April 2026 CBLE · Category VI: Valuation, Appraisement and Duty Assessment · Question 68 of 80
April 2026 CBLE, question 68
Coffee Inc., a Canadian company, buys raw coffee beans from Colombia classified under the Harmonized Tariff Schedule (HTS) subheading 0901.11. Coffee Inc. then processes the beans into instant coffee classified under 2101.11.21. The instant coffee is then imported into the U.S. for sale. In order for the instant coffee to qualify for preferential tariff treatment under the United States-Mexico- Canada Agreement (USMCA), which of the following statements must be TRUE?
- The nonoriginating coffee must constitute no more than 60 percent by weight of the good.
- The nonoriginating coffee must constitute no more than 75 percent by weight of the good.
- The nonoriginating coffee must constitute no less than 60 percent by weight of the good.
- The nonoriginating coffee must have a Labor Value Content (LVC) of thirty percent, with at least 15 percentage points of high-wage material.
Show the official answer
Official answer: A: The nonoriginating coffee must constitute no more than 60 percent by weight of the good.
Citation in CBP's key: General Note 11(o), Chapter 21, HTSUS