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What is the term “Discontinuance” and how is it used?

DISCONTINUANCE term Used
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What is the term “Discontinuance” and how is it used?

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For certain registrations and/or licenses, states may require what is called a Discontinuance Period. This period is a process by which companies inform state departments of their intent to discontinue shipment and sale of a product within the state. Basically, it is one step taken prior to cancellation of a product / license by the company, and it allows time for the remainder of the product to be cleared of the channels of trade. Many states, if applicable, use a standard of 2 years for a product to be discontinued before it may be canceled. However, this number varies widely between states and agencies.

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