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The term "interstate commerce", as used in this title, includes commerce between one State, Territory, Possession, or the District of Columbia and another State, Territory, Possession, or the District of Columbia. Interstate commerce is the general term for transacting or transportation of products, services, or money across state borders."Interstate commerce" means trade, traffic, or transportation in the United States —. In 1887 Congress passed the Interstate Commerce Act, making the railroads the first industry subject to federal regulation. "Commerce" meant the activity of selling, trading, exchanging, and transporting goods and people, as distinct from producing the things being moved. The Supreme Court refined the definition of "commerce" to include all phases of business (including navigation) and not just business traffic. C3.4 Meaning of Regulate in the Commerce Clause. ArtI. Interstate commerce includes the movement of goods, services, money and individuals between states. These goods can be legal or illegal. For purposes of subchapter B, this definition includes the terms employer and exempt motor carrier.