(a) General. A coal dealer's establishment may qualify as an exempt
retail or service establishment under section 13(a)(2) of the Act if it
meets all the requirements of that exemption. In determining for
purposes of the 13(a)(2) exemption, whether 75 percent of the
establishment's sales are recognized as retail in the particular
industry, sales of coal to the consumer from a dealer's yard storage,
where bulk is broken, are recognized as retail if they meet the
requirements for such classification as previously explained in this
subpart. It has been determined that the following sales do not meet
such requirements and are not so recognized even if made from a dealer's
yard storage:
(1) Sales where the delivery is made by railroad car or cargo
vessel.
(2) Sales in a carload quantity or more for continuous delivery by
truck from a dock, mine or public railroad facility.
(3) Sales of coal at a wholesale price. A wholesale price is a price
comparable to or lower than the establishment's price in sales described
in paragraphs (a)(1) and (2) of this section or in sales to dealers (but
not peddlers) for resale. If the establishment makes no such sales, the
wholesale price is the price comparable to or lower than the price
prevailing in the immediate area in sales described in paragraphs (a)(1)
and (2) of this section or in sales to dealers (but not peddlers) for
resale.
(4) Sales of coal for use in the production of a specific product to
be sold in which coal is an essential ingredient or the principal raw
material, such as sales of coal for the production of coke, coal gas,
coal tar, or electricity.
(b) ``Sales for resale.'' In determining for purposes of the
13(a)(2) exemption, whether 75 percent of the establishment's sales are
not made for resale, ``sales for resale'' will include sales of coal to
other dealers, to peddlers, and sales of coal for use in the production
of a specific product to be sold, in which coal is an essential
ingredient or the principal raw material, such as sales of coal for the
production of coke, coal gas, coal tar, or electricity. This is
distinguished from sales of coal for use in the general manufacturing or
industrial process such as the use in laundries, bakeries, nurseries,
canneries, etc., or for space heating, which are not sales made for
resale.
