When does a bonded warehouse product get liquidated?

A bonded warehouse is a secure storage facility where goods can be stored without payment of duties until they are sold or re-exported. The liquidation of products in a bonded warehouse refers to the process of selling or disposing of goods that have not moved or withdrawn from the facility within a specified timeframe.

The time period for liquidation is determined by the last withdrawal of the goods. Hence, if there is no movement of the products for a year from the date of the last withdrawal, they are considered for liquidation. This approach ensures that warehouse operators manage inventory effectively by clearing out items that have not been active in the supply chain, further allowing for better use of space and resources.

Other timeframes proposed in the incorrect options do not align with the established protocols regarding the management and liquidation of goods in bonded warehouses. These alternatives either focus on arbitrary dates without considering actual activity (such as specific durations from the date of entry or storage) or set timeframes that do not reflect the reality of how goods are monitored and processed within these facilities.