[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR570.106]

[Page 330-331]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 570_CHILD LABOR REGULATIONS, ORDERS AND STATEMENTS OF INTERPRETATION
--Table of Contents
 
   Subpart G_General Statements of Interpretation of the Child Labor 
     Provisions of the Fair Labor Standards Act of 1938, as Amended
 
Sec. 570.106  ``Ship or deliver for shipment in commerce''.

    (a) Section 12(a) forbids producers, manufacturers, and dealers to 
`TT`Tship or deliver for shipment in commerceT'TT' the goods referred to 
therein. A producer, manufacturer, or dealer may `TT`TshipT'TT' goods in 
commerce either by moving them himself in interstate or foreign commerce 
or by causing them to so move, as by delivery to a carrier. \7\ Thus, a 
baker `TT`TshipsT'TT' his bread in commerce whether he carries it in his 
own truck across State lines or sends it by

[[Page 331]]

contract or common carrier to his customers in other States. The word 
``ship'' must be applied in its ordinary meaning. For example, it does 
not apply to the transmission of telegraphic messages. \8\
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    \7\ Section 3(b) of the Act defines ``commerce'' to mean ``trade, 
commerce, transportation, transmission, or communication among the 
several States or between any State and any place outside thereof.''
    \8\ Western Union Telegraph Co. v. Lenroot, 323 U.S. 490.
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    (b) To ``deliver for shipment in commerce'' means to surrender the 
custody of goods to another under such circumstances that the person 
surrendering the goods knows or has reason to believe that the goods 
will later be shipped in commerce. \9\ Typical is the case of a Detroit 
manufacturer who delivers his goods in Detroit to a distributor who, as 
the manufacturer is well aware, will ship the goods into another State. 
A delivery for shipment in commerce may also be made where raw materials 
are delivered by their producer to a manufacturer in the same State who 
converts them into new products which are later shipped across State 
lines. If the producer in such case is aware or has reason to believe 
that the finished products will ultimately be sent into another State, 
his delivery of the raw materials to the manufacturer is a delivery for 
shipment in commerce. Another example is a paper box manufacturer who 
ships a carton of boxes to a fresh fruit or vegetable packing shed 
within the same State, with knowledge or reason to believe that the 
boxes will there be filled with fruits or vegetables and shipped outside 
the State. In such case the box manufacturer has delivered the boxes for 
shipment in commerce.
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    \9\ Tobin v. Grant, N. D. Calif., 79 Sup. 975 which was a suit for 
injunction by the Secretary of Labor against a manufacturer of books and 
book covers employing oppressive child labor. The facts showed that the 
manufactured articles sold by defendant to purchasers in the same State 
had an ultimate out-of-State destination which was manifest to 
defendant. The court construed the words ``deliver for shipment in 
commerce'' as sufficiently broad to cover this situation even though the 
purchasers acquired title to the goods.
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