(a) Goods which are purchased or received by the enterprise within
the State will not be considered goods which have ``moved across State
lines'' if the goods, although they came from outside the State, had
been processed or manufactured so as to have lost their identity as out-
of-State goods before they are purchased or received by the enterprise.
This assumes, of course, that the goods so manufactured or processed do
not move across State lines before they are sold by the enterprise. Thus
where an enterprise buys bread baked within the State which does not
move across State lines before it is resold by the enterprise, the bread
is not ``goods, which have moved across State lines'' even if the flour
and other ingredients came from outside the State. The same conclusion
will follow, under the same circumstances, where clothing is
manufactured from out-of-State fabrics.
(b) In those cases where goods are composed in part of goods which
have, and in part of goods which have not, moved across State lines, the
entire product will be considered as goods which have moved across State
lines, if, as a practical matter, it substantially consists of goods
which are identifiable as out-of-State goods. Whether goods have been so
changed as to have lost their out-of-State identity is question which
will depend upon all the facts in a particular case.
