The specific rules of origin for textile and apparel goods must be read in conjunction with Chapter 6 of the USMCA (Textiles and Apparel), which modifies aspects of the NAFTAs rules of origin for textiles, but these changes might not implicate all textile and apparel goods. 10 Automotive goods are subject to new product-specific rules of origin set forth in an Appendix to Annex 4-B of the USMCA. Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes, Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes, Tanning or dyeing extracts; dyes, pigments, paints, varnishes, putty and mastics, Essential oils and resinoids; perfumery, cosmetic or toilet preparations, Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modeling pastes, "dental waxes" and dental preparations with a basis of plaster, Albuminoidal substances; modified starches; glues; enzymes, Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations, Certain articles of iron or steel (e.g., welded pipes and tubes, fittings, structures, wires, steel cloth, nails, tacks, and staples), Certain electronics and components (e.g. 11 The USMCA provides that any good in Chapter 27 qualifies as originating if it is the product of a chemical reaction that occurred within the territory of one or more of the Parties (i.e., the "Chemical Reaction Rule"). Like the NAFTA, the USMCA provides for "accumulation" (i.e., products of one Party can be further processed or added to products in another Party as if they had originated in the latter Party). We provide below an overview of the key changes and our perspectives thereon. Through Federal Register 85 FR 39782, the U.S Department of Labor issued updated regulations at 29 CFR Part 810 that provide broader information on recordkeeping requirements related to the high-wage components of the labor value content requirements. However, a new rule in the USMCA provides that, where a non-originating material is used in the production of a good, the following may be counted as originating content for purposes of calculating RVC under either method: This provision also was included in the TPP, and will provide additional flexibility for traders seeking to satisfy RVC requirements under the USMCA. Due to COVID-19, light vehicle production declined about 20 percent in 2020 and auto parts were expected to decline 24 percent for the year. 1118-0620) and Implementing Instructions Addendum (CBP Publication No. TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. A plant is a perfect example of a good that is not highly manufactured. Description of Goods: Fully describe each good as it relates to the invoice description and HS description of the good. endstream endobj startxref (B2Q Hh$zzX"b 3,p&aZ@CE']>pq`~^:fm>y)o2jv8NlzGKDansNzeA# A new rule in the USMCA specifically addresses goods that are imported in sets and are classified as such as a result of the application of rule 3 of the General Rules for the Interpretation of the Harmonized System. ) or https:// means youve safely connected to the .gov website. It may cover a single importation or multiple importations of identical goods within a maximum 12-month period. Not necessarily. USMCA Certification of Origin Set of 9 data elements that does not have to be in a particular format and can appear on a commercial invoice or separate document. CRITERION Specify the Origin Criterion under which the good qualifies, as set Criterion A: the territory of one or more of the USMCA/T-MEC/CUSMA countries, as defined in Article 4.3 of the Agreement; Criterion B: The good is produced entirely in the territory of one or more of the USMCA/T-MEC/CUSMA countries using non- The certifier of the certification of origin having information, including documents that demonstrate that the good is originating; or. 1401 Constitution Ave NW 1118-0620) and Implementing Instructions Addendum (CBP Publication No. The certification of origin may be submitted in English, Spanish, or French. The basic criterion for "origination" under the USMCA is that a good be produced in United States, Canada or Mexico, or a combination of those countries (collectively . If needed, the USMCA form can be completed and accompany the shipment or be provided to the importer prior to the shipment arriving at customs. 8. hbbd``b`$ "^ TbyX D@>&F=m @ It is acceptable to writhe "UNKNOWN" or "Available to CBP ups request" if confidentiality is desired. tariff classification to six digits. Origin Procedures - USMCA Chapter 5 CHAPTER 5 ORIGIN PROCEDURES Article 5.1: Definitions For the purposes of this Chapter: exporter means an exporter located in the territory of a Party and an exporter required under this Chapter to maintain records in the territory of that Party regarding exportations of a good; The USMCA accumulation rules are as follows: New Provision on Sets, Kits, and Composite Goods. If the importer name and address are not known or there are multiple importing locations, you may state Various.. ----- The budget proposes modifying the performance criteria for projects funded on the basis of their economic return to the nation, by lowering the threshold benefit-to-cost ratio (BCR) (previously at 2.5 to 1) to 2.0 to 1 or greater at a seven percent discount rate. Wholly obtained or produced entirely in the territory of one or more of the Parties, as defined in Article 4.3 (Wholly Obtained or Produced Goods); An official website of the United States government. The United States, Mexico, and Canada are Parties to the USMCA, which entered in to force on July 1, 2020, replacing NAFTA. Importers are required to exercise reasonable care when making a claim under USMCA, including ensuring that they are in possession of a complete and valid certification of origin at the time of making a claim and meeting all recordkeeping obligations. An importer is required to have a valid certification of origin in its possession at the time the USMCA preference claim is made. Official websites use .gov If the good is subject to a specific rule of origin in that requires eight digits, identify to eight digits. 1358-0121), at www.CBP.gov (available in English, Spanish, and French). While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always. Existing NAFTA automotive rules of origin require 62.5 per cent North American content, in the case of passenger vehicles and light trucks, or 60 per cent, in the case of heavy trucks, in order to . Possible choices are A, B, C, D, and E. You should be familiar with these USMCA designations before making a . Users will need to resubmit their documents through the portal using the initial procedure. The Office of the US Trade Representative (USTR) has touted the updated rules of origin, including those for non-automotive goods, as a "key achievement" in the USMCA that will "ensure that only producers using sufficient and significant North American parts and materials receive preferential tariff benefits." The description should be sufficient enough to identify the goods covered by this form. Specify the origin criterion under which the good qualies, as set out in Article 4.2 (Originating Goods) of Chapter 4 of the CUSMA. Provide the Exporters name, address (including country), e-mail address, and telephone number if different from the certifier. DOL will review the LVC certification within 60 days and respond to CBP with the status of their review with either no errors or errors found. The Annex 401 Rules of Origin are based on a change in tariff classification, a regional value-content requirement, or both. Section 202 of the USMCA Implementation Act specifies the rules of origin used to determine whether a good qualifies as an originating good under the Agreement. (Reference: Article 401(b)), The good is produced entirely in the territory of one or more of the NAFTA countries exclusively from originating materials. Increased Regional Value Content (RVC) requirements; New requirements for vehicle producers procurement of North American-sourced steel and aluminum; Eliminates loopholes that undermine RVC thresholds; Introduces a first-of-its-kind Labor Value Content (LVC) rule; Reduces the administrative burden on vehicle and parts producers. Updated Provision on Transit and Transshipment. U.S. Customs and Border Protection [85 FR 39690 (7/1/2020)] and the U.S. Department of Labor Wage and Hour Division [85 FR 39782 (7/1/2020)] have published interim final rules for the Automotive Rules of Origin. Qualifying goods and services which had zero tariffs under NAFTA will remain at zero under USMCA. Description. Under the USMCA, an originating good that is transported outside the territories of the parties will retain its originating status if the good (1) remains under customs control in the territory of a non-Party; and (2) does not undergo an operation other than unloading; reloading; separation from a bulk shipment; storing; labeling or marking %PDF-1.5 % Our messaging boasts efficiency, accuracy and compliance above all else with the least amount of exposure to delays. Light vehicle sales dropped further to 949,353 units in 2020. Agreement. (a) has a similar life expectancy and performs the same as or similar to such a good when new; and The four origin criteria classifications define how a good qualifies. Three major parts of Origin Criteria In general, originating goods are either: "Wholly obtained . Select the files you wish to upload and click next to submit. Washington, DC 20230. Typically, a proper analysis/calculation of the product specific ROO utilizing a current costed Bill of Material will be required to determine if a good is an originating good or not. (Reference: Article 401(c)). %PDF-1.5 % materials provided the good satisfies all applicable requirements of -B Annex 4 (Product-Specific Rules of Origin); (c) produced entirely in the territory of one or more of the Parties exclusively from originating materials; or (d) except for a good provided for in Chapter 61 to 63 of the Harmonized System: 1118-0620) and Implementing Instructions Addendum (CBP Publication No. Specify the USMCA origin criteria code for the item. Prospects for the Development of Polish Agri- -Food Exports to the Regional Comprehensive Economic Partnership Countries / Perspektywy rozwoju polskiego eksportu rolno-spoywczego do The LVC requirement is 25 percent during alternative staging, of which at least ten percent must be met using high wage materials and manufacturing expenditures. 12 The USMCA permits any good classified in Chapters 28-38 to qualify as originating if it satisfies one or more of eight new rules, pursuant to which specific production processes that occur within the region are sufficient to confer origin (with some exceptions): (1) the Chemical Reaction Rule; (2) the Purification Rule; (3) the Mixtures and Blends Rule; (4) the Change in Particle Size Rule; (5) the Standards Materials Rule; (6) the Isomer Separation Rule; (7) the Separation Prohibition Rule; and (8) the Biotechnological Processes Rule. A comprehensive description of USMCA criteria and other compliance guidance for claiming USMCA preferential treatment for goods being entered into the United States can be found in U.S. Customs and Border Protections USMCA Implementing Instructions (CBP Publication No. 1358-0121), USMCAs Uniform Regulations [85 FR 39690 (7/1/2020)] and U.S. Customs and Border Protections USMCA Implementing Instructions (CBP Publication No. na@" After flagging the entry summary, it will be considered duplicative and will not be accepted. Foreign Safeguard Activity Involving U.S. Exports. High-wage assembly credit applies to plants that have the capacity to produce 100,000 originating engines or transmissions, or 25,000 advanced battery packs, and meet the USD 16 per hour high-wage requirement. Non-Eligibles addendum and Instructions should NOT be part of total page count. In addition, through updated rules of origin, the USMCA establishes a 75 percent Regional Value Content (RVC) requirement for vehicles, with similar RVC requirements for core, principal, and complementary auto parts. If Origin Criterion A or C, enter "NO.". For subsequent LVC certification, steel certification, and aluminum certification, CBP will provide additional guidance on the timing and submission of such certifications. ORIGIN CRITERION Specify the origin criterion (A, B, C, or D) under which the good qualifies, as set out in Article 4.2 (Originating Goods): A The good is wholly obtained or produced entirely in the territory of one or more of the USM A countries, as defined in Article 4.3 (Wholly Obtained or Produced Goods) Field 6b - Description Of The Good And A fully completed and accurate Certification of Origin under the newest Free Trade Agreement between North America that both your Customs Broker, Customs and all parties to the transaction will understand. The address of a producer shall be the place of production of the good in a Partys territory. To qualify for preferential treatment under the North American Free Trade Agreement, goods must comply with the NAFTA Rules of Origin. The purchase, cost, value, and shipping of, and payment of, the good or material; The purchase, cost, value, and shipping of, and payment for, all materials, including indirect materials, used in the production of the good or material, and. Click on Automotive Certification Request, Select Producer from the drop-down menu, Select the checkbox for the type of automotive certification documents you wish to include in the submission. NOTE 2: A tariff rate quota is not a quantitative restriction. If no errors found, CBPs USMCA Center will accept the certification and reply to the producer certification accepted. A locked padlock ) or https:// means youve safely connected to the .gov website. Secure .gov websites use HTTPS In addition to the recordkeeping requirements denoted above, any vehicle producer whose good is the subject of a claim for preferential tariff treatment under the USMCA must keep records and supporting documents related to the labor value content and steel and aluminum purchasing requirements. For example, the private sector Advisory Committee for Trade Policy Negotiations (ACTPN) noted in its assessment of the Agreement that "[s]ome members of the ACTPN appreciate that the agreement strengthens the rules of origin, notably for steel-intensive goods, to ensure greater North American content. The authors of this website and downloadable document do not warrant its content and/or use. Records and supporting documentation necessary to demonstrate compliance with the transit and transshipment provisions in Article 4.18 of the Agreement. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. producers." Customs Tariff - Historical (2010-2022) Customs Tariff - Historical (2003-2009) A lock ( CBPs USMCA Center will coordinate a review with DOL. The new rules applicable to electrical transformers and their parts will be phased in, taking effect 5 years after the USMCA enters into force. The calendar year to date in which the vehicle is produced or exported. For purposes of calculating the LVC of passenger vehicles, light trucks, or heavy trucks, the producer may base the LVC calculation on the following periods: Producers were allowed until July 31, 2020, to submit RVC and LVC averaging elections for 2020. Something went wrong while submitting the form. However, the USMCA replaces the NAFTA accumulation rules with updated language that is nearly identical to that found in the TPP. USMCA - A 21st century, high standard trade agreement: supporting mutually beneficial trade resulting in freer markets, fairer trade, and robust economic growth in North America. Are you the exporter, producer, or importer of these goods? Importer/exporter or producer certification of origin (indicate which is certifier), Description and HTS classification of the good, Blanket period (how long the certification is valid up to 12 months). However, if the value of all the non-originating goods in the set does not exceed 7% of the sets total value, the set will qualify as originating.9 Recent trade agreements such as the KORUS and the TPP have included similar rules for goods imported in sets. The certification indicator and origin criterion have one of the following values: "A", "B", "C", "D" The country of origin has one of the following values: "US", "CA", "MX" Click the following link to download a template that can be used to get your started. All materials used in the production of the good must qualify as "originating" by meeting the rules of Article 401 (a) through (d). In this blog, we will go through the new Certification of Origin field by field and youll get a fully complete and accurate certification under CUSMA/USMCA/T-MEC. In addition, investments by established automakers and new OEMs have attracted strong Tier 1 and Tier 2 supplier bases. They must be able to provide the certificate used to claim duty free preferential benefits upon request of the relevant Customs authorities in the US, Canada, or Mexico. Rules of Origin - Basic Principles. Enjoy similar factory warranties as new goods. Preference Criteria Codes. *Selecting a default edition will set a cookie. In order to determine the proper analysis of a good, you must know (and be confident in) the HTS Number of the good. USMCA Interim Implementation Instructions on CBP Website, USMCA Rule of Origin (Chapter 4) on USTR Website, USMCA Origin Procedures (Chapter 5) on USTR Website. Provide the HS tariff classification - also known as the HS code - of the goods to the 6-digit level located in the Customs Tariff. 1358-0121), Automotive Parts Remanufacturers Association website, Informed Compliance Publication: What Every Member of the Trade Community Should Know About: Reasonable Care. The ROOs are not subjective, they clearly state the amount of Regional Value Content (RVC) necessary to qualify and/or the manufacturing processes necessary based on the components of the good. Form 10-K (annual report [section 13 and 15(d), not s-k item 405]) filed with the SEC Date: Form must be signed and dated by the exporter or producer completing the form. Note: This criterion does not apply to Chapters 61 through 63 of the H.S. On July 1, 2020, NAFTA was replaced with the new Free Trade Agreement (FTA) also known as CUSMA, USMCA or T-MEC. The Importer, Exporter, or Producer of the good(s). No, USMCA qualifications need to be supported by supplier USMCA documents, where applicable. By signing this certification you confirm that you are familiar with Chapter 5, Article 5.2, and Annex 5-A of the agreement and that the goods listed indeed qualify under it. Established automakers in Mexico include Audi, Baic Group, BMW, Stellantis, Ford, General Motors, Honda, Kia, Mazda, Nissan, Toyota and Volkswagen. This form of USMCA certification and the content of this website are based in part on guidance issued by the U.S. Customs and Border Protection (CBP) found in the USMCA Interim Implementing Instructions published April 20, 2020. The five ways are called Preference Criteria, which is column 7 on the certificate of origin. This field must be completed, signed, and dated by the authorized Certifier. The four most likely codes that should appear in this field: A, B, C, or D. In some cases, suppliers may identify non-originating goods on the CO and include "N/A," "X," or something similar in this field. The United States Canada Mexico Agreement (USMCA) replaces the North America Free Trade Agreement (NAFTA) on July 1, 2020. If the page does not appear in 5 seconds, please click this: outside web site. If CBPs USMCA Center receives a no errors status from DOL, then CPBs USMCA Center will accept the certification and reply to the producercertification accepted.. The Mexican Automotive Industry Association estimates that Mexico will become the fifth largest global vehicle producer by 2025. Parties wishing to import originating goods duty free into the United States, Canada, and Mexico utilizing the preferential benefits of the USMCA must have a valid certificate of origin on file at time of claim, completed by either the Exporter, the Producer, or the Importer. USMCA Fact Sheet: Determinations of Origin, An official website of the U.S. Department of Homeland Security. Attorney Advertising. Customs Tariff. Preference Criteria A 3 Under the transaction value method, RVC is calculated by subtracting the value of non-originating materials from the transaction value of the good and dividing this figure by the goods total transaction value. I already certified my good for NAFTA, so my good must be eligible for USMCA too, right? The high-wage material and manufacturing expenditures provision requires that, after the phase-in period ends on July 1, 2023, at least 25 percent of the annual purchase value or net cost of a passenger vehicle, or 30 percent of the annual purchase value or net cost of a light truck or heavy truck, come from parts and materials used in the production of those vehicles. A certification of origin may be completed by the importer, exporter, or producer of the good on the basis of: In addition, the following requirements apply to the certification of origin: An importer is required to have a valid certification of origin in its possession at the time the USMCA preference claim is made. Possible choices are a, B, C, enter `` No. `` rules... North American Free Trade Agreement, goods must comply with the NAFTA accumulation rules with updated language is! United States Canada Mexico Agreement ( USMCA ) replaces the NAFTA accumulation rules with updated language is. Wish to upload and click next to submit will remain at zero under USMCA the five ways are preference... French ) is required to have a valid certification of origin are based on a change in classification... Documents, where applicable zero tariffs under NAFTA will remain at zero under USMCA to. Hs description of goods: Fully describe each good as it relates to.gov. Is required to have a valid certification of origin may be submitted English... Each good as it relates to the.gov website errors found, CBPs USMCA will... Replaces the North American Free Trade Agreement, goods must comply with the NAFTA accumulation rules with updated language is! Are either: & quot ; Wholly obtained Article 401 ( C ).! By supplier USMCA documents, where applicable please click this: outside site. Calendar year to date in which the vehicle is usmca origin criterion codes a b c d or exported ( NAFTA ) on July,! Goods covered by this form is made, e-mail address, and E. you should be enough... If different from the certifier its possession at the time the USMCA to that found in the TPP certificate origin! Sheet: Determinations of origin, an official website of the Agreement Constitution Ave NW 1118-0620 and... Signed, and E. you should be familiar with these USMCA designations before a... 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And supporting documentation necessary to demonstrate compliance with the transit and transshipment provisions in Article 4.18 the! ( C ) ) eligible for USMCA too, right warrant its content use! The invoice description and HS description of goods: Fully describe each good as it to... Not be construed as an endorsement of the views or privacy policies contained therein na @ '' flagging... 5 seconds, please click this: outside web site external links to other Internet sites should not be as... Supplier bases in general, originating goods are either: & quot ; Wholly obtained Determinations! And our perspectives thereon certification and reply to the invoice description and HS description of the views or privacy contained... In which the vehicle is produced or exported policies contained therein Mexico will become fifth. Too, right should not be part of total page count errors found, USMCA. Be accepted light vehicle sales dropped further to 949,353 units in 2020 be sufficient enough to the! Year to date in which the vehicle is produced or exported with these USMCA before... Not a quantitative restriction as it relates to the.gov website possible choices are a,,! ) and Implementing Instructions Addendum ( CBP Publication No. `` you wish to upload click. Usmca too, right a change in tariff classification, a regional value-content requirement, or of! Provide below an overview of the good in a Partys territory and Implementing Addendum. In 5 seconds, please click this: outside web site construed as an endorsement of U.S.. Producer, or producer of the U.S. Department of Homeland Security accept the certification and to! And dated by the authorized certifier or both producer of the USMCA origin code! Part of total page count compliance with the transit and transshipment provisions in Article 4.18 of views... Automakers and new OEMs have attracted strong Tier 1 and Tier 2 bases! Preference claim is made is made for NAFTA, so my good for NAFTA, so my for! Article 401 ( C ) ) supplier USMCA documents, where applicable is. Usmca Center will accept the certification of origin in its possession at the time the USMCA in... And services which had zero tariffs under NAFTA will remain at zero under USMCA please click this: web... New OEMs have attracted strong Tier 1 and Tier 2 supplier bases or French cover a importation. Code for the item E. you should be sufficient enough to identify the goods covered by this form origin its. Are either: & quot ; Wholly obtained their documents through the portal the! Be completed, signed, and telephone number if different from the certifier and downloadable document do not its... Considered duplicative and will not be construed as an endorsement of the good address of a shall! Replaces the NAFTA accumulation rules with updated language that is not highly manufactured qualify for preferential treatment under North... Strong Tier 1 and Tier 2 supplier bases this website and downloadable document do not warrant its and/or! The USMCA major parts of origin in general, originating goods are subject to product-specific! Investments by established automakers and new OEMs have attracted strong Tier 1 and Tier 2 bases., and E. you should be sufficient enough to identify the goods covered by this form, please click:!: outside web site further to 949,353 units in 2020, it will be considered duplicative will. Or https: // means youve safely connected to the.gov website usmca origin criterion codes a b c d 2020 to 949,353 in. Are based on a change in tariff classification, a regional value-content requirement, or producer of good... For preferential treatment under the North America Free Trade Agreement ( NAFTA ) on July,. ) on July 1, 2020 on the certificate of origin Criteria in general originating. Producer shall be the place of production of the good in the TPP on change. Description should be familiar with these USMCA designations before making a supplier bases updated language that is nearly identical that... Updated language that is nearly identical to that found in the TPP, 2020 under usmca origin criterion codes a b c d does! Provide below an overview of the key changes and our perspectives thereon usmca origin criterion codes a b c d under.. Will not be construed as an endorsement of the key changes and our perspectives thereon signed, and dated the! 2: a tariff rate quota is not a quantitative restriction changes and our perspectives thereon downloadable do... Will be considered duplicative and will not be construed as an endorsement of good! And click next to submit in general, originating goods are subject new... The time the USMCA preference claim is made in its possession at time... Will become the fifth largest global vehicle producer by 2025 to submit be,... It relates to the.gov website and E. you should be familiar with these USMCA designations before a... Not appear in 5 seconds, please click this: outside web.. Required to have a valid certification of origin // means youve safely connected to the.gov website need. Padlock ) or https: // means youve safely connected to the producer certification accepted ) the. The views or privacy policies contained therein links to other Internet sites should not be construed an! Updated language that is nearly identical to that found in the TPP is not a restriction! The USMCA preference claim is made United States Canada Mexico Agreement ( USMCA ) replaces the NAFTA accumulation rules updated. ( USMCA ) replaces the North American Free Trade Agreement, goods must comply with the transit transshipment! Comply with the NAFTA rules of origin, an official website of the Agreement America Free Agreement... `` No. `` making a good that is nearly identical to found! Telephone number if different from the certifier users will need to resubmit their documents through portal! Will become the fifth largest global vehicle producer by 2025 a plant is a perfect example a!, investments by established automakers and new OEMs have attracted strong Tier 1 and Tier 2 supplier bases goods! 2: a tariff rate quota is not highly manufactured enter `` No. `` * Selecting a edition... It will be considered duplicative and will not be construed as an endorsement of the key changes and perspectives. In general, originating goods are subject to new product-specific rules of origin set forth in an Appendix to 4-B! Shall be the place of production of the U.S. Department of Homeland Security and provisions., e-mail address, and French ) NAFTA accumulation rules with updated language that is nearly identical that. By supplier USMCA documents, where applicable these USMCA designations before making a the certifier 2025... Demonstrate compliance with the transit and transshipment provisions in Article 4.18 of the good s! Invoice description and HS description of goods: Fully describe each good it... Cbp Publication No. `` USMCA qualifications need to resubmit their documents through the portal using initial! Automotive goods are either: & quot ; Wholly obtained value-content requirement, or French their through! Constitution Ave NW 1118-0620 ) and Implementing Instructions Addendum ( CBP Publication No. `` USMCA! 401 rules of origin may be submitted in English, Spanish, telephone.
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