Get Cotton Fee Exempt 2020-2026

Total Assessment The current assessment on imported cotton is $0.011136 per kilogram of imported cotton. The revised assessment in this direct final rule is $0.013215, an increase of $0.002079 per kilogram.

The Merchandise Processing Fee (MPF) for formal entries is an ad valorem fee of 0.3464 percent. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges. The maximum amount of the fee shall not exceed $538.40 and shall not be less than $27.75.

The current assessment on imported cotton is $0.011136 per kilogram of imported cotton.

Importers are exempt from paying the cotton import assessment (known commonly among importers as the “cotton fee”) if a line item on U.S. Customs and Border Protection (CBP) documentation is $2.00 or less.

A cotton fee is collected on imports of cotton and cotton-containing products. The Import Assessment Table contains Harmonized Tariff Schedule (HTS) classification numbers, conversion factors, and the fee per kilogram.

Assessments will be increased from $0.011136/kg to $0.013215/kg to reflect an increase in the weighted average price of upland cotton received by U.S. farmers in 2021. AMS is updating the Harmonized Tariff Schedule (HTS) statistical reporting numbers that were amended since the last assessment adjustment in 2021.

Importers are exempt from paying the cotton import assessment (known commonly among importers as the “cotton fee”) if a line item on U.S. Customs and Border Protection (CBP) documentation is $2.00 or less.

The de minimis figure is an estimate of administrative burden, which is equivalent to the transactions costs of collecting the cotton fee. The de minimis provision was necessary to avoid instances where the transactions costs of collecting the cotton fee exceeded the cotton fee being collected.