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Homes and shops were evacuated after a replica grenade was found, it has been confirmed.
Bomb disposal teams and police descended on King Street, Margate, following the discovery.
Homes were evacuated and businesses were told to shut – which included nearby Morrisons – as a cordon was enforced in the area.
A bomb disposal team was called in to deal with the device on Tuesday afternoon but the precise nature of the incident had not been revealed until today.
Police have confirmed: "The item was a replica grenade, which was determined to be inert and safe and was removed by the Ministry of Defence team."
A man was arrested on suspicion of drugs offences on Tuesday and the cordon was removed just before 8.30pm.
He was still in custody yesterday but police have now confirmed he has been released while officers continue to investigate.
A police spokesman said: "While carrying out inquiries on the afternoon of Tuesday, September 21, Kent Police officers located an item suspected to be a possible explosive at an address in King Street, Margate.
"A cordon was put in place to ensure the scene was safe and a number of properties were evacuated.
"A Ministry of Defence bomb disposal team attended and deemed the item safe. They have taken it away for disposal.
"The cordon was lifted shortly before 8.30pm.
"Officers would like to thank residents, businesses and the community for their patience and consideration while the matter was dealt with."
The 11 EOD and Search Regiment Royal Logistic Corps was also called to the scene and the item was safely removed by the bomb disposal experts.
An Army spokesperson said: "We can confirm an Army Explosive Ordnance Disposal team was called out to King Street, Margate at the request of local police."