October 2023 — Question 56
When making a claim using Special Program Indicator (SPI) “N”, up to what percentage of the appraised value may come from U.S. materials?
- AZero percent (0%)
- BSeven percent (7%)
- CTen percent (10%)
- DFifteen percent (15%)✓ CBP's answer
Why this answer
Special Program Indicator N designates products of the West Bank, the Gaza Strip, or a qualifying industrial zone under the cited general note and statistical note. Duty-free eligibility requires that the cost or value of materials produced there, plus the direct costs of processing operations, total at least 35 percent of the appraised value, and the provision expressly permits the cost or value of materials produced in the United States to be counted toward that threshold up to a maximum of 15 percent of the appraised value. Fifteen percent is therefore the ceiling on U.S. content. The smaller percentages tempt because they mirror de minimis allowances in other preference programs, but they play no role here. Watch for: Confusing the 15 percent U.S.-materials allowance with the 7 or 10 percent de minimis figures.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2023 examination.
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