Washington Administrative Code › Title 296 - Labor and Industries, Department of › Chapter 296-17A - Classifications for Washington workers' compensation insurance › Section 296-17A-6407 - Classification 6407

Current through Register Vol. 24-14, July 15, 2024
6407-00 Wholesale stores, N.O.C. - Including combined
				wholesale and retail store operations
Applies to establishments engaged in the wholesale, or combined
				wholesale and retail sales of merchandise that is not covered by another
				classification (N.O.C.). Establishments subject to classification 6407 usually
				own the merchandise they sell, but may also be marketing goods on consignment,
				in which case classification 6407 still applies because the exposure and
				processes are the same. This classification is primarily the wholesale
				counterpart (supplier) for establishments assigned to retail store
				classification 6305, 6406, and 6411.
Classification 6407 also applies to retail stores with high
				volume warehouse and distribution facilities without the normal exposures
				associated with a retail store.
Work contemplated by classification 6407 includes, but is not
				limited to, maintaining warehouse inventories, sorting and grading goods, and
				breaking down bulk quantities to repackage into smaller lots. Equipment
				typically used includes, but is not limited to:
* Balers to bind merchandise into bundles;
* Strapping equipment to secure palletized goods;
* Forklifts; and
* Hand tools.
This classification excludes:
* Delivery which is to be reported separately in classification
				1101;
* Businesses that meet the criteria for the definition of
				fulfillment centers in classification 2103 are classified in 2103;
* Large high volume sales operations where retail customers
				select and carry out the goods they purchase, which are reported in the
				classification applicable to the merchandise sold.
Special notes
:
When assigning
				classification 6407, care must be exercised to look beyond the words
				"wholesale" or "retail." The manufacturer of a product will also "wholesale"
				their merchandise (or a combination of their own merchandise and finished
				products bought from other manufacturers) to a customer. These sales are an
				integral part of the manufacturing/marketing process and is an inclusion in the
				manufacturing classification. Establishments that buy goods, such as clothing
				or cloth goods, in wholesale quantities, then screen print or embroider them
				for resale are performing manufacturing operations and are to be reported
				separately in the appropriate manufacturing classification.
Warehouse operations in classification 2102, with the exception
				of grocery dealers, do not own the product they are warehousing and are not in
				the business of selling the goods they store. Businesses in classification 6407
				may operate a warehouse, but only as an integral part of the
				wholesaling/distribution process, which is included in classification
				6407.
07-01-014, recodified as § 296-17A-6407, filed 12/8/06,
				  effective 12/8/06. Statutory Authority:
				  RCW
				   51.16.035. 99-18-068, § 296-17-711,
				  filed 8/31/99, effective 10/1/99; 98-18-042, § 296-17-711, filed 8/28/98,
				  effective 10/1/98; 96-12-039, § 296-17-711, filed 5/31/96, effective
				  7/1/96; 85-24-032 (Order 85-33), § 296-17-711, filed 11/27/85, effective
				  1/1/86; 85-06-026 (Order 85-7), § 296-17-711, filed 2/28/85, effective
				  4/1/85; 83-24-017 (Order 83-36), § 296-17-711, filed 11/30/83, effective
				  1/1/84; Order 73-22, § 296-17-711, filed 11/9/73, effective
				  1/1/74.