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Instant coffee made in Canada from Colombian beans: what must be true for USMCA?

April 2026 examValuation, Appraisement and Duty AssessmentQuestion 68 of 80

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 ?

How to get there

Origin under USMCA for a good with nonoriginating inputs (Colombian beans) depends on the product-specific rule in HTSUS General Note 11(o). For Chapter 21:

HTSUS General Note 11(o), Chapter 21, rule 1 (USMCA)A change to tariff item 2101.11.21 from any other chapter, provided that the nonoriginating coffee of chapter 9 constitutes no more than 60 percent by weight of the good.

Beans (0901.11, Chapter 9) → instant coffee (2101.11.21, Chapter 21) is a change of chapter. The extra condition is the ≤ 60% by weight cap on nonoriginating coffee. The answer is A.

Why the other choices are wrong

B) No more than 75 percent: the wrong threshold. The rule says 60%.
C) No less than 60 percent: the direction is reversed. It's a ceiling on nonoriginating content, not a minimum.
D) LVC of 30% with 15 points of high-wage material: Labor Value Content requirements belong to the USMCA automotive rules, not to coffee.
Tip
A tariff shift often comes with a proviso (a weight or value cap on certain nonoriginating inputs). Read the rule to the end. A chapter change alone doesn't qualify instant coffee if more than 60% of its weight is nonoriginating coffee.

Source: HTSUS General Note 11(o), Chapter 21 product-specific rules (USMCA) (USITC HTS, General Notes).

CBP answer key: Answer A · General Note 11(o), Chapter 21, HTSUSSource: CBP past exams ↗