Law Offices of Countryman & McDaniel
THE CARGO L
Air & Ocean Logistics - Customs Broker News
Good Friday Morning from our Observation Deck......overlooking the
officially designated "
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Here is what happened in our industry during the Month of May 2014 and as we celebrated National Maritime Day & World Trade Week.
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Contribute your knowledge, stories & company information.......by e-mail to The Cargo Letter. We strive to bring you useful information which is timely & topical. Be sure to visit our website.......http://cargolaw.
Archive of The Cargo Letter ....... www.cargolaw.com/cl-archives.
Michael S. McDaniel, Editor, Countryman & McDaniel, forwarder/broker, hull & machinery attorneys at LAX.
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs ______________
3. Freight Forwarder World Air Briefs ____________
4. FF World Ocean Briefs _____________________
**Back By Popular Demand**
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports of Call" _________
OUR "E" Section: The Forwarder/Broker World***
OUR "A" Section: Trade, Financial & Inland News***
1. Freight Forwarder Trade Briefs _____________
***Are Your A Safe Trader? .......as on
Learn More About The New Agreement
***Sino-Putin Dependency Is Created ...... as
***Overcoming Discriminatory Trade Tariffs ...... as the
Read The WTO Analysis
***Sugar Rush ....... as the U.S. Dept. of Commerce has been given a green light to proceed with its investigations of Mexican sugar being allegedly dumped on the U.S. market, along with claims that the latter's producers are benefiting from unfair subsidies. The investigations come in response to petitions filed earlier this year by the American Sugar Alliance, a U.S.-based coalition of sugarcane and sugar beet producers. The group complained that Mexican sugar producers are benefitting from allegedly unfair subsidies, and the product is being sold below its normal value on the
***Rebar Dump Duty Set ...... as the U.S. Commerce Dept. has set preliminary duties on imports of steel rebar from
***Finally A Unamimous Agreement On Something ......as for the first time in their 18-year history, the World Trade Organization member countries agreed on a multilateral pact. They agreed all members should modernize and develop a more professional process for inbound products. The WTO's new pact encourages all member countries to modernize–to eliminate red tape and the corruption that seems to accompany it. By creating a more transparent environment for international trade, the WTO's action should make it easier for companies to expand into developing nations. Modernizing has other added benefits, as well. By improving processes, General Pascal Lamy has estimated that developed countries can reduce costs by 10% on inbound processes; developing nations are expected to save 50%. All of this is good news for global trade.
World Trade Organization
World Corruption Perception Index 3013 By Nation
***Anti-Chinese Riots Disrupt Vietnam Trade ...... as Hong Kong's Yue Yuen Industrial Holdings, maker of Nike and Adidas shoes, has suspended production in Vietnam in the wake of anti-Chinese riots protesting oil drilling in South China Sea waters claimed by Hanoi. Some 20,000 were said to be on the rampage, looting, torching factories and storming industrial parks, in protest over oil drilling as Chinese warships and Vietnamese coast guard cutters scrimmaged with water cannon and ramming at sea.
***Taiwan Soars, But Carefully Points Out It Is Not China .......as exports, including those of Taiwanese factories overseas, were up 8.9% in April - their fastest growth since January 2013 - driven by strong demand for mobile devices, and beating earlier forecasts of 5%. The outlook for the next quarter is semiconductor and electronics suppliers expect to reap benefits from new releases of smartphones and tablets, while subdued demand from
***Bringing Your Goods Back Home ...... as the
What Is A Carnet?
Learn More About The Carnet ATA System
***BIG CHANGE: Pricing Motor Freight Like Air Cargo .....as
***What The Heck Is A 4PL? ..... as the concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (now Accenture) as an integrator that assembles the resources, planning capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.
***DHL Sees The Future ...... as online retail dominance in the next decade will be measured by the success of logistics in providing competitive advantages, such as deliveries within a few hours on the day of ordering, flexible receiving and return times, according to Deutsche Post DHL latest "Global E-Tailing 2025" study. The study, supported by trend research institutions looks at cross-border online commerce and its implications for the logistics industry through four scenarios. The different future projections are based on a detailed analysis of the most influential factors - from energy and raw material prices to technological, political and social factors to retail and consumption patterns. The scenarios also outline possible effects of changes to society's value system by 2025. The research examined selected developed and emerging markets around the world. Trend scouts also studied purchasing and logistics trends in 12 international metropolises - among them
Read The New Report: "Global E-Tailing 2025"
***Silk Road On Iron Rail ....... as Chengdu-Europe freight railway service running from Chengdu to Poland has launched 45 runs since it commenced operation in April 27 last year, carrying a total of 3,704 TEU, weighing 82.92 million tons, reports Xinhua. This means the Chengdu-Europe Railway has become one of the major transport route for Sino-European trade from central and western
***Positive Development ...... as an agreement has been reached between the seven Class 1 freight railroads and the Federal Communications Commission (FCC) regarding the installation of positive train control (PTC) antennas, but the Association of American Railroads (AAR) says the delay in developing the process has severely impeded PTC implementation and a fully operable system by the 2015 deadline is not possible. The agreement between the FCC and the Class 1s addresses the railroads' construction of the nearly 11,000 PTC poles before May 2013 that may not have undergone the statutorily required environmental and historic preservation review and allows the railroads to immediately start using those poles for important testing and other preparatory activities and for the ultimate provision of PTC. American Indian tribes will get US$10M to mitigate cultural losses from a US$13Bn federally mandated rail crash avoidance scheme involving the erection of the radio towers that might infringe on sacred tribal lands.
Read More About Positive Train Control
***Map-21 Legal Actions Seen ....... as since the new law took effect in late 2013, both private and agency lawsuits have commenced against alleged violators. Companies engaging in even one instance of brokering freight to another motor carrier, by definition, you are a freight broker. This means you need to be properly licensed with Freight Broker authority and procure the US$75,000 bond or risk fines and penalties (up to US$10,000 per offense). Over and above the FMCSA requirements, we have seen several large, national shippers, who utilize the services of motor carriers like you, require the motor carriers to meet the new broker requirements if the motor carrier might be involved in brokering. Consult the Countryman & McDaniel lawyers for further information.
***When In Doubt, Fine The Boss ...... as the Federal Motor Carrier Safety Administration (FMCSA) wants to fine transport executives US$11,000 each time they induce drivers to disobey new hours of work rules and other regulations. The fines would apply to shippers, intermediaries, receivers or motor carriers who threaten drivers with unemployment if provisions laid out in the Federal Motor Carriers Safety Regulations (FMCSR) or the Hazardous Materials Regulations aren't disobeyed, American Shipper reports. In its posting in the Federal Register, the FMCSA wrote that the rule would provide a way for drivers to report coercion, detail how the agency would investigate such claims, and list penalties against guilty parties.
***Steady Inland Increase ....... as truck tonnage saw gains for the third straight month in April, according to data issued by the American Trucking Associations (ATA). Seasonally-adjusted (SA) truck tonnage in April was up 1.5%, following a 0.6% gain in March, with the index at 129.1 (2000=100). This is 1.9% below the all-time SA high of 131.0 recorded last November. On an annual basis, the April SA was up 4.8%, marking its biggest annual gains for any month in 2014. And on a year-to-date basis SA tonnage is up 2.9% through April.
***New EU Waste Transport Rules ....... as the Council of the European Union adopted an amendment to regulations concerning the shipment of waste within the EU and between the EU and third party countries. The new regulations strengthen measures to ensure more uniform implementation of the waste shipment regulation throughout the European Union. The regulations will enter into force twenty days after publication in the EU Official Journal and will apply after
Read More About The New Rules
***New EU Rules of The Road ...... as the European Conference of Ministers of Transport (ECMT) multilateral quota user guide has been jointly released by the International Road Transport Union (IRU) and the International Transport Forum at the OECD. The guide lists all documents required on board a vehicle performing transport operations under an ECMT multilateral licence. The new edition of the user guide reflects the introduction of the EURO VI Lorries into the system from
Read & Download The New Guide
***New Perishable Brand ..... as C.H. Robinson has created a new global business brand named Robinson Fresh that brings its logistics and technology solutions around produce under one umbrella. The global giant was originally founded as a wholesale produce brokerage house in 1905.
***FedEx Opens Package Lab ...... as its TechConnect division has opened a 30,000-square-foot package laboratory to provide testing and design services. The laboratory can simulate any part of the FedEx network, from desert climates to the rainforest to the
***Human Trafficing ...... as May includes National Bike to Work Day, the exact center of May's National Bike Month. From coast-to-coast, cycling enthusiasts are expected to take part in a wide range of activities sponsored by environmental and civic groups, health organizations, and police departments. Across the
**A.P. Moller-Maersk (Danish conglomerate that owns Maersk Line) UP with profit of US$1.2Bn fort 1st quarter of 2014, compared with US$790M it earned in same period 2013.
**APM Terminals (Maersk's standalone port operator) UP with a 29% year-on-year 1st quarter net profit increase to US$215M, drawn on revenues of US$1.1Bn, up 5%.
**Deutsche Post/DHL. UP with a 2.3% first quarter operating profit increase to US$995.38M.
**Hanjin Shipping. UP with a 37.2% year-on-year reduction in first quarter operating losses to US$58.1M.
**Neptune Orient Lines (NOL) (owns APL container shipping line). UP with a first quarter net loss of US$98M compared to a $76M year-on-year profit
**XPO Logistics. UP with 1st quarter revenue of US$282.4, up 147.7% annually, while net revenue saw a 259.1% increase to $58.4M..
OUR "B" Section: FF World Air News***
3. Freight Forwarder World Air Briefs __________
***Global Air Freight Rise ........ as volumes rose 3.2% year on year in the first quarter driven by improvements in world trade and economic recovery, says the Airports Council International (ACI). European airports exhibited the most significant air cargo performance in March, with total freight traffic up 6%, with the region's domestic freight growing 8.6% and international cargo rising by 5.9%. Strong overall air cargo growth was also seen in the Asia-Pacific region, up 5.2%, mainly due to strong first-quarter freight traffic performance at Shanghai Pudong International Airport, up 6.9%; Incheon International Airport, up 6.1%; and Hong Kong International Airport, up 5.6%. Total air freight tonnage in the
***Sky To Sea Trend Seen ...... as air freight shifting to sea freight occurs because of the lengthening of product life so it matters less if a new gadget reaches retail shelves rapidly, said
***MH370 Lessons ...... as in the wake of the disappearance of a Malaysian Airlines jet over the
Ministry of Transport Malaysia -- Official Preliminary Report For Loss of Flight MH 370
***New Leg Record Set ..... as Qantas Airways announced that it will operate its non-stop Dallas/Fort Worth-Sydney flight with an Airbus A380 aircraft this fall. The 8,580-mile (13,800-kilometer) voyage became the longest scheduled commercial flight in the world by distance, after Singapore Airlines discontinued non-stop service between
***Lightening The Load, Not The Cargo ...... as Lufthansa Cargo is switching to lightweight LD3 containers to save fuel and reduce carbon dioxide emissions to reach its goal of cutting CO2 by one quarter over 15 years to 2020. The LD3 air containers are made of composite materials that make them 14 kiloss lighter, a weight saving of seven million kilos and an annual 2,000-ton reduction in fuel consumption with the movement of 500,000 containers. "The new, lighter containers are still extremely robust and strong in spite of being mostly plastic," said board member operations at Lufthansa Cargo Karl-Rudolf Rupprecht, reported
***Good Bye ....... as the end of an era came at American Airlines as the wide-body jets serving its flagship transcon routes made their last flights, replaced by smaller, narrow-body Airbus A321Ts. The airline's last two Boeing 767-200s, planes that had been deployed on the highly-competitive routes linking
***All The Buzz ...... as China Southern Airlines and Air New
***Volumes >>> American Airlines Group's cargo ton miles (CTMs) amounted to 197.2 million, an increase of 12.9% compared to the same month a year earlier. >>> Cargolux has increased revenues in 2013 by 14.4% to US$1.98Bn, flying more than 900,000 ton kilometers as tonnage growth increased 16.7% to 753,848 tons in 2013 for
4. FF World Ocean Briefs
****Industry Upswing ......as the latest figures from liner shipping information company Alphaliner suggest an improvement in the container ship industry. Alphaliner's weekly newsletter says the active boxship fleet is at its highest for some time. Alphaliner says the active containership fleet has surged to its highest levels since August 2011, as new ship deliveries and a reduction in the idle fleet have brought the total active capacity to a new record of 15 million TEU. 62 new containerships have been delivered so far in 2012, representing a total capacity of 455,000 TEU. Of these new ships, 23 are larger than 10,000 TEU. This capacity increase has been partly mitigated by increased scrapping of older tonnage, with 55 ships (93,500 TEU) sent for demolition so far this year. Alphaline believes that as much as 200,000 TEU could be scrapped in 2012, but this will still remain a fraction of the delivered capacity, which is expected to reach 1,388,000 TEU. After a rise from a low of 0.5% in June 2011 to a peak of 5.8% in mid-March, the idle fleet is shrinking again, mostly through the reactivation of large units. The idle containership fleet has dropped sharply from 913,000 TEU in mid-March to 723,000 TEU as of 9 April. The idle fleet is expected to fall further in the next three months, with most of the ships of above 5,000TEU expected to be reactivated by summer.
Read More About Alphaliner
***Another Security Push Back .....as U.S. Homeland Security Secretrary Jeh Johnson has delayed for two more years new rules requiring all cargo containers entering the
***SOLAS Convention Gains Weight ....... as in September 2013 the IMO Sub-Committee on Dangerous Goods, Solid Cargoes and Containers Committee gave its support to the proposal on the verification of container weights prior to shipment, amending the so-called SOLAS convention. The Safety of Life at Sea (SOLAS) convention that will require verification of container weights before loading. On
***New Security Seal Standards ....... as according to a recent bulletin published by U.S. Customs and Border Protection (CBP), the new standard applies to all participants in the Customs-Trade Partnership Against Terrorism (C-TPAT) because C-TPAT security criteria require the use of high security seals meeting the current ISO 17712 standard. Specifically, the applicable criteria state "… a high security seal must be affixed to all loaded containers bound for the U.S." and "All seals must meet or exceed the current ISO 17712 standards for high security seals." CBP did not specify a particular implementation deadline, allowing the industry time to transition to the use of the new seals once old seal stocks have been depleted. The new standard includes a change to the so-called Clause 6 requirements for the tamper-evident aspects of high security seals. Notably, a manufacturer may conduct testing of the tamper-evident aspects of its seals either in-house or by employing a third-party testing laboratory that applies the manufacturer's test criteria and procedures. In addition, to be compliant with the new standard a high security seal must have a unique number (and may have an optional barcode), must have the company name or logo indicated on the seal, and must be marked or stamped to identify its classification as high security ("H") .
Read Full Details of The New Standards For High Security Seals
***New Cargo Transport Unit Code ....... as the MSC (IMO Maritime Safety Committee) approved on May 19th 2014 the new Code of Practice for the Packing of Cargo Transport Units (
Learn More About The New Code Practice
***Closing The Coast Guard? ........ as South Korean President Park Geun-hye formally apologized on 19 May for the M/V Sewol ferry disaster last month that killed about 300 passengers, mostly school children, and said she would break up the Korean Coast Guard because it had failed in its rescue mission. Park has been hit hard by an angry nation-wide outcry over the government's response to
Read More About The Korea Coast Guard Military Police Agency
***New Gates For The Big Ditch ....... as the Panama Canal Authority (ACP) is expecting the Marshall Islands-flagged heavy lift ship M/V Sun Rise, en route from Trieste to deliver four new gates for its third set of locks by mid-June depending on weather conditions. "This is another important milestone towards the completion of a project that will have an important impact on the international maritime community," said
***P3 Alliance Retools ......as members Maersk, MSC and
***Chiquita Brands Goes Home ......as after a nearly 40-year hiatus, the major American producer and distributor of bananas is returning its shipping operations to the
History of Chiquita's Great White Fleet
***Vietnam Levels Charges ....... as it has accused China of deliberately ramming two of its vessels in a disputed area where Beijing has built a giant oil rig near the Paracel Islands of the South China Sea, controlled by China but claimed by Vietnam. According to
***China River Traffic Surges ...... as waterways posted a 10.4% year-on-year increase in overall cargo volume to 5.59 billion tons in 2013, according to the latest statistics from
***Rebranding At MarAd .......as the
***Schneider Logistics Settles ...... as it will pay US$21M to settle a class-action civil lawsuit brought by about 1,800
***Shipping Six Packs ...... as three cars into a container once involved wooden supports and manpower, but now its possible get six cars in an high cube box using a rack, according to Consolidated Car Shipping (CCS). CCS offers a racking system for the benefit of freight forwarders and automotive shippers. They have been using racks to and from the
***Throughput >>> Port of Antwerp first quarter volumes rose 0.9% to 2.1 million TEU, but the 2.1% increase in container weights to 26 million tons exceeded growth in the number of boxes. >>> Port of Charleston container volumes for April set a six-year record at marking the busiest month since May 2008, the South Carolina Ports Authority said May 22.with 151,790 TEU and 1.374 million TEU in its fiscal year. >>>
***This Month In
1775 - Force under Ethan Allan and Benedict Arnold cross
1801 - Tripoli declares war against the United States
1844 - USS Constitution sails from New York on round the world cruise
1919 - Three Navy flying boats begin 1st trans-Atlantic flight from Newfoundland
1942 - Battle of Coral Sea, first carrier vs. carrier battle, begins
1945 - Japanese attempt to land on Okinawa repulsed; kamikaze attacks damage 6 U.S. Navy ships
2012 - Port of Los Angeles Harbor Commissioners voted unanimously to create a new home for the historic battleship USS Iowa (BB-61).
**Back By Popular Demand**
We're sorry, but there were so many sinkings, explosions, pirate attacks, fires, cargo mishaps, battles on the water & other disasters at sea that we do not have room to print even the highlights this month. Many people lost their lives at sea this month!!
But you can read all this month's disaster news at our special Internet web feature which provides full details of each event -- our Vessel Casualties & Pirate Activity Database. Bookmark the site and visit every day! Updated twice daily.
See our new feature for Oct. 2010: "How To Join Your Tuna"
See our newest photo feature "Singles Only" - Transportation Disasters Told In A Single Photo!
Daily Vessel Casualties ...... as we don't want you to miss the excitement of our 24 hour reports of the dramatic events at sea each day -- stories of casualties & pirates --- almost none of which are carried on your local news. Edited daily by Christoph Wahner, Esq. of Countryman & McDaniel.
NOTE: The historic dangers of carriage by sea continue to be quite real. Shippers must be encouraged to purchase high quality marine cargo insurance from their freight forwarder or customs broker. It's dangerous out there.
OUR "D" Section: FF in Cyberspace***
6. The Cargo Letter "Cyber Ports Of Call"
Here are our suggested world wide web sites of the week for your business, your information and your amusement..............
Cargo & Trade>>>>>>
Airforwarders Association Online Class: H8u—Air Shipment of Lithium Batteries, in depth (I
Airforwarders Association Online Class: Introduction to U.S. Export Controls & AES Procedures
Columbus' Santa Maria May Have Been Found off Haiti
Did You Know? Increddible Trade Statistics --Video Produced April 2014 ....... If you lined up all the containers for Maersk alone, they would stretch 11,000 miles!
Flying A Fallen Hero On Memorial Day
IMO's Maritime Safety Committee Guidance On Navigating Malacca and Singapore Straits
International Federation of Freight Forwarders Associations ...... the new website
Maritime TV: Thoughts on the M/V Sewol Korean Ferry Disaster
Maritime TV: MARAD National Maritime Strategy Symposium from May 6, 2014. Includes presentations from U.S. Secretary of Transportation Anthony Foxx.
Transport Security & Safety Trends eBook
White House Statement on Putin And The Ukrane
U.S. & Uruguay to Sign Customs Mutual Assistance Agreement
U.S. Customs & Border Protection - Modification of National Customs Automation Program (NCAP) Test of Automated Commercial Environment (ACE) Cargo Release for Truck Carriers
Trade Shows, Exhibitions, Conferences & Business Events Worldwide
World Trade Organization Events
33th Annual Western Cargo Conference --
2014 IANA Intermodal
Africa Ports and Harbours 2014 .........1-2 July 2014, Johannesburg
Africa Rail 2014 .........1-2 July 2014, Johannesburg, South Africa
Color Photographs of the Hindenburg
Customs Broker Boot Camp ........2-5 June, San Antonio, Texas
E-Navigation Revolution 5th Annual Conference and Exhibition.......11-12 Nov., 2014 –London, UK
FNC International Freight Conference 2014 Singapore ........12-14 June 2014, Singapore
Freight Forwarders Conference 2014 .........12-14 June 2014, Singapore
Maritime Innovation and Technology ........ 16-17 Oct. 2014, Malta
The Cargo Show Africa 2014 ......... 30 June - 3 July 2014, Johannesburg
TOC Europe 2014 ........24-26 June 2014, London
Apps For That - iPhones & Droids>>>>>>>>>
Cleverbot .......Talk to an app with Actual Intelligence! Say anything you like and it will reply. Make a friend! Roleplay, lyrics, jokes!
10 Unique BBQ Ideas
31 Air Traffic Control Towers With Surprising Charm
A Brief History of British Rail Travel
Adult Ascience Quiz ...... only 7% of Americans get all 13 questions right
An Island Hopper Adventure Unlike Any Other
Autonomous Octo-Copter Transport Truck - Amazing.
Elmer A. Sperry: Pioneer of Modern Naval Tech
F-35B Accomplishes First Night Vertical Landing Aboard USS Wasp
General Motors Tunnel of Love -- GM Heratage Center
Hazmat Highway to Hell with High Pressure Gas Cylinders
How Does He Do That ?
Old Neon Signs and Great Ford Cars
University of Texas at Austin 2014 Commencement Address -- Remarks by Naval Adm. William H. McRaven, BJ '77, ninth commander of U.S.Special Operations Command
Virtual D-Day Created Seventy Years On
Spy Plane Fries Air Traffic Control Computers, Shuts Down LAX -- May 2 2014
What is a #Hashtag? -- #Hashtags 101
What Is Your Brain Age?
OUR "E" Section: The Forwarder/Broker World***
Pyramid Tech. v.
U.S. Ninth Circuit Court of Appeals
19 May 2014, Case No. 11-56304
Pyramid Technologies, Inc. ("Pyramid") was storing older electronic parts in a warehouse. Pyramid purchased insurance from Harford Casualty Insurance Company ("
Note: The specialist nature of logistics cases often require the use of experts to explain the unique practices, procedures and standards of our industry. However, the legal requirements for serving as an qualified expert are often misunderstood. The usual qualification standard to be met is not limited to formal education alone, but also takes into consideration the special knowlege, skill, training and experience of the potential expert witness (for example, Federal Rules of Evidence, Rule 702). The best expert witness for your next lawsuit or visit to Small Claims Court just may be an experienced employee of your competitor or an officer of your local logistics association. Consider all the available industry resources when addressing your next legal situation or contact the Countryman & McDaniel attorneys.
Read the full court opinion: http://cdn.ca9.uscourts.gov/
Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping News Lloyds & other world sources.
Michael S. McDaniel, Esq. Editor (Countryman & McDaniel)
Christoph M. Wahner, Esq. (Countryman & McDaniel) Daily Vessel Casualties
Bruce Lindsay, Esq. (Countryman & McDaniel)
Maria Jackson (Countryman & McDaniel)
_The Cargo Letter_
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Michael S. McDaniel, Editor.
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_The Cargo Letter_ is published by The Law Offices of Countryman & McDaniel: Legal, Business, Marine Insurance and Claims representation of Air/Ocean Freight Forwarders, NVOCC's, Indirect Air Carriers, Shipper's Agents, Inland Carriers and Customs Brokers......and Liability & Marine insurance Underwriters since 1978 in the United States & world-wide via The Cargo Law Network. Member, Maritime Law Association of the
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