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What's the difference between a tariff, broker & MPF? (retrofed.com)
submitted 2 days ago by to c/explainlikeimfive@lemmy.world
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I know they're separate charges when a package is being imported, as a tariff is imposed on goods being made in a particular region while MPF is something else but it's billed alongside a tariff while customs brokerage fees is its own thing (if I'm understanding that right). They do add up combined making the item cost more than its face value despite it being purchased elsewhere.

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[–] 1 point 2 days ago* (last edited 2 days ago) (1 child)

The tariff is the actual tax. The MPF is a Merchandise Processing Fee charged by Customs for assessing your package. The Brokerage fee is charged by the shipping company to pay for the process of presenting a package to customs on your behalf.

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  • [–] 1 point 2 days ago*

    Yep. In plain terms: you pay the government a fee for exercising a free market choice, you pay a different part of the government for the service of inspecting your purchase, and then you pay a company who will deal with the hassle of the government inspecting your purchase.

    Your mileage will vary by country and type of good. I have gone in person to process an import, and the agent was nice and just charged me the equivalent local sales tax (assuming my time has no value).

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