E1 Visa – Substantial Trade?

Video Transcript – Welcome to the Law Offices of Chris M. Ingram. We’re thrilled to have you here for Part 4 of our video series on the E-1 Treaty Trader visa. In this video, we’ll break down what it means to have substantial trade with the U.S. and how much trade is needed to qualify for an E-1 visa.

How Much Trade Do I Need to Show? –Great question! But there’s no one-size-fits-all answer. Here’s how we approach the issue: The adjudicating officer will look at your overall business model and ask whether there is a continuous flow of goods or services between the two countries.

In the previous video, looking at Example 2 of the previous video, where Mary Jones’ call center in the Philippines provides medical billing services for U.S. doctor’s offices, you can see there’s a consistent flow of services being exchanged. So, the starting point is looking at the frequency of transactions.

Additionally, the officer will consider the monetary value of each transaction. For instance, John Smith, who imports carpets to his Canadian store, might place single orders worth $150,000 four times a year. That adds up to $600,000 of business annually, which is pretty substantial.

And finally, the officer will assess whether the volume and value of trade are sufficient to generate enough net profit to support the person living in the U.S. and ensure the ongoing flow of international business.

To determine whether your trade is considered substantial, you need to evaluate how much business you’ll need to conduct between the U.S. and your home country to make a sufficient profit to support you and your family. In other words, if the net benefit to the foreign company is minimal, the adjudicating officer could decide that the trade isn’t substantial enough.

What if My Company Trades with Multiple Countries? – If your company trades with countries other than the U.S., the rule is that at least 50% of your trade must be with the U.S. For example, if your business only conducts 20% of its trade with the U.S. and 80% with other countries, your application would be unsuccessful.

It’s worth noting that some foreign companies also do business within the U.S. for their U.S. clients. In such cases, as long as 50% of the foreign company’s total trade flows outside the U.S. to their home country, the 50% rule is still satisfied.

Alternative Strategy – If your company can’t meet the 50% rule due to a broad international clientele, one strategy could be to establish a subsidiary company focused exclusively on building a trading partnership with the U.S., with minimal or no trade with other countries. However, setting up a new branch wouldn’t work since a branch is just an extension of the foreign company, whereas a subsidiary is a separate legal entity.

It’s essential to seek legal advice to ensure any alternative strategy is compliant with E-1 Visa regulations if meeting the 50% rule is a concern.
In our next video, we’ll cover the employment options available for E-1 Visa holders. Thanks for joining us today — we hope you enjoyed this presentation and look forward to having you with us in the next session.

Chris M. Ingram, a U.S. Immigration Attorney, is originally from Northampton, England. He earned his BA (Hons) in Law from De Montfort University, Leicester, UK, in 1994. In 1996, he completed his Post Graduate Diploma in Legal Practice (PGDLP) at De Montfort School of Law, followed by a Master of Laws (LL.M.) from Huddersfield University, UK, in 1998. After relocating to the United States, Chris was admitted to the New York State Bar in 2003 and has been a proud member of the American Immigration Lawyers Association (AILA) since 2004.

Having experienced the U.S. immigration process firsthand with his wife and three children, Chris M. Ingram founded his law firm with a mission to ensure that every client receives the best possible immigration experience. He recognized the need for accessible and comprehensive immigration education, leading him to develop one of the most informative online platforms available today.

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