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E1 Treaty Trader Visa
The E-1 nonimmigrant classification allows a national of a treaty country (a country with which the United States maintains a treaty of commerce and navigation, or which the United States maintains a qualifying international agreement, or which has been deemed a qualifying country by legislation) to be admitted to the United States solely to engage in international trade on his or her own behalf.
A complete list of the countries on the list can be found by clicking here.
The trade must also be substantial, regular, and continuous (i.e., cannot be based on one or non-regular trade transactions). Furthermore, the US company must take title to the imported or exported goods or services (i.e., shipping from abroad to a US customer, where the US entity only coordinates logistics and does not take title to the merchandise, does not qualify as trade). There must also be a meaningful exchange of money with a foreign entity in the treaty country.
If the US entity is a newly established company, it must have already begun trading with the treaty country or must have binding contracts that call for the immediate exchange of goods or services in order to qualify for a visa (in other words, the US government will not grant a visa to prospective traders looking for trading relationships).
If all these conditions are met, the treaty investor can obtain an E-1 visa if s/he directs the trade.
The US company can also hire any treaty national (ie, who is not the investor himself) who will assume an executive, supervisory or essential skills position at the company.
In order for someone to be eligible for an E1 visa, the work they are conducting must be considered trade. The E-1 visa is available in situations where a treaty national or business invests in a new or existing US entity that engages in substantial international trade of goods or services with their home country. The treaty national (or another treaty national or business) must purchase (or own) at least 50% of the shares of the US company, and the volume of trade between the home country and US must be more than 50% of the trader’s total international trade volume.
In the E-1 framework “goods” are defined as tangible commodities or merchandise having extrinsic value. “Services” are defined as legitimate economic activities which provide something other than tangible goods.
According to the US Department of State, trade requires there to be:
(1) a “meaningful” exchange,
(2) international in scope, and
(3) a qualifying commodity such as goods, money, or services. Additionally, there must be existing trade between that individual or entity and the United States.
A treaty trader or employee may only work in the activity for which he or she was approved at the time the classification was granted. An E-1 employee, however, may also work for the treaty organization’s parent company or one of its subsidiaries as long as the:
- Relationship between the organizations is established
- Subsidiary employment requires executive, supervisory, or essential skills
- Terms and conditions of employment have not otherwise changed.
- The trade between the countries must be traceable and identifiable and the trade must already exist at the time of filing.
Note: The E-1 visa does not permit a trader to come to the United States to seek out trade relationships where no trade currently exists. Under the regulations, binding contracts that show there will be an immediate exchange of trade items can meet this requirement, although in practice many Consulates require several months or a year of existing trade before they will grant an E-1 visa.
To qualify for E-1 classification, the treaty trader must:
- Be a national of a country with which the United States maintains a treaty of commerce and navigation
- The work you are conducting must be considered “trade”
- Carry on substantial trade. Substantial trade is defined as trade “sufficient to ensure a continuous flow” between the US and the treaty country. This means consular officers granting E1 visas will be focused on the number of transactions more than the monetary value.
- Carry on principal trade between the United States and the treaty country which qualified the treaty trader for E-1 classification.
- You must be vital to the success of the company. In order to be granted the E1 visa, you must not only be of the same nationality as the primary employer and have evidence of being legally employed, but you must have valid evidence to show you are necessary for the company to run efficiently. This could include your role and qualifications as a supervisor, manager or executive, or otherwise having special qualifications.
- You must provide evidence that you plan on departing the US following the termination of your E1 visa status. Although you are not required to provide evidence that you will maintain property abroad, you must demonstrate that you will leave the United States upon the termination of your E1 visa status. This can come in the form of a declaration.
Trade is the existing international exchange of items of trade for consideration between the United States and the treaty country. Items of trade include but are not limited to:
- Goods
- Services
- International banking
- Insurance
- Transportation
- Tourism
- Technology and its transfer
- Some news-gathering activities.
A non-exhaustive list of the documents that can be submitted to satisfy the E-1 trade requirements is below.
- Contracts and Invoices
- Company bank statements with financial transactions against the trade
- Purchase orders
- Inventory records
- Bills of lading
- Sales contracts or contracts for services
- Letters of credit
- Company’s federal income tax returns
- The E-1 visa applicant must show they intend to engage in “substantial trade,” which is not strictly defined. However, as a rule of thumb, the trade must be a continuous flow that should involve numerous transactions over time.
- Number of transactions and value of each transaction is a major factor of consideration for e1 treaty trade validation process.
- At least 50% of the trade volume carried out must be between the United States and the designated treaty country (“principal trade”).
- The trade could be in the form of physical movement of goods, transportation, or non-physical services, including banking and insurance, tourism, technology, or journalism.
- The applicant must be a national of one of the treaty countries (this requirement does not apply to family members).
- As with other U.S. Visa terms, the applicant should be prepared to provide evidence that they intend to return to their home country at the end of the visa period (see extensions below.)
Note: For startups, entrepreneurs, and smaller private companies, particularly those engaged in trade of services, the Department of State is likely to consider if the income derived from the international trade is sufficient to support the treaty trader and his or her family.
- There are many benefits to the E1 Visa. A few of these benefits are as follows.
- You can legally work in the United States.
- You can travel freely in and out of the United States.
- The visa can be renewed indefinitely for up to two years at a time
- Your spouse and dependent children (children who are unmarried and under 21 years of age) can also qualify for E1 status. With E1 status, your children can go to school and your spouse can apply for employment authorization (the EAD: Employment Authorization Document).
It is also possible for employees to come to the United States under an E-1 visa for trade purposes, provided they meet the following conditions:
- Be the same nationality of the principal alien employer (who must have the nationality of the treaty country)
- Meet the definition of “employee” under the relevant law
- Either be engaging in duties of an executive or supervisory character, or if employed in a lesser capacity, have special qualifications.
- They must be in a managerial or supervisory role that requires specialist skills or knowledge.
- The employer must either be in the United States on a current E-1 visa or, if the employer is outside the U.S., must prove that they could meet the conditions of E-1 qualification.
Family of E-1 Treaty Traders and Employees
Treaty traders and employees may be accompanied or followed by spouses and unmarried children who are under 21 years of age. Their nationalities need not be the same as the treaty trader or employee. These family members may seek E-1 nonimmigrant classification as dependents and, if approved, generally will be granted the same period of stay as the employee. If the family members are already in the United States and seeking change of status to or extension of stay in an E-1 dependent classification, they may apply by filing a single Form I-539 with fee. Spouses of E-1 workers may apply for work authorization by filing Form I-765 with fee. If approved, there is no specific restriction as to where the E-1 spouse may work.
Validity of E1 Treaty Trader Visa
If processed as a change of status, the time period will generally be 2 years. If processed at a consulate, the visa can be valid for up to 5 years but the actual time will depend on the reciprocity agreement between countries and the decision taken by the consulate.
Examples of an E-1 Treaty Business
- An Information Technology company that provides services (at least 51% of services) to U.S. clients.
- A business process outsourcing (BPO), call center, accounting firm, social media marketing agency, outsourcing agency, international staffing agency, travel agency, security surveillance agency, truck dispatching services, medical billing services, and lead generation agencies that provides services (at least 51% of services) to U.S. clients.
- An import/export company that exports a large number of products (food, commodities, car parts, etc.) to the U.S.
- A fashion company or clothing seller that has a significant amount of international sales to U.S. customers.
- A media production company that wants to make a ads, production, animation, movie or TV show in the U.S. and has done this often in the past such that greater than 50% of the services they are offering are in the U.S.
- As with other U.S. Visa terms, the applicant should be prepared to provide evidence that they intend to return to their home country at the end of the visa period (see extensions below.)
