Understanding the E1 Visa Domestic Operations Requirement

The E1 visa is an excellent option for Canadian businesses looking to grow their US client base without requiring a substantial investment or a US office. However, many applicants overlook one critical requirement: domestic operations. Here, we explain international trade for the E1 Treaty Trader visa and its domestic operations component.

Essential Criteria for the E1 Visa

1. Treaty Existence: A treaty between the US and the treaty country (Canada) must exist.
2. Nationality: The business and/or employee must possess the treaty country’s nationality (Canadian citizenship, not permanent residency).
3. Qualifying Trade Activities: The business must participate in qualifying trade activities such as international banking, insurance, transportation, tourism, communications, and newsgathering.
4. Purpose: The applicant must come to the US to be involved in qualifying trade activities.
5. Principal Trade: The trade must be between the US and the treaty country (Canada).
6. Qualifications: The applicant must be in an executive/supervisory position or possess essential skills crucial to the business in the US.
7. Non-Immigrant Intent: The applicant must have non-immigrant intent.

The Overlooked Domestic Operations Requirement

Many E1 visa denials result from overlooking the requirement that a business must trade within its domestic market, not just internationally. Here’s a breakdown:

Example:

• Gross Operations: $2M
• Domestic Trade in Canada: $1M
• International Trade outside Canada: $1M
• International Trade with the USA: $500K
• International Trade with Other Countries: $500K

In this scenario, 50% of the international trade is with the USA, meeting one part of the requirement. However, the crucial aspect is that the business also conducts substantial trade within Canada.

Why Domestic Operations Matter

According to the Foreign Affairs Manual (FAM), a qualifying E1 visa business must have a domestic market. The purpose of the E1 visa is to foster international trade between the US and the treaty country. Therefore, a company that does not conduct significant domestic trade in Canada is unlikely to qualify.

Alternatives to the E1 Visa

If your business lacks a substantial domestic market, consider other visa options that better suit your needs. The E2 Visa is designed for investors and entrepreneurs who wish to start or purchase a business in the US. Unlike the E1 Visa, the E2 Visa focuses on investment rather than trade, requiring a substantial investment in a US enterprise. On the other hand, the TN Visa is available to Canadian and Mexican citizens under the USMCA (United States-Mexico-Canada Agreement). The TN Visa allows professionals in certain occupations to work in the US, provided they meet the specific requirements for their profession. This visa benefits skilled engineering, scientific research, and business consulting workers. The E2 and TN visas offer valuable pathways for businesses and professionals seeking to expand into the US, providing flexibility and opportunities that may not require a solid domestic market presence in the home country.

Conclusion

Understanding the domestic operations requirement is essential for a successful E1 visa application. Ensure your business meets all criteria, including significant domestic trade, to avoid denials and maximize the E1 visa benefits. For more detailed guidance, please consult with one of our experienced immigration lawyers to navigate the complexities of the E1 visa application process.

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Citations

• 9 FAM 402.9-5(B) Trade for E-1 Purposes

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