How to Include HMF in Your Logistics Costs
For companies importing goods into the United States or shipping domestically through U.S. ports, the Harbor Maintenance Fee (HMF) should be included in the total logistics cost calculation. While the fee is relatively small compared to other transportation expenses, it can still affect profit margins, especially for high-volume importers.
Partnering with a reliable freight forwarder can help you manage this cost more effectively. Experienced forwarders are well-versed in HMF regulations and can ensure the fee is accurately calculated and included in your overall shipping estimates. They can also offer guidance to optimize your transportation strategy and identify opportunities to reduce other costs, helping to offset the impact of the HMF.
