What is the definition of “retail facilities” that are exempted from coverage by the PSM standard?
Reply: With respect to enforcement of the PSM standard, a retail facility means an establishment that would otherwise be subject to the PSM standard at which more than half of the income is obtained from direct sale to end users. Please be advised that the “retail facilities” exception is intended to apply to an establishment in the retail trade as delineated in the Standard Industrial Classification (SIC) Manual. With exceptions, retail trade establishments sell merchandise to the general public for personal or household consumption. On the other hand, wholesale trade establishments may sell similar merchandise for exclusive use by industry. A worksite where perforation guns are manufactured and from which they are sold primarily for use by the oil and gas well drilling, servicing and production industry would be considered a wholesale trade establishment. The preamble to the PSM Final Rule (Starting with the third paragraph from the bottom of the middle column on page 6369) provides
