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The advantage of this is that you can add US ratings such as instrument etc on to it whereas you can't with option 1.
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Incorrect.
You can add any US rating to a validated certificate.
IR, Seaplane, ME anything you like.
It will read "US test passed".
You can also add foreign ratings to a validated US PPL by going through the validation process again and having it added.
Example, this year July you apply for and get a US PPL SEP validation.
In two years time you add a Multi engine rating in JAA/EASA land.
You can now re-apply for a US validation with those ratings added.
Get a move on though, you are already late for July as this process can take up to 60 days.