Replacement of defective exports and imports permitted with conditions, subject to GR Waiver and customs re-import/re-export rules. Permits EOU/EPZ/STP units to make free replacement of exported goods found defective, damaged or unfit prior to physical re-import subject to GR Waiver, with such goods to be subsequently brought back; allows re-import where foreign buyers fail to take delivery. Allows receipt of free replacement for imported defective goods prior to re-export; if supplier does not insist on re-export, goods may be destroyed with customs permission or cleared into the DTA on payment of full customs duty.