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Act Now – Urge Your Elected Officials to Fix USMCA MPF Issue

Date: June 23, 2020

The merchandise processing fee (MPF) is currently not refundable, due to a technical error during drafting of the United States-Mexico-Canada Agreement (USMCA) implementing bill. This has the potential to cost suppliers millions of dollars during an already difficult transition time. Furthermore, MPF post importation refunds are available for all U.S. trade agreements (including the NAFTA starting in 1997 and codified in 1999) and is particularly important for the USMCA as it is implemented. Congress must work quickly to pass a technical correction amendment that would allow refund of these fees after importation by or shortly after the USMCA July 1 Entry into Force date. Please use this campaign to contact your Member of Congress and urge them to act on this critical issue today.

The motor vehicle and parts sectors have complex new rules of origin requirements to implement at the USMCA Entry Into Force on July 1. This will be expensive, as trade and customs departments learn new labor value content (LVC), regional value content (RVC), and steel and aluminum procedures. The overall industry is in a significant economic downtown, and the motor vehicle parts industry has a severe liquidity problem, with about 20 percent of that sector facing potential insolvency in the next few weeks, according to a MEMA survey

While the bipartisan House Ways and Means and Senate Finance Committee, USTR, and Customs and Border Protection (CBP) all agree this MPF technical correction needs to be passed, we need them to make the correction quickly.

MEMA encourages you to reach out to your elected officials and tell them to pass a technical corrections amendment that will fix the MPF error. Click here to take action.

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