I just don't understand?

[Z-Michigan]

Why don't you attempt to purchase some of Toyota's stock and then complain to your broker that you are a US Citizen and you don't want the Toyota ADR that is listed on the NYSE but instead you only want the real Japanese stock?

Even better yet, just set up your own overseas corporation and make yourself the sole shareholder and then see what the IRS and Justice Department have to say about your offshore foreign corporation......

Hello-

I'm a lawyer with a practice involving considerable international work, including international investment work. I am not aware of any US laws that would preclude either of these options. In fact, I can positively say that setting up your own foreign corporation is OK, at least as far as US law, though you had better not try to use it to avoid taxes or else you will face US tax enforcers. There are some fairly detailed tax reporting requirements if you own investments in non-US companies (whether they are stocks, bonds, or bank deposits) but if you comply with the reporting obligations there is nothing illegal, at least under US law, about investing in most other countries. Of course you can't invest in the short list of countries that we impose sanctions on, such as Iran and Cuba, but as far as Japan, UK, Germany etc. there are no issues.

As a practical matter a US stockbroker probably won't help you buy direct shares of foreign companies, only ADRs. I don't specialize in securities laws and I don't know if there are US securities laws issues for this. There could also be foreign laws on point, but you would have to look at each country. For instance, India and China heavily regulate foreign investment, while Canada and the UK have minimal restrictions.

 

[MikePA]

Mike ... I've read the same things you have. My 10% estimate is based on the model lines built entirely in the United States (sans Canada). Is this incorrect?

All I asked for was the source for the 10% number you mentioned. Why would I have to prove your number incorrect? Don't you think it's reasonable to ask for a source when someone mentions a figure as you did in the following quote?

They do make about 10% of their model line in the US, but the other 90% are a global congolomerate, right down to the tires.

The figures I quoted are correct and are contained in legal documents filed with the SEC, not figures from marketing literature and they were not meant to obfuscate anything. Rather, they are facts that could be used to infer what JD does in North America.

 

[scott_vt]

It is illegal for a US citizen to own foreign stock like I said previously. You can only hold an ADR, which then subjects you to the foreign counties income tax laws, etc.....

An American Depositary Receipt (ADR) is a share of stock of an investment in shares of a non-US corporation. The shares of the non-US corporation trade on a non-US exchange, while the ADRs, perhaps somewhat obviously, trade on a US exchange. This mechanism makes it straightforward for a US investor to invest in a foreign issue. ADRs were first introduced in 1927

Afternoon Thom,
I own some Amer_Europacific Growth mutual funds in my 401K. Do ADRs apply to overseas mutual funds or is this strictly for overseas stock ?

 

[turbo36]

Hello-

I'm a lawyer with a practice involving considerable international work, including international investment work. I am not aware of any US laws that would preclude either of these options. In fact, I can positively say that setting up your own foreign corporation is OK, at least as far as US law, though you had better not try to use it to avoid taxes or else you will face US tax enforcers. There are some fairly detailed tax reporting requirements if you own investments in non-US companies (whether they are stocks, bonds, or bank deposits) but if you comply with the reporting obligations there is nothing illegal, at least under US law, about investing in most other countries. Of course you can't invest in the short list of countries that we impose sanctions on, such as Iran and Cuba, but as far as Japan, UK, Germany etc. there are no issues.

As a practical matter a US stockbroker probably won't help you buy direct shares of foreign companies, only ADRs. I don't specialize in securities laws and I don't know if there are US securities laws issues for this. There could also be foreign laws on point, but you would have to look at each country. For instance, India and China heavily regulate foreign investment, while Canada and the UK have minimal restrictions.

Waiting with nervous anticipation for Skypup's rebuttal

 

[SkyPup]

No problem, I know all that. You can only purchase ADR's here as perviously mentioned. If you serve on a foreign board of directors of a foreign corp. you still only have ADRs.

Owning an ADR in a company in a county like Sweden subjects your assests to their extreme socialist taxation prior to you receiving even one cent, er Kroner, er Euro... so be sure to understand the tax laws of the resident country the corporation is incorporated in.

Foreign assests subject you to extreme scrutiny by the Treasury, be certain to have a competent CPA with a JD in International Law preparing your 1040 for you.....

A good bet would be an ADR in a country like Communist China, I don't think the Chinese collect any taxes, they just take whatever they feel like taking.......

 

[AB4D]

The figures I quoted are correct and are contained in legal documents filed with the SEC, not figures from marketing literature and they were not meant to obfuscate anything. Rather, they are facts that could be used to infer what JD does in North America.

"According to Deere's 2006 10-K report;
69% of the manufacturing square footage
58% of their employees
76% of their operating profit
are in/from operations in the US and Canada."

But, what is Deere's interpetation of manufacturing? 69% of manufacturing square footage may not equate to 69% of their machines being produced/assembled in the USA/CDN. It all depends on Deere's interpetation of manufacturing, is it producing items from raw materials, or is it just assembly components from abroad into a final product??? However, I agree that the 10% figure seems not to be in accord with Deere's 10-K report, but like most statistical reports, this type of information can be manipulated or open to interpetation when it is defined by subjective terms.

 

[patrick_g]

I just received some info from THE HORSES MOUTH.

Patrick: We manufacture Tractors in Waterloo, IA. Here's the address:

John Deere Waterloo Works
P. O. Box 270, (400 Westfield Avenue)
Waterloo IA 50704-0270
-- 7000, 8000, and 9000 Series tractors

Barry E. Nelson
Manager, Public Relations
John Deere Ag Marketing Center
Lenexa, KS 66219-2302
Phone: 913-310-8324
Fax: 913-310-8394


I guess if you have a 7, 8, or 9000 series JD it is American.

Patrick

 

[Casey1]

All I asked for was the source for the 10% number you mentioned. Why would I have to prove your number incorrect? Don't you think it's reasonable to ask for a source when someone mentions a figure as you did in the following quote?

​

The figures I quoted are correct and are contained in legal documents filed with the SEC, not figures from marketing literature and they were not meant to obfuscate anything. Rather, they are facts that could be used to infer what JD does in North America.

You make it sound like legal filed with an acronym guarantees accuracy and is just plain inarguable fact. I don't think so. Does JD do any business in Mexico? They don't know the difference between Canada and the US so they probably don't realize that Mexico is in North America either. Or could it be they might be trying to make their numbers look more 'American'.

 

[MikePA]

You make it sound like legal filed with an acronym guarantees accuracy and is just plain inarguable fact. I don't think so. Does JD do any business in Mexico? They don't know the difference between Canada and the US so they probably don't realize that Mexico is in North America either. Or could it be they might be trying to make their numbers look more 'American'.

I sited my source. I did not vouch for it's accuracy I simply mentioned it was contained in a legal document. Also, JD uses the phrase 'North America' and 'US and Canada' in various places. I simplified it, I was not looking for an argument about geography.

Please answer my question. What is wrong with asking DAP to site his source for the 10% figure he mentioned?

 

[dgl24087]

You make it sound like legal filed with an acronym guarantees accuracy and is just plain inarguable fact. I don't think so. Does JD do any business in Mexico? They don't know the difference between Canada and the US so they probably don't realize that Mexico is in North America either. Or could it be they might be trying to make their numbers look more 'American'.

I believe the JD manufactured engines for the CUT's are from Mexico.