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Samsung gets special permit to transport Galaxy Note 7 returns

By Cris Valencia | Oct 07, 2016 08:50 AM EDT
A Samsung Galaxy Note 7 is held up after it was returned to a Best Buy on September 15, 2016 in Orem, Utah.
(Photo : Getty Images/George Frey) A Samsung Galaxy Note 7 is held up after it was returned to a Best Buy on September 15, 2016 in Orem, Utah. The Consumer Safety Commission announced today a safety recall on Samsung's new Galaxy Note 7 smartphone after users reported that some of the devices caught fire when charging.

Samsung received a special permit from the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration to transport Galaxy Note 7 returns.

Around 137,000 units of unopened Samsung Galaxy Note 7 from retail locations are expected to be shipped back to US, Fierce Wireless reported. Samsung's recall efforts have been marred by logistical difficulties. The company had to apply for several permits because the company cannot ship the devices via airplane.

Samsung reportedly gained two permits to transport the potentially hazardous devices. One permit reportedly provides a quantity-limited thermally insulated outer package designed to contain fire or smoke.

Post offices are reportedly being extra careful in accepting parcels that contain any Samsung handset. Some even went as far as reportedly refusing packages containing the Galaxy Note 7, including the UK Royal Mail, Sam Mobile reported.

For its part, Samsung declined to provide details on how they plan to handle the transportation of returned Galaxy Note 7 units. Carriers such as Verizon, Sprint and Best Buy declined to give comment on the issue.

On September 1 this year, shipments of Galaxy Note 7 units have been halted due to increasing reports of battery explosion. On September 15, a recall has been officially announced. Since the news came out, Samsung reportedly lost almost $7 billion from its market cap.

Analysts estimate that Samsung could lose a $5 billion yield after accounting for the cost of recalls. Over 60 percent of Galaxy Note 7 units in the U.S. and South Korea have been exchanged via the replacement program of the company. Roughly 90 percent of the users chose to replace their handsets.

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