NRE: NRE (non-recurring engineering) is a one-off cost charged once for a project, such as programming, fixture design or tooling, that is not repeated when the same part is re-ordered.
NRE covers the work and items a project needs only once. In machining it might be CAM programming and a custom fixture. In moulding it is the mould itself. In electronics or product work it can be design, testing and certification.
Shops handle NRE in two ways. They charge it as a separate line on the first order, or they spread it over an agreed quantity as tool amortisation. Separating it keeps repeat orders cheaper and makes the price easier to explain.
Example: a CNC part needs 3 hours of programming at €70 an hour (€210) and a soft-jaw fixture worth €150. The NRE is €360. The first order of 50 parts carries a €360 NRE line; a re-order six months later does not.
The common confusion is with setup cost. Setup is repeated every time the batch runs (loading tools, setting offsets); NRE is paid once and then the program or tool is reused. Mixing the two leads to either overcharging re-orders or never recovering the engineering.
Make sure the quote says who owns what the NRE paid for, especially for tooling. For how NRE fits into a full quote, read how to quote manufacturing parts.
Go deeper: How to quote a manufactured part: the estimator's method