(a) Retail packing. Since the exemption, as expressly stated in
section 13(b)(16), includes the transportation of the fruits or
vegetables only to places of first marketing or first processing,
packing or preparing for retail or further distribution beyond the place
of first processing or first marketing is not exempt as ``preparation
for transportation.'' (Schultz v. Durrence (D. Ga.), 19 WH Cases 747, 63
CCH Lab. Cas. secs. 32, 387.)
(b) Preparation for market. No exemption is provided under section
13(b)(16) for operations performed on the farm in preparation for market
(such as ripening, cleaning, grading, or sorting) rather than in
preparation for the transportation described in the section. Exemption,
if any, for these activities should be considered under sections
13(a)(6) and 13(b)(12). (See subparts D and E of this part 780.)
(c) Processing or canning. Processing is not exempt preparation for
transportation. Thus, the canning of fruits or vegetables is not under
section 13(b)(16).
