INTERNATIONAL UNIVERSITY

SCHOOL OF INDUSTRIAL & ENGINEERING MANAGEMENT

Group 3
Contents
I. INTRODUCTION.......................................................................................................................... 3
1.1 History and structure of the company ...................................................................................... 3
1.1.1 History ............................................................................................................................. 3
1.1.2 Structure ........................................................................................................................... 3
1.1.3 Contact information .......................................................................................................... 3
1.2 The roles of export in the company ......................................................................................... 4
1.3 Objectives of the project ......................................................................................................... 4
II. EXPORT PROCESS..................................................................................................................... 5
2.1 Products.................................................................................................................................. 5
2.1.1 Product overview: ............................................................................................................ 5
2.1.2 Products: .......................................................................................................................... 5
2.2 The steps of exporting products............................................................................................... 6
2.2.1 Negotiating and signing a contract .................................................................................... 6
2.2.2 Booking note.................................................................................................................... 7
2.2.3 Preparation of customs procedures ................................................................................... 8
2.2.4 Customs declaration ......................................................................................................... 9
2.2.5 Liquidation of customs declaration ................................................................................... 9
2.2.6 Entering the ship’s book ................................................................................................. 10
2.2.7 Customs settlements ....................................................................................................... 10
III. SWOT ANALYSIS AND RECOMMENDATIONS ................................................................. 11
3.1 Swot Analysis ....................................................................................................................... 11
3.2 Recommendations................................................................................................................. 13
3.2.1 Warehouse Expansion: ................................................................................................... 13
3.2.2 Aritificial Intelligence Applications: ............................................................................... 13
3.2.3 Employee Development ................................................................................................. 13
IV. APPENDIX............................................................................................................................... 14
V. CONTRIBUTION FORM .......................................................................................................... 14

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 List of Abbreviations
PTE.LTD Private Limited Liability Company

UPS Uninterruptible Power Supply

POL Port Of Loading

POD Port of Discharge

CO.,LTD Company Limited

D/O Delivery Order

B/L Bill Of Lading

C/O Certificate Of Origin

ETD Estimated Time of Departure

FCL Full Container Load

LCL Less than Container Load

FTA Free Trade Agreement

EVFTA European-Vietnam Free Trade Agreement

ASEAN Association of Southeast Asian Nations

Comprehensive and Progressive Agreement for Trans-

CPTPP
Pacific Partnership

ILO International Labour Organization

UKVFTA UK-Vietnam FTA

RCEP Regional Comprehensive Economic Collaboration

AEC ASEAN Economic Area

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I. INTRODUCTION
1.1 History and structure of the company
1.1.1 History
Schneider Electric Vietnam, established in 1994, is a subsidiary of Schneider Electric SE, a
multinational corporation headquartered in Rueil-Malmaison, France. Schneider Electric
Company is a provider of energy and automation digital technologies that help businesses save
money and live more sustainably. As a foreign corporation, Schneider Electric first came to
Vietnam in 1991 partnering with the government to construct the 500kV North-South
Transmission Line Circuit 1 from 1991 to 1993. Until now, the company has been continuously
combining and joining forces with market leaders in order to extend its product range, improve
its capacity and serve the needs of Vietnamese customers and business.

1.1.2 Structure

Director

Vice Director

Administrations Operations Finance Business

Manufacture Sales
Sales

Warehouse Services

Logistics

Figure 1: Schneider Electric Vietnam‘s Structure

1.1.3 Contact information

- Address: 7th Floor, e-Town Building, 364 Cong Hoa Street, Tan Binh District.
- Telephone: (028) 38103103
- Email: customercare.vn@schneider-electric.com
- Website: https://www.se.com/vn/vi/

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1.2 The roles of export in the company
Schneider Electric IT Vietnam mainly manufactures switches, sockets, smart grids, etc. This
makes export (raw material) vital to its business. Moreover, Schneider Electric IT Vietnam is
a key link in the Schneider Electric supply chain. This branch is essential for Schneider Electric
IT Vietnam to supply for many markets.

1.3 Objectives of the project

The project aims to learn more about the export process, identify the main problems of the
process, and the current situation of exporting activities in order to have a better understanding
of the export process internationally as well as the export situation of the company recently
based on its export documents. Furthermore, the project also proposes some solutions and
recommendations to further improve the company's exporting activities, and contribute to
promoting the development of the company.

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II. EXPORT PROCESS
2.1 Products
2.1.1 Product overview:
Importer: Schneider Electric It Logistics Asia Pacific Pte. Ltd. was founded in 1998. It is a
private limited company which means that shares are limited and are not public. This type of
enterprise is suitable for the company because instead of selling goods like other branches, the
company focuses on providing management consulting services.

Exporter: Schneider Electric IT Vietnam, established in 1994, is another subsidiary of

Schneider Electric SE. The companies provide energy and automated technologies for other
businesses inside and outside of Vietnam territory. Despite having the same origins, there are
no laws that forbid trade between two subsidiaries.

2.1.2 Products:
The commodity: UPS (Uninterruptible Power Supply) – HS code: 85044011
Including:
• APC Back-UPS 1400VA, 230V, AVR, Universal, and IEC Sockets
• APC Smart-UPS C 3000VA LCD 230V
• APC Smart-UPS 1500VA LCD 230V
• APC Smart-UPS 3000VA LCD 230V
• APC Smart-UPS SRT 10000VA RM 230V
• APC Smart-UPS SRT 10000VA 230V
• APC Smart-UPS SRT 3000VA 230V
• APC Smart-UPS SRT 5000VA RM 230V
• APC Smart-UPS SRT 5000VA 230V
• APC Smart-UPS SRT 6000VA RM 230V
• APC Smart-UPS SRT 8000VA RM 230V
• APC Smart-UPS SRT 8000VA 230V
• APC Smart-UPS 5000VA 230V Rackmount/Tower
• APC Smart-UPS RT 1000VA 230V

An uninterruptible power supply or uninterruptible source of power (UPS) is an electrical

apparatus that provides emergency situation power to a load when the input power source or
keys power falls short. A UPS varies from a complementary or emergency power system or
standby generator in that it will provide near-instantaneous defense from input power
interruptions, by supplying energy saved in batteries, supercapacitors, or flywheels. The on-
battery run-time of the majority of uninterruptible sources of power is fairly short (only a few
minutes) but enough to begin a standby source of power or effectively close down the protected
tools. It is a sort of consistent power system.

UPS is commonly made use of to secure equipment such as computers, data centers,
telecommunication devices, or various other electrical devices where an unforeseen power

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disruption could trigger injuries, deaths, significant business disruption, or data loss. UPS units
range in size from units developed to secure a single computer system without a video monitor
(around 200 volt-ampere score) to big systems powering entire data centers or buildings.

Every one of the above items is the various groups of UPS which are given by Schneider
Electric Vietnam Limited business as well as supplied to its Head Business in Singapore. The
total payment for this shipment is USD 62,093.00 for a total of 17 pallets.

2.2 The steps of exporting products

Negotiating and signing a

Customer settlements
contract

(1) (6)

Booking note Entering the ship’s book

(2) (5)

Preparation of customs Liquidation of customs

procedures declaration

(3) (4)

Customs declaration

Figure 2: Steps of exporting products by ocean transport in Schneider Electric IT Vietnam Ltd.

2.2.1 Negotiating and signing a contract

The first stage of exporting goods is also the most critical stage which determines the
company’s profitability. After negotiating with the client some terms and conditions such as a
commodity, packing and marking, price, delivery, and payment terms, the company must sign
a foreign trade contract for the shipment. In this contract, both companies have agreed to choose
CPT Incoterm 2010.

A sale contract is an agreement between a buyer and a seller that covers the purchase and
distribution of products, securities, and other personal property. International sales contracts
fall under the United Nations Convention on Contracts for the International Sale of Goods
(CISG), also known as the Vienna Sale Convention. According to CISG, the Seller (the
Exporter) is obliged to deliver goods, and transfer the ownership thereof to the Buyer (the

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Importer); the Buyer is obliged to receive the goods and the ownership thereof and arrange
payment.

In particular:
Contract no. 954000467
Date: September 04th, 2020
Between: SCHNEIDER ELECTRIC IT LOGISTICS ASIA PACIFIC PTE LTD
Address: 10 Ang Mo Kio Street 65, #03-06/10 TechPoint SINGAPORE
Hereinafter referred to as "Buyer”
and: Schneider Electric IT Vietnam Ltd
Address: Level 8, VINA CONEX Building, 34 Lang Ha St., Lang Ha Ward
Tel: 84 (04) 3831 4037
Fax: 84 (04) 3831 4039
Represented by: KELLY KERK - Director
Hereinafter referred to as “Seller”

2.2.2 Booking note

For taking an empty container, Bollore Logistics receives the details that the Schneider Electric
IT Vietnam sends to:
- Commodity: accessories
- Total volume: 1 x 40GP
- POL: Cat Lai Giang Nam
- POD: Manila North Harbour
- Drop-off Warehouse

Then Bollore Logistics will contact the carrier to register the container called Booking note via
fax or email. After receiving the request to book a container, the shipping company will
consider if accepting, the shipping company will mail Bollore Logistics a booking note on
which the booking number, owner name, type of cargo, number of containers, ship name, trip
number, and ETD. The company will check the booking, if there is an error, ask the shipping
company to correct it, if it is correct, the company will take this Booking to the representative
office of the shipping company at the port to receive “Empty Release Order” and the agent will
issue a seal corresponding to that container.

The empty container and seal number for this booking is: SITSGMNG206211

The operation staff will bring an “Empty Release Order” to the depot to take the container. The
staff at Inland container depot will give operation staff an Equipment Interchange Receipt
(EIR) to confirm that the container has been taken. When receiving the container, the operation
staff should check the empty container carefully. If the consignee later receives the goods and
returns the damaged container the shipping company will not accept or pay compensation for
the repair of the container.

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 2.2.3 Preparation of customs procedures
E-customs declaration has attracted a large number of enterprises. Enterprises can benefit from
this method in several ways such as faster flow of goods, more efficient transit procedure,
paperless customs clearance, and lower costs of a customs procedure. The document staff
should declare export information through the software ECUS5 installed at the office and
submit it to Customs online.
After preparing a set of documents: Authority Letter, Contract, Packing list, Commercial
Invoice, D/O, B/L, and C/O, document staff will declare an electric customs declaration
form.
⮚ Filling the general information:
▪ Group type: the consignment is exported by Schneider Electric IT Vietnam for the
purpose of business, so the corresponding type is business.
- Code of group type: B11
- Declaration handling section code: 01

▪ The exporter:
- TIN: 0104169272
- Name: Schneider Electric IT Vietnam Ltd
- Postal code: (+84) 43
- Address: Level 8, VINA CONEX Building, 34 Lang Ha St., Lang Ha Ward, Dong Da,
Ha Noi
- Phone: 0438314037

▪ The importer:
- Name: Schneider Electric IT Logistics Asia Pacific Pte.Ltd
- Address: 10 Ang Mo Kio Street 65, #03-06/10 Techpoint Building, Singapore 569059
- Country code: SG

▪ Bill of lading: The export goods at the time of declaring have no bill of lading, so the
box is blank.
- Quantity: 17 PP
- Gross: 4.355 KGM
- Storage location: 02PGOZZ
- POD: PHMNL Manila
- POL: VNCLI Cat Lai Harbour (HCM)
- Expected means of conveyance: 9999 Los Andes Bridge V.150E
- ETD: September 16th, 2020
- Invoice No: SITSGMNG206211
- Released date: September 4 th, 2020
- Total invoice value: CPT – USD – 62.093 – A
- Taxable exchange rate: USD – 23.090
⮚ Filling the Container information:
Location of loading goods:
- Code: 02CIS01

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 - Name: SAIGON NEWPORT CORPORATION
- Address: 1295 Nguyen Thi Dinh, Cat Lat, District 2
- Container No. TGBU6672604
⮚ Inputting the list of goods:
Schneider Electric IT Vietnam exports 25 products, take a product UPS as an example
of filling the goods information.
- HS Code: 85044011
- Commodity descriptions: (BX1400U-MS) UPS capacity of 1400VA, voltage 230V,
new 100%&PH
- Amount: 1 PCE
- The unit price of invoice: 338 USD – PCE
- Taxable unit price: 7.804.420

2.2.4 Customs declaration

The document staff submits the above documents to the declaration registration department
which would check tariff according to the existing receipt number before making an electronic
customs declaration. At this time, the document staff will wait for the customs officer to check
all files and the tax. If the inspection is valid to the declaration, the officer will issue this
shipment with “Taxpayer receipt”. After the preliminary inspection of the shipment’s
information, the Customs based on the electronic customs declaration to issue “Order form,
inspection level”.

For dossier level 1 (green channel): exemption from detailed examination of records,
exemption from examination actual goods. The file will be transferred to the civil servant for
certification and stamping the number of civil “confirming that the goods have passed the
supervised area” on the e-customs declaration. Then, the dossiers are transferred to the customs
fee collection department with the stamp “Customs procedures have been completed” and the
declaration is returned to the customs declarant.

For dossier level 2 (yellow channel): detailed examination of records, exempt from actual
inspection goods. The remaining steps are the same as those in level 1(green channel).

For dossier level 3 (red channel): detailed inspection of records and physical inspection of
goods. At this level, the goods can be inspected the entire 100% of the shipment; or reality
check 10% of the consignment. If no violation is found, this is the end of inspection; otherwise,
the goods must be inspected until the level of violation is concluded and the same goes for the
actual inspection of 5% of the consignment.

In this case, the declaration number is 303455529220 and the checking code is 01 which
means the products go through the green channel.

2.2.5 Liquidation of customs declaration

The document staff brings the declaration to the customs supervising office to liquidate the
declaration. Customs staff will stamp on the box “Confirmation of customs examination”.

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In this case, Schneider Electric IT Vietnam chooses FCL shipping; therefore, they liquidate at
the customs supervising office, and entering the ship’s book is complete.

2.2.6 Entering the ship’s book

When the goods are delivered to the port, the delivery staff brings the declaration with details
of the container to register with the Commercial Counsel’s Office to confirm that the container
has been lowered. The customs staff will base on the details of the declaration and the details
of the container such as vessel name, trip number, container number, seal number, the weight
of goods, etc to record on the summary of outgoing shipments and issue the delivery staff the
receipt of confirmation to the ship resignation.

The purpose of this step is to locate the shipper’s container. The operation staff can find the
container through the advanced port scanner by entering the container number and the seal
number into the system to get the results. Container entering the book means that it is under
the control of the customs without the fear of dropping the container when loading on board.

After the vessel departs, the process of making Bill of Lading is conducted according to the
following diagram

The shipping line Bollore Logistics Schneider Electric IT

sends the draft sends the draft Vietnam checks the
Master B/L to House B/L to the accuracy of the draft
Bollore Logistics customer B/L

Bollore Logistics Bollore Logistics

sends the official
Master B/L to
Bollore Logistics
Schneider Electric IT
sends the official
Vietnam receives the
House B/L to the
official B/L
customer

Figure 3: The process of making Bill of Lading

When having the Bill of Lading, the document staff bring the declaration and B/L to the export
department at the port to carry out the actual export procedures. The customs officers will issue
customs seals and confirmation on the actual export based on B/L.

2.2.7 Customs settlements

After completing the export clearance procedures, Schneider Electric IT Vietnam records the
payment and all the actual expenses compared to the advance, then handing over to the
accounting department all of these invoices and documents related to the Schneider Electric It
Logistics Asia Pacific Pte Ltd’s shipment. At this time, the export process is completed.

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 III. SWOT ANALYSIS AND RECOMMENDATIONS
3.1 Swot Analysis

➢ Good financial resources: Being one of the brand names in digital transformation in Vietnam,
Schneider Electric has a transparent view of financial takings like operation organization, cash
flow management, and funding that offers them a possibility of having a sufficient accounting.

➢ Production management: Schneider Electric has its own factory located in Saigon Hi-tech Park
that helps them meet the growing demand of Vietnam business, reduce the lead- time in the
production schedule, and improve product quality. Furthermore, having its own manufactures
also helps the company to expand foreign markets as the company can distribute goods to other
subsidiaries that do not have their own factories.

➢ Efficient delivery process: Schneider Electric Vietnam has a long-term relationship with Bollore
Logistics Vietnam Co.Ltd. In fact, most of Schneider's contracts have been operated by Bollore
Company. With their partner relationship, they can reduce unnecessary steps in making a contract
which can lead to less time in the delivery process.

➢ Transport fee fluctuation: with a productive factory in VN Schneider Electric can export
its goods to many countries. However, this raises potential problems with the
transportation cost. In a Covid situation, ocean and air freight prices rise and fluctuate.
Just a slight change in transportation cost can affect an export-oriented supply chain

➢ High transportation fee: Schneider Electric VN act as a manufacturer it has to deliver

goods to other branches to sell which leads to the raise of the logistic fee. This could
potentially affect the price of some items, overall not maximize the supply chain

➢ Passive supply chain: Schneider Electric VN mostly manufactures so it relies on its

branches to act as an agency to approach customers. This makes it completely dependent
on others' decisions.

➢ Lack of flexibility: Mostly Schneider Electric VN uses the FCL method which still has
room for maximizing efficiency. By applying LCL the company can be more prepared
for unexpected demand and flexible in decision making.

➢ FCL’s weakness: high cost because FCL requires you to pay for and accommodate the
full container usage which often makes the operation more expensive. Moreover, FCL
does not attend to the needs of importers and exporters with smaller cargo volumes.

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 ➢ Vietnam Strong Estimated Growth Market: Vietnam is one of the rare countries which can still
keep its economic growth rate higher than the world average. There are plenty of key
developments taking place and the Vietnamese economy is diversifying to cover the needs of
the country’s young and growing population. There will be a higher demand for efficient energy
management, not only for large corporations but also for small- to medium-sized enterprises.
Schneider Electric is considered to be one of the biggest providers of eco-friendly solutions to
improve safety, reliability, efficiency, sustainability, and connectivity for the customers.

➢ Master Plan For Expanding The Port: Schneider Electric will have a chance to increase its
volume of merchandise throughout the supply chain since Vietnam is additionally intending
considerable investments made to develop world-class ports in the following stage of its master
plan for its port system. The Ministry of Transportation, claimed on 30 December, that it intends
to invest between around $6 billion and also $8 billion by 2030 in the next phase of port
development, as part of a long-lasting preparation for 2050.

➢ International Trade Agreements: With recent trade agreements such as CPTPP, EVFTA,
UKVFTA, and the upcoming RCEP. Vietnam is to focus on international trade assimilation
profession partners outside ASEAN. Such trade agreements will allow numerous Vietnam
workplace assigned companies such as Schneider Electric to make the most of the minimized
tolls, both within the AEC as well as with the EU and also the US to draw in exporting firms
to produce in Vietnam as well as export to partners outside ASEAN.

➢ Competitive market: There are many multinational electronics providers in Viet Nam such
as DAEWOO, Lever, etc. Although Schneider is famous for their UPS, there are more than
20 UPS providers in Viet Nam so Schneider will have to approach their customers more if
they want to secure their market shares.

➢ Overdependence on other branches: Schneider Electric Vietnam relies on other branches

to export goods and has yet to find a long-term foreign partner. This makes the company
passive in the export process and can cause excess inventory or backorders.

➢ Higher Freight cost: Due to the Covid 19, the number of containers available is less than
ever before. While Schneider prefers to use the FCL method for export, there might not be
enough containers.

➢ Shortage of Raw Materials: There are no large electronic components suppliers in Vietnam
so unforeseen problems from the supplier side can leave the companies out of stock.
Schneider Electric IT Viet Nam is the main manufacturing branch in South East Asia so
the company capacity might not be able to handle a sudden surge in demand.

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3.2 Recommendations
3.2.1 Warehouse Expansion:
The company's growth and business penetration would ultimately necessitate the use of more
storage space and various types of containers. As a result, Schneider Electric Vietnam could
either extend its warehousing capacity or seek out new facilities, as well as invest in additional
equipment to support the container. Such investments would allow the business to become
more proactive in terms of packing and pricing, lowering shipping, and other related costs.
In fact, Schneider has two existing warehouses on the North and South sides of Vietnam:
• North: ICD Tiên Sơn, TS9 street, Tien Du ward, Bac Ninh Province
• South: DT 743, 1B Hamlet, Thuan An, Binh Duong

3.2.2 Aritificial Intelligence Applications:

Artificial Intelligence has become one of the most conspicuous trends recently. With its help,
Schneider Electric IT Vietnam could:
• Predict the consumption trends
• Select the most efficient transport routes and journeys
• Have greater control of information in the whole export process
Therefore, the company should invest more in Artificial Intelligence to reduce the risk of error.
In particular from what we observe, Schneider Electric IT Vietnam still uses traditional ways -
namely Word and Excel for packing lists, commercial invoice, D/O, etc. To streamline the
processes SAP is a viable selection. SAP will improve the export process with the following:
• SAP will collect each product’s weight, height, and volume and then calculate each
product’s gross weight, volume weight, and whole pallet.
• SAP can create D/O based on the data of pallets inputted. When there is a demand
D/O and all the related papers will be prepared based on the ETD, this process
doesn’t have to wait for the product to be in the warehouse. In sum, this will make
the whole process quicker, more efficient, and more precise.

3.2.3 Employee Development

To compete with other multinational companies in the market, Schneider Electric IT Vietnam
will need to improve their customers' satisfaction. This means improving the competencies of
their employees, mainly their sales and customer service departments. This training will mostly
be soft skills courses that focus on negotiation, language, and empathy. All employees should
also have at least some basic electrical and technical knowledge about the company's product
and manufacturing process.

To increase output capacity, Schneider Electric IT Vietnam needs to increase both the physical
and skills capacity of their workers. The company should organize sports competitions to guide
their employees to a healthy lifestyle. They ought to teach their workers to be able to identify
electronic parts and hold workshops to allow new employees chances to practice. They can

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also invite experts from overseas branches to come and help improve technical skills of their
employees. The company can offer senior positions for skilled and experienced workers to
motivate their employees to do better.

IV. APPENDIX
[1] Sales Contract
[2] Packing List
[3] Commercial Invoice
[4] Delivery Order
[5] Customs Declaration Form
[6] Booking Confirmation
[7] Equipment Interchange Receipt
[8] Verified Gross Mass Of Container On International Transport

Reference List:
[1] Stefanini. (2019, April 25). How businesses can benefit from SAP software.
Retrieved from: https://stefanini.com/en/trends/news/how-businesses-can-benefit-from-sap-
software/

[2] Nguyễn Ly. (2018, September 21). Quy trình làm hàng xuất khẩu đường biển. Retrieved
from: https://dnlogis.com/blogs/giao-nhan-van-tai-duong-bien/quy-trinh-lam-hang-xuat-khau-
duong-bien

[3] International Cargo Express. (2019, December 02). How the Shipping Process Works, Step-
By-Step (+ Flow Chart). Retrieved from: https://www.icecargo.com.au/shipping-process-2/
[4] Fox Brasil. The Pros and Cons of FCL & LCL Shipments. Retrieved from:
https://foxbrasil.com/blog/2018/07/30/fcl-lcl-shipments/

[5] Vietnam Investment Review. (2019, April 30). Schneider Electric’s 25th anniversary.
Retrieved from:
https://www.vir.com.vn/schneider-electrics-25th-anniversary-67406.html

V. CONTRIBUTION FORM

No. Full Name Student ID Contribution

1 Hoàng Đỗ Linh Chi IELSIU19119 100%

2 Nguyễn Chí Hiếu IELSIU19021 100%

3 Nguyễn Minh Hiếu IELSIU19022 100%

4 Nguyễn Ngọc Xuân Phương IELSIU19243 100%

5 Trần Duy Phúc IELSIU19059 100%

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