Published: 4 March 2026

HMF Tax Statement: What Australian Importers Need to Know

If you're an Australian business owner or individual who imports goods from the United States, you may have noticed a line item labelled "HMF" on your shipping documents or tax-related statements. HMF stands for Harbor Maintenance Fee, and while it's a United States-specific charge, it directly affects the total cost of goods imported into Australia from US ports. Understanding how this fee works can help you better plan your import costs and manage your business finances effectively.

In this guide, we'll explain what the HMF is, how it's calculated, when it applies, and how it fits into the broader picture of your import-related expenses. Whether you're running a small e-commerce business or managing larger commercial shipments, knowing about HMF can save you from unexpected costs and help you maintain accurate financial records.

What is the Harbor Maintenance Fee (HMF)?

The Harbor Maintenance Fee is a user fee collected by U.S. Customs and Border Protection (CBP) on cargo imported into the United States via ocean freight. Established by the Water Resources Development Act of 1986, the HMF was created to help fund the maintenance and construction of harbors, inland waterways, and related flood-control projects across the United States. While this might seem like an internal US matter, it becomes relevant to Australians when goods are transhipped through US ports or when Australian businesses maintain US-based inventory that ships internationally.

The HMF applies to a wide range of cargo movements, including imports arriving by sea, domestic shipments travelling between US ports, admissions to Foreign-Trade Zones (FTZs), and even passengers on commercial cruise ships. For Australian importers, the most common scenario where you'll encounter HMF is when purchasing goods from US suppliers who ship via ocean freight. Understanding this fee is essential because it adds to your landed cost of goods and can impact your pricing strategy and profit margins.

How is HMF Calculated?

The Harbor Maintenance Fee is calculated as a straightforward percentage of the cargo's declared value. Specifically, HMF equals 0.125% of the commercial invoice value of the goods being shipped. Unlike some other import fees, there is no minimum or maximum cap on HMF — it scales directly with the value of your shipment.

For example, if you're importing goods valued at $20,000 USD from the United States, the HMF would be $25. For a larger shipment valued at $100,000 USD, the HMF would be $125. While these amounts might seem relatively small compared to the total shipment value, they add up over time for businesses that import regularly. It's also worth noting that unlike Australia's Import Processing Charge (IPC), which has fixed tiers, HMF is purely value-based and will fluctuate with your shipment values.

HMF vs. Other US Import Fees

When importing from the United States, Australian businesses often encounter multiple fees. Understanding how HMF differs from other charges can help you read your shipping invoices more clearly and budget more accurately for future imports. The two most common fees alongside HMF are the Merchandise Processing Fee (MPF) and various customs duties.

The Merchandise Processing Fee is another user fee collected by US Customs, calculated at 0.3464% of the merchandise value (excluding duty, freight, and insurance). Unlike HMF, MPF has minimum and maximum limits — $31.67 minimum and $614.35 maximum for formal entries. For informal entries under $2,500, MPF is a flat $31.67. Customs duties, on the other hand, vary widely depending on the product type and applicable trade agreements. Under the Australia-United States Free Trade Agreement (AUSFTA), many Australian imports to the US are duty-free, but this doesn't eliminate HMF or MPF as they are user fees, not tariffs.

HMF on Your Tax and Import Statements

When you receive your freight forwarder's invoice or customs broker statement, HMF will typically appear as a separate line item alongside other charges like ocean freight, documentation fees, customs duties, and MPF. It's important to keep detailed records of these HMF payments, as they form part of your cost of goods sold and may have implications for your Australian tax reporting.

For Australian tax purposes, HMF — like other import-related costs — generally forms part of the landed cost of your goods. This means it can typically be included in the cost base of your inventory for capital gains tax purposes or deducted as part of the cost of trading stock. If you're registered for GST in Australia, you'll also need to factor in the 10% GST payable on the total landed value of your imports (including freight, insurance, customs duty, and fees like HMF). Use our Income Tax Calculator to understand how your business income and expenses affect your overall tax position for FY 2025-26.

Exceptions and Special Cases

While HMF applies broadly to ocean freight, there are some exceptions that Australian importers should be aware of. The most significant exemption is for cargo that arrives in the United States via ocean but enters through a Canadian port and is then transported into the US by rail or truck. This routing can sometimes be used strategically to avoid HMF, though it adds complexity and transit time to your supply chain.

Additionally, certain types of cargo may qualify for exemptions or special treatment. For instance, goods entering Foreign-Trade Zones (FTZs) may have different HMF treatment depending on whether they remain in the zone or enter US commerce. If you're involved in more complex import arrangements or maintain US-based distribution centres, consulting with a customs broker who understands both US and Australian regulations can help you navigate these rules effectively and potentially optimise your import costs.

Planning for Import Costs as an Australian Business

Understanding fees like HMF is part of running a successful import business in Australia. When calculating your total cost of goods, remember to include not just the purchase price but also international freight, insurance, US fees (HMF, MPF), Australian customs duty (if applicable), GST, and local delivery costs. These can add significantly to your per-unit cost and affect your pricing strategy.

For Australian workers and freelancers who import goods as part of their business, these import costs also affect your taxable income. Keeping detailed records of all fees, including HMF, ensures you can claim appropriate deductions and accurately report your business income. If you're considering importing as a side business or expanding an existing operation, use our Take-Home Pay Calculator to see how additional business income might affect your overall financial situation. Additionally, consider whether salary sacrificing into superannuation could help reduce your taxable income from your primary employment while you build your import business.

Summary

The Harbor Maintenance Fee (HMF) is a 0.125% charge on ocean freight cargo entering the United States that Australian importers should factor into their cost calculations. While relatively small compared to other import costs, understanding HMF helps you read your shipping statements accurately and maintain proper financial records. Combined with other fees like MPF and Australian GST, these charges form part of the total landed cost of your imported goods. By staying informed about international shipping fees and Australian tax obligations, you can run a more profitable and compliant import business.