[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR570.106]

[Page 285-286]
 
                             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 
``ship or deliver for shipment in commerce'' the goods referred to 
therein. A producer, manufacturer, or dealer may ``ship'' 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 ``ships'' his bread in commerce whether he carries it in his own 
truck across State lines or sends it by 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

[[Page 286]]

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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