This article outlines removing inventory from stock due to damage, unsellability, or business requirements. This process is distinct from RTS returns for undelivered packages. Removing stock involves specific customs, regulatory, and financial implications that vary by product category and warehouse type; users should consult their own counsel where indicated.
What triggers a disposal request
Trigger 1: Damaged or DOA inventory
Shipments are cross-referenced against your packing list; discrepancies or damage are flagged immediately. For DOA items, Portless documents the issue with photos, generates a work order, and coordinates with your team via Customer Success to determine if products can be restocked or must be disposed of.
Trigger 2: Expired inventory
For time-sensitive products, Portless provides manual notifications through the TMS expiry registration feature. Expired items are moved to a 'defective goods' warehouse. Contact your Account Manager to verify how Portless tracks expiry for your SKUs. [LEGAL/COMPLIANCE REVIEW RECOMMENDED: Ensure standard disposal workflows satisfy your specific regulatory obligations.]
Trigger 3: Merchant-requested disposal
You may request disposal of any inventory, including slow-moving, discontinued, or end-of-campaign stock, by emailing [email protected] with your SKU list and quantities.
How to submit a disposal request
Email [email protected] with the subject line referencing your merchant name and "SKUs to be disposed of" or similar.
Include for each SKU: the SKU identifier, the quantity to dispose, and whether you need any units preserved for outstanding orders.
If your inventory spans both bonded and non-bonded warehouses, note this in your request. Bonded disposal has a different timeline. See the bonded section below.
Portless will confirm receipt and provide an update within 24–48 hours (based on observed ticket handling time).
Once disposal is complete, Portless will confirm which SKUs were disposed and provide a remaining inventory count.
There is no minimum or maximum quantity limit on disposal requests. The warehouse typically destroys product 72 hours after a request is submitted. Requests can be cancelled any time before that 72-hour window closes.
Disposal methods
Portless’s primary disposal method is physical destruction. Alternatives like donation or liquidation are not offered by Portless and must be coordinated through third-party providers.
Method | Status | Notes |
Physical destruction / standard disposal | Evidenced | Default for RTS returns (free of charge, per published HCA). Note that the service is not fee-free for merchant-requested disposal. |
Return to merchant instead of disposal | Supported (with cost) | Returning inventory to China/Vietnam requires a retrieval fee that applies to the entire batch, not just the individual items. This can be prohibitively expensive at scale. See RTS article for details. Offboarding merchants can request shipment to a specified address. |
Donation | Available (merchant-arranged) | Note that the service is not fee-free for merchant-requested disposal. |
Liquidation/resale | Available (merchant-arranged) | Merchant supplies receiving-party info; Portless doesn't assist with sale/placement. |
Recycling | Available (merchant-arranged) | Merchant supplies receiving-party info; Portless doesn't assist with sale/placement. |
Return to manufacturer | Available (merchant-arranged) | Merchant supplies receiving-party info; Portless doesn't assist with sale/placement. |
Proof of destruction and documentation
Standard disposal confirmation is limited to a completion email detailing disposed SKUs and remaining inventory. Official destruction certification, including photos and method details, is available for an additional fee.
[LEGAL/COMPLIANCE REVIEW RECOMMENDED] A standard completion email may not satisfy regulatory requirements for proof of destruction, especially for regulated categories like consumables or medical devices. Verify your specific documentation obligations with counsel before relying on Portless's standard confirmation.
Recall-specific workflow
Portless does not have a formal recall-specific workflow, such as the ability to isolate units by lot or batch code. If a recall is required, contact your Customer Success Manager immediately and email [email protected] (marked urgent). Destruction requests can be canceled via Jira within 72 hours of submission.
[LEGAL/COMPLIANCE REVIEW RECOMMENDED] Portless's operational response does not replace your legal recall obligations. Consult counsel immediately and do not rely on internal timelines for regulatory compliance.
Bonded warehouse disposal: additional considerations
Bonded inventory is processed separately from non-bonded stock and is subject to unique scheduling constraints, including customs and regional holiday requirements.
Customs event/fees: Portless's partner bonded warehouses charge based on the number of boxes destroyed, inclusive of transport, customs, and tax fees.
Who handles customs documentation: A third-party warehouse handles it (not Portless directly, not the merchant).
Duty drawback: Not available. Portless confirmed merchants are unable to apply for customs duty refunds/credits on destroyed bonded inventory.
Unlike non-bonded inventory, which can be shipped overseas directly, bonded inventory (for disposal or return) must route through Hong Kong, prohibiting direct transit to mainland China.
[LEGAL/COMPLIANCE REVIEW RECOMMENDED] Bonded disposal processes, timelines, and costs differ significantly from non-bonded inventory due to complex customs regulations. Consult counsel to verify your specific obligations and duty treatment before proceeding.
Fees and cost model
Product scrapping fees are $700 USD for bonded warehouse inventory and $500 USD for all other products.
Fee types:
Disposal request fee
Per-unit disposal fee
Bonded retrieval/return fee
RTS destruction fee
Proof of destruction fee
Storage during disposal hold
Before requesting disposal
Before submitting a disposal request, confirm the following:
Is return to merchant a better option? For valuable inventory, the cost of returning it vs. disposing of it may favor return. But note that batch-level retrieval fees for bonded inventory can be substantial. Evaluate whether the goods' value justifies the retrieval cost. Bonded goods can only be shipped to Hong Kong first, not directly to mainland China.
For bonded inventory: Confirm with your own counsel whether duty drawback is available for destroyed bonded goods in your jurisdiction. Destroying bonded inventory without first confirming duty treatment may forfeit a refund you were entitled to.
Document the reason for disposal for your own accounting records. Inventory write-offs have accounting treatment implications; your finance team may need a formal record of the disposal reason and date.
For regulated product categories: Confirm the documentation your legal obligation requires before submitting the disposal request, so you can specify what you need from Portless up front.
Verify remaining quantities: Cross-reference your inventory counts against outstanding orders to ensure necessary stock is preserved before submitting your request.
Merchant FAQs
Can I recover inventory once disposal is requested? No. Once complete, disposal cannot be reversed. You may cancel a request within the 72-hour processing window, but once executed, the inventory is gone.
Does Portless dispose of stock without authorization? No. Portless only acts upon explicit merchant instructions. For inactive accounts, warehouse teams verify with sales management before taking any action.
What documentation is provided for destruction? A completion email is the standard proof provided. Formal destruction certificates are available for an additional fee based on the product and quantity.
How are recalls handled? Contact your Customer Success Manager and email [email protected] urgently. The standard 72-hour window applies; requests canceled before destruction can be restored to shelves, typically within 48 hours.
Is there a minimum quantity for disposal? No minimum quantity is currently documented for disposal requests.
Can I dispose of only a portion of my SKU stock? Yes. You can request to dispose of specific quantities while retaining the remainder for outstanding orders. Ensure these quantities are clearly defined in your email.
What are the considerations for bonded inventory? Bonded disposal involves complex customs regulations and unique timelines. Review the bonded section above and consult legal counsel regarding your specific tax and duty obligations.
Notes/edge cases
CNY and peak season: Bonded disposal can be scheduled around major Chinese holidays. Coordinate with your Customer Success Manager to confirm execution dates for time-sensitive needs, such as accounting deadlines or campaign clearances.
Offboarding merchants: If you are closing your Portless account, the offboarding SOP covers shipment of remaining inventory to a merchant-specified address. Disposal can be requested via the same [email protected] channel rather than returning inventory if preferred.
High-value inventory: No special verification or additional approval process for high-value disposal.
Hazardous materials: Merchants must inform Portless in advance; a qualified waste-disposal company is engaged, which adds cost.
Packaging materials vs. product units: The same disposal process applies to custom packaging stock.