What does Interstate Commerce mean? Read on to discover the definition & meaning of the term Interstate Commerce - to help you better understand the language used in insurance policies.
As defined by federal motor carrier regulations, the term refers to trade, traffic, or transportation in the United States that is between a place in a state and a place outside of such state or is between two places in a state through another state. An interstate shipment begins when it has started its course to another state or has been delivered to a carrier for such transportation and ends when it has reached the ultimate destination originally intended by the party that controls the movement. All transportation from beginning to end is transportation in interstate commerce. The details of the interstate movement of goods (e.g., the number of carriers involved in the movement, billing arrangements between the carriers, whether there is actual physical continuity of the movement) are irrelevant in as far as the determination that the movement is interstate commerce.
We hope the you have a better understanding of the meaning of Interstate Commerce.