Skip to main content

What does it mean that the trade is principally between the U.S. and a treaty country? Does the Trade for an E-1 visa have to be with the Treaty Country?

By March 26, 2020May 14th, 2021E-1 Visa, Immigration

One of the E-1 visa requirements is that the trade is principally between the U.S. and a treaty country. This means, that more than 50% of the total volume of the international trade must be between the U.S. and the treaty country.  For example, if a company has trade that was the sale of computers and the sales for year were $1,000,000, at least $500,000 of the trade (or sales of computer) would have to be between the U.S. and the Treaty country in order to qualify for an E-1 visa.

What about the remainder of the trade, are there any restrictions?

The remainder of the trade may be either with other countries or can be a domestic trade. For example, in the above example, it would be fine if $250,000 of the revenue was made up of domestic sales and $250,000 was made up of sales to a non-treaty country.  Please note that the domestic trade conducted in your treaty country is not relevant for the calculation of international trade.

However, some authorities suggest that domestic U.S. trade (trade that takes place entirely in the U.S.) is counted against the trader when calculating the percentage on international trade between the U.S. and the treaty country.  For example, in the above example, the $250,000 in sales in the example above, would be used in the total trade number of $1,000,000 in order to see if the company reached the 50% mark.

How should I calculate the trade?

When calculating the international trade, you should calculate the trade conducted by the treaty trader (this can be either individual or a business entity) who is seeking an E-1 visa classification and the U.S.

When calculating the trade for E-1 visa purposes, it is extremely important to distinguish between a branch and a subsidiary.

Branch is not a separate legal entity and is a part of the entity usually in the Treaty country. Therefore, when calculating trade of a branch, you have to look at trade conducted by the entire entity of which the branch is a part.

On the other hand, subsidiary is a separate legal entity. When calculating trade of a subsidiary, you only have to look at trade conducted by the subsidiary.

Please see our blog post on whether you need a Business Plan for E-1 visa when you click here.

Please see our blog post on whether your business in your home country has to continue after you get an E-1 visa when you click here.

FREE E-1 Visa Resources

Click on the buttons below in order to claim your free E-1 Visa Guide, sign up for our free E-1 Visa Webinar, or watch our E-1 Visa videos.

Download Our E-1 Visa Guide
Sign Up For Our E-1 Visa Webinar
Join Our E-1 Visa Facebook Group
Watch Our E-1 Visa Videos

Set up an E-1 Visa Consultation

For a dedicated one-on-one E-1 Visa consultation with one of our lawyers, click on the button below to schedule your consultation.

Schedule a consultation

This website and blog constitutes attorney advertising. Do not consider anything in this website or blog legal advice and nothing in this website constitutes an attorney-client relationship being formed. Set up a one-hour consultation with us before acting on anything you read here. Past results are no guarantee of future results and prior results do not imply or predict future results. Each case is different and must be judged on its own merits.

Leave a Reply

We are happy to offer our E-1 visa guide that describes the E-1 visa requirements, and other advise to assist with your E-1 visa application.
For more info visit our E-1 visa service Page or schedule a consultation so we can handle your E-1 visa process.