Related Glossary
What Is Harbor Maintenance Fee (HMF)?
The Harbor Maintenance Fee (HMF) is a U.S. federal fee assessed on commercial cargo imported into, or transported between, U.S. ports. It is calculated as a percentage of the cargo’s declared value and is collected to fund the maintenance and improvement of federally maintained harbors and waterways across the United States.
The fee applies primarily to imported cargo and domestic shipments moving between U.S. ports, including coastal and Great Lakes trade. HMF is typically paid by the importer, shipper, or cargo owner as part of the customs entry or shipment reporting process.
Purpose
The Harbor Maintenance Fee supports the long-term functionality, safety, and reliability of U.S. port infrastructure, which is critical to maintaining efficient maritime trade and supply chain continuity. Its primary purposes include:
Funding dredging and channel maintenance: Ensuring ports, harbors, and navigation channels maintain adequate depth and width so commercial vessels of varying sizes can safely enter, berth, and depart without restrictions or delays.
Maintaining port infrastructure: Supporting the ongoing upkeep of harbors, waterways, and federally maintained channels that are essential for handling domestic and international cargo movements efficiently.
Reducing congestion and operational delays: Well-maintained waterways minimize vessel slowdowns, berth congestion, and scheduling disruptions caused by draft limitations or deteriorating port conditions.
Ensuring fair cost allocation: Allocating maintenance costs to port users who directly benefit from federally funded harbor facilities, promoting equity across shippers, carriers, and cargo owners.
Strengthening U.S. trade competitiveness: Enabling ports to accommodate larger vessels, higher cargo volumes, and evolving trade patterns, ensuring U.S. ports remain competitive within global shipping networks.
Supporting supply chain resilience: Reliable port infrastructure helps reduce the risk of disruptions that can cascade across transportation networks, inventory planning, and downstream distribution.
Sustaining long-term infrastructure investment: Providing a consistent funding mechanism that allows ports to plan and execute maintenance projects proactively rather than reactively.
Regulation
HMF is regulated under U.S. federal law and administered by U.S. Customs and Border Protection (CBP). Compliance with these regulations is essential for importers, shippers, and cargo owners to avoid financial and operational risk. Key regulatory and compliance elements include:
Legal framework: Established under the Water Resources Development Act, which authorizes the collection of fees to fund the maintenance of federally managed ports and navigation channels.
Scope of application: Applies to most commercial imports entering U.S. ports and to domestic waterborne shipments between U.S. ports, with clearly defined exemptions for certain cargo types and movements.
Fee calculation: Assessed as a percentage of the cargo’s declared value, as reported to CBP. Accurate valuation and classification are critical to ensure the correct fee is applied.
Reporting and payment: Declared and paid through CBP customs entry filings and approved electronic payment systems as part of the import or shipment clearance process.
Audits and enforcement: Subject to CBP audits and compliance reviews, requiring organizations to maintain accurate records, supporting documentation, and audit trails.
Failure to comply with HMF regulations can result in penalties, shipment delays, retroactive fee assessments, or increased scrutiny during future customs reviews.
Key Situations Where HMF Applies
Harbor Maintenance Fee commonly applies in the following scenarios:
Imported cargo entering U.S. ports for consumption or warehousing: Most commercial imports are subject to HMF when they arrive at federally maintained U.S. ports, regardless of cargo type.
Domestic shipments between U.S. ports: Cargo moved via coastal routes, inland waterways, or the Great Lakes may incur HMF when transported between qualifying U.S. ports.
Containerized and breakbulk cargo: Both containerized and non-containerized cargo may be subject to HMF, depending on how the shipment is classified and reported.
Cargo cleared through U.S. Customs systems: Any cargo requiring customs entry or clearance through CBP systems typically triggers HMF assessment as part of the filing process.
Use of federally maintained harbors and navigation channels: Shipments that rely on federally funded port infrastructure and maintained waterways fall within the scope of HMF applicability.
Correctly identifying applicable shipments is essential to prevent overpayment or non-compliance.
Why It Matters
HMF carries important financial and operational implications:
Affects landed cost and freight budgeting: HMF must be factored into total transportation and import costs.
Impacts compliance and audit readiness: Inaccurate reporting increases exposure to penalties and audits.
Influences pricing and contract terms: Businesses may allocate HMF costs within contracts or pricing structures.
Supports port reliability and safety: Proper fee collection ensures continued investment in infrastructure.
Reduces disputes and delays: Clear understanding helps avoid billing discrepancies and customs issues.
Proactive HMF management supports both regulatory compliance and cost transparency.
Conclusion
The Harbor Maintenance Fee (HMF) is a critical element of U.S. maritime trade, ensuring that ports and waterways remain safe, efficient, and capable of supporting global commerce. By understanding when the fee applies, how it is calculated, and how it must be reported, businesses can better manage costs, remain compliant with customs regulations, and avoid operational disruptions. Accurate documentation and informed planning allow organizations to treat HMF as a predictable component of trade rather than an unexpected expense.
Frequently Asked Questions (FAQs)
Who is responsible for paying the Harbor Maintenance Fee?
Responsibility typically rests with the importer, shipper, or cargo owner, depending on the transaction structure and contractual agreements. In many cases, the party filing the customs entry ensures the fee is properly reported and paid.
Does HMF apply to exports?
Exports are generally exempt from HMF. However, businesses should verify shipment classification and regulatory guidance to confirm eligibility, especially for complex or mixed-use cargo movements.
How is the Harbor Maintenance Fee calculated?
HMF is calculated as a percentage of the cargo’s declared value, based on information provided in customs documentation. Accurate valuation is essential to avoid overpayment or underpayment.
Where and when is HMF paid?
The fee is reported and paid through U.S. Customs and Border Protection systems, typically at the time of cargo entry or shipment reporting.
Can HMF be refunded or adjusted?
Yes. Refunds or adjustments may be available if HMF was overpaid or incorrectly assessed, provided proper documentation is submitted within regulatory time limits.
What happens if HMF is not properly declared?
Failure to declare or pay HMF accurately can lead to customs audits, financial penalties, shipment delays, or retroactive assessments, increasing compliance risk.