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Freight Forwarding Operations

Unit
East African Customs and Freight Forwarding
Practicing Certificate

An Advocate of Freight Logistics Profession


Topic 6
SPECIAL GOODS

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Specific Learning Outcomes

At the end of this topic the trainee should be able to:


• Analyse the types of Special goods
• Discuss the procedures for handling special goods
• Discuss the documentation required in handling special goods

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Definition of Special Goods

• Special cargo means cargo which requires special attention in


terms of procedures for acceptance at the port of loading,
handling at port of discharge and general clearance. Special
cargo includes:
• Live animals
• Perishables
• Project cargo
• Dangerous goods.

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Live Animals
• Live animal transport is a complex, high-touch process involving everyone
from the shipper to freight forwarders to airline staff, including the
handlers.
• Handling and transportation of live animals is governed by IATA Live
Animals Regulations (LAR).
• The objective of the LAR is to ensure all animals are transported safely
and humanely by air.

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Live Animals

• Need special requisite documents like veterinary certification by


relevant line government agencies, packaging in isolation with
good ventilation, proper and timely animal feeding procedure
before the animal is allowed in and out of a port.
• Customs normally have special documents to facilitate customs
clearance on preference, in the case of Tanzania form C15 is
filled for purposes of customs clearance.
• Different countries have their own requirements to import live
animals.

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Perishable Goods
• These are goods that do not have a long shelf life like flowers, fish, fruits and beef
to mention a few.
• Most perishable goods are transported by air for faster delivery to destination.
• Before taking receipt of the import cargo, a freight forwarder must double check
with the documents to confirm the actual state of goods.
• Reefer containers are used to maintain requisite temperatures (Trainer to explain
on what a reefer container is)
• Prior arrangement must be done to have all requisite documentation prepared
beforehand like export permits clearance from relevant line government agencies.
• The freight forwarder must book with the airlines or vessel beforehand for quick
and timely dispatch of cargo.
• Freight forwarders must always remember to double check with the required set
temperatures for each shipment as may be required.

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Project Cargo
• Project Cargo is a term used to broadly describe the national or
international transportation of large, heavy, high value or a critical
(to the project they are intended for) pieces of equipment.
• Project cargo forwarding has proved to be more lucrative
worldwide.
• The discovery of minerals, Government commitment to develop
infrastructure, power projects and Oil exploration among others
all point at the need for freight forwarders to have competencies
in project cargo management.

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Project Cargo
• Some of the key issues in project cargo forwarding include:
o Feasibility Study – technical and financial.
o Route Survey
o Survey on customs clearance and transport requirements
o Pre-customs clearance
o Advance bookings
o Port facilities
o Competency of other service providers within the project supply chain
o Delivery schedules/timelines
o EHS (Environment, Health & Safety)
o Cost management

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Project Cargo

o Journey management plan


o Emergency Response Strategy
o Communication & feedback Strategy
o Cash flow Management
o Fit for Purpose Equipment
o Reverse Logistics
o Camping Services
o Out of Gauge Shipments
o Dangerous Cargo Transportation and Storage
o Risk Management etc.

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Dangerous Goods
• Research has revealed that approximately 40-50% of the cargo
carried on various transport modes fall directly under the
category of dangerous goods.
• Also referred to as hazardous materials (HAZMAT or HazMat).
• Dangerous goods include materials that are radioactive,
flammable, explosive, corrosive, oxidizing, asphyxiating, bio
hazardous, toxic, pathogenic, or allergenic.

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Importance of Awareness of Dangerous Goods to a
Freight Forwarder
• The forwarder shoulders a lot of responsibility thus must acquire
from the customer/shipper ALL the relevant information in
compliance with relevant rules and regulations prior to
proceeding with execution of the transportation.
• Relevant certificates and shipper’s declaration must be correctly
filled out and signed by the shipper.
• Marking and Labeling of the cargo must be correctly done using
the correct placards.

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Rules and Regulations Governing Dangerous Goods
by Transport Mode
• The United Nations Economic and Social Council issues the UN
Recommendations on the Transport of Dangerous Goods, which
form the basis for most regional and national regulatory schemes
o AIR TRANSPORT IATA/ICAO DGR
International Air Transport Association Dangerous Goods Regulations
which are revised periodically.
o SEA/OCEAN TRANSPORT IMDG
International Maritime Dangerous Goods Code which was published by
International Maritime Organization.
o ROAD TRANSPORT SDR/ADR (Europe)
o RAILWAY TRANSPORT RSD/ RID (Europe)
Organization for International Carriage by Rail
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Factors to Consider When Transporting Dangerous
Goods
• In order to have safe transport of dangerous goods the following
important issues must be taken into account:
o Classification of dangerous goods
o Safety packing of dangerous goods
o Hazard warning signs
o Documentation
o Safe transport operations
o Safe storage
o Segregation of incompatible goods

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Classification of Dangerous Goods

The process of classification of Dangerous Goods involves


several steps

STEP 1:
• Assignment of goods to hazard classes according to defined
criteria.
• Generally dangerous goods are classified under Hazard
Classes 1-9 (as illustrated below).

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Classification of Dangerous Goods

Class Description of cargo


o Class 1: Explosive substances and articles
o Class 2: Compressed, liquefied or dissolved gases
o Class 3: Flammable liquids
o Class 4.1: Flammable solids, self-reactive substances
o Class 4.2: Spontaneous combustible substances
o Class 4.3: Water-reactive substances
o Class 5.1: Oxidizing substances
o Class 5.2: Organic peroxides
o Class 6.1: Toxic substances
o Class 6.2: Infectious substances
o Class 7: Radioactive material
o Class 8: Corrosive substances
o Class 9: Miscellaneous dangerous substances and articles.

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Hazmat Classification System
• Class 1: Explosives • Class 4: Flammable Solids
• 1.1 Mass explosion hazard • 4.1 Flammable solid
• 1.2 Projection hazard • 4.2 Spontaneously combustible material
• 1.3 Predominately a fire hazard • 4.3 Dangerous when wet material
• 1.4 No significant blast hazard • Class 5: Oxidizing Agents & Organic Peroxide
s
• 1.5 Very insensitive explosives; blasting agents
• 5.1 Oxidizer
• 1.6 Extremely insensitive detonating substances
• 5.2 Organic peroxide
• Class 2: Gases
• Class 6: Toxic & Infectious Substances
• 2.1 Flammable gas
• 6.1 Poisonous materials
• 2.2 Non-Flammable compressed gas
• 6.2 Infectious substance (Etiologic agent)
• 2.3 Poisonous gas
• Class 7: Radioactive Material
• Class 3: Flammable and Combustible Liquids
• Class 8: Corrosive Material
• Class 9: Miscellaneous Hazardous Materials
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Classification of Dangerous Goods

STEP 2: Clear identification by UN-number


o UN-number has four digits where by class 1 starts with zero.
o Single entries for well-defined substances e.g. UN1090 acetone.
o Generic entries for well-defined substance group e.g. UN1133 adhesives.
o Specific N.O.S. entries covering a substance group e.g. UN1477 nitrates,
Inorganic N.O.S.
STEP 3: Frequently transported goods mentioned by name in
dangerous goods list.
STEP 4: Generic entries (N.O.S – shipping name) to assign goods not
listed by name.
• For proper description of Dangerous goods, the following must be
noted
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UN Model Regulations

• Developed by UN economic and social council – committee of


experts on the transport of dangerous goods.
• Addressed to government and international organizations
concerned with regulations for dangerous goods.
• Not applicable for bulk transport of dangerous goods in ships.
• Basic scheme or provisions allowing uniform development of
dangerous goods regulations for various modes of transport.
• Contribution to worldwide harmonization of transport
regulations.

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UN Model Regulations

Subdivision of Class 1
• Subdivision according to the extent of hazard:
o
Mass explosive substances and articles.
o
Substances and articles with projection hazard, not being mass explosive.
o
Substances and articles which have a fire hazard and a minor blast hazard or a
minor projection hazard or both, but not a mass explosion hazard.
o
Substances and articles which present no significant hazard.
o
Very insensitive mass explosive substances.
o
Extremely insensitive articles which do not have a mass explosion hazard.
• Compatibility group class 1
o Assignment according to the nature of the substance or article.

o Designated to determine permitted mixed loading


o
Following compatibility groups exist: A, B, B, D, E, F, G, H, J, K, L, N, S.

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UN Model Regulations

• Subdivision of Class 2
o Flammable gases
o Nonflammable, nontoxic gases
o Toxic gases

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UN Model Regulations

• Subdivision of Class 4.1


o Flammable solids
o Self-reactive solids and liquids
o Desensitized explosive substances.
• Subdivision of class 7
o Excepted package
o Category I – low radiation level (<0.005mSv/h on the packaging)
o Category II – medium radiation level (<0.5mSv/h on the packaging)
o Category III – high radiation level (>0.5 mSv/h on the packaging)

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UN Model Regulations

Classification of substances not listed by name


• According to the properties:
o Physical state (solid, liquid, gaseous)
o Chemical formulation (e.g. alcohol, ketone, cyanide)
o Explosive properties
o Flammability
o Liability to spontaneous combustion
o Gas evolution upon reaction with water.
o Oxidizing properties
o Toxicity
o Corrosive effects
• Effect of the marine environment assigned by the shipper to the n.o.s. (not
otherwise specified) entry which most exactly describes the properties

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UN Model Regulations

• Classification of substances listed by name


o Special requirements
o Explosive substances and articles
o Self-reactive substances
o Organic peroxides
• Subsidiary risks
o Substances with multiple hazards
o Mixtures of substances with different hazards
• UN – Members
o Four digits (Class 1 starts with “O”)
o Assignment for specific substances or specific groups of substances
o This is assigned by United Nations Committee of Experts on the Transport of
Dangerous Goods.

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UN Model Regulations

• Classification of substances listed by name


o Special requirements
o Explosive substances and articles
o Self-reactive substances
o Organic peroxides
• Subsidiary risks
o Substances with multiple hazards
o Mixtures of substances with different hazards
• UN – Members
o Four digits (Class 1 starts with “O”)
o Assignment for specific substances or specific groups of substances
o This is assigned by United Nations Committee of Experts on the Transport of
Dangerous Goods.

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UN Model Regulations
No. CLASS/DIVISION GROUP I GROUP II GROUP III

1 3 Liquid or viscous substances - V V


2 4.1 Flammable Solids - V V
3 4.2 Spontaneous combustible - V V
substances

4 4.3 Water reactive substances - V V


5 5.1 Oxidizing Substances V V V
6 6.1 Toxic Substances V V V
7 8 Corrosive Substances V V V

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Identification Packing Code:

Unique or External Packing:


• A three numbers code used to identify packing other than internal is
done as follows:
o An Arabic number indicating the type of packing
o Followed by a capital letter indicating the nature of the item
o Followed, if necessary, by an Arabic number indicating the category of packing
within the type to which it belongs to.
• For the mixed packing, two capital letters are used to indicate the
nature of items used: The first letter the item contained in, and the
second indicating the nature of the container. For the mixed packing,
only the code of the container is used.
• Gases in bulk according to Solas chapter vii part ‘c’
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Identification Packing Code

Inner Packaging:
• A three or four numbers code is used to identify the inner
packing;
o Capital letters <<IP>> meaning <<Inner Packaging>> or internal
packing;
o Followed by an Arabic number identifying the type of packing;
o And, if necessary, by a capital letter indicating the category of packing
to which it belongs.

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Identification Packing Code

• Identification of Dangerous Goods


o UN – Number
o Proper shipping name
o Supplemented by chemical name (if applicable)
o Class
o Subsidiary risks (if applicable)
o Packaging Group (when assigned)
• Examples of proper dangerous goods description
o UN 1830 SULPHURIC ACID, class 8, II
o UN 2902 PESTICE, LIQUID, TOXIC N.O.S. (draxozolon) class 6.1, II
o UN 1902 ACROLEIN, stabilized, class 6.1 (3), I
o UN 1992 FLAMMABLE LIQUID, TOXIC, N.O.S. (ethanol and toluidine), class 3
(6.1), II.
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Identification Packing Code
• Selection of containments
o Packing instruction for each UN – Number in dangerous goods list
o Packing instructions for:
o Regular packaging
o Large packaging
o Intermediate bulk containers (IBC)
o Tanks
o Bulk containers

• Types of containment
o Regular packaging (Volume max. 450L)
o Large packaging (volume max. 3000l) for inner packaging)
o IBC (volume max. 3000l) for liquids or solid bulk.
o Tank (volume not restricted) for liquid or solid bank.
o Bulk container (for low hazard goods only)

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Identification Packing Code

Chemical and Physical Properties of dangerous goods


• Dangerous goods are classified based on chemical and physical properties
and how the same react in other substances. The major grouping is as follows:
• Class 1: Explosives
o Division 1.1: Substances and articles which have a mass explosion hazard
o Division 1.2: Substances and articles which have a projection hazard but not a mass
explosion Hazard
o Division 1.3: Substances and articles which have a fire hazard and either a minor blast
hazard or a minor projection hazard or both, but not a mass explosion hazard
o Division 1.4: Substances and articles which present no significant hazard
o Division 1.5: Very insensitive substances which have a mass explosion hazard
o Division 1.6: Extremely insensitive articles which do not have a mass explosion hazard.

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Reading a Label

Labels go on packages

Each label (and placard)


has its own:

o Color
o Symbol
o Wording or ID number
o UN hazard class number

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Class 1: Explosives
Hazard: rapid rate of pressure rise
within short time interval
Examples/hazard:
1.1 TNT, mass explosion
1.2 Detonating cord,
projection hazard,
fragments
1.3 Ammunition, fire,
blast or projection
hazard

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Class 1: Explosives
1.4 Detonating material,
minor explosion hazard
1.5 Blasting agents i.e. ANFO
(ammonium nitrate and
fuel oil mixtures), mass
explosion but very
insensitive
1.6 Articles, explosive,
extremely insensitive

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Class 2: Gases

2.1 Flammable, propane


2.2 Non-flammable,
nitrogen, argon, helium
2.3 Poison (toxic), chlorine
and hydrogen cyanide;
may also have other
hazardous properties

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Class 3: Flammable/Combustible Liquids

Class 3: Flammable/Combustible Liquids


Class 3: Flammable liquids may
easily ignite (e.g., gasoline and
alcohol)

Class 3: Combustible liquids will


not readily ignite and may have to
be pre-heated (e.g., kerosene and
fuel oil)

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Class 4: Flammable Solids

4.1 Burn readily and violently;


aluminum powder, coated
4.2 Air-reactive, barium alloys,
pyrophoric
4.3 Water-reactive with
possible poisonous fumes,
barium

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Class 5: Oxidizer

5.1 Provide oxygen to the


combustion process;
potassium superoxide

5.2 Also enhances burning


and may be heat,
shock and friction
sensitive; organic
peroxide

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Class 6: Poison (Toxic)
6.1 Solid or liquid state with
poisonous properties
(e.g., chloropicrin)
6.2 Infectious substances
like biological and
organic materials that
may cause disease (e.g.,
live micro-organisms)
inhalation hazard also
used for materials listed
as poison inhalation
hazard (PIH)

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Class 7: Radioactive
Used to denote emitters of alpha or
beta particles of radiation or gamma
radiation

o Radioactive I:
Least hazardous
o Radioactive II:
Moderate hazard
o Radioactive III:
More serious hazard comparatively

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Class 8: Corrosive

Damage to skin; may corrode


steel or aluminum as well as
some may be water-reactive

Nitric acid and hydrochloric acid


in addition to sodium hydroxide
are examples

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Class 9: Miscellaneous

Mildly hazardous and may be


physically solid, liquid or gas state

Extremely annoying due to


producing vapors which may
interfere with flight crews

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Marking and Labelling of Dangerous Goods

Marking:
• The consignor is responsible for all marks and labels which
have to appear on each package of dangerous cargo or over-
packing gathering dangerous cargo packages;
• There are two types of marks;
o Marks identifying the mode or specification of packing without
considering its use for a certain consignment (done by a manufacturer).
o Marks identifying the use of a special packing for a special
consignment (done by the consignor).

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Marking and Labelling of Dangerous Goods

Labeling:
• The alphabetical list of dangerous goods gives the labels of
danger to be fixed on the parcels.
• The label corresponding to the primary risk first is clearly
indicated for each item or substance, then, for items or
substances presenting a subsidiary risk, the label or labels
corresponding to that risk.
• Only the labels indicating a primary danger must indicate, on
the down corner, the class or division number.

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Marking and Labelling of Dangerous Goods

•  The minimum size of labels are of 100 * 100 mm for all classes
and division of danger, while the minimum size of figures
indicating the divisions 1.4, 1.5 and 1.6 is of 30 mm of high for 5
mm of large.

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Special Requirements of Transportation of Dangerous Goods

By Sea
• The following are supplementary regulations for sea transport of
dangerous goods.
o IFN Code-this is a code which contains additional requirements for ships
engaged in transport of irradiated nuclear fuel material containing Uranium,
Thorium and Platinum. The code is mandatory as per Solas chapter vii part‘d’.
o BC Code-code that governs the transportation of solid bulk cargo on ships and
it originates from Solas chapter vii part ‘a’
o IBC Code-this refers to the international code of construction and equipment of
ships that carry dangerous chemical in bulk. This is according to Solas chapter
vii part ‘b’
o IGC Code-this is the international code for the construction and equipment of
ships carrying gases in bulk according to Solas chapter vii part ‘c’

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Special Requirements of Transportation of Dangerous Goods

By Air
• International Civil Aviation Organization (ICAO) is the UN technical
instructions for the safe transport of dangerous goods by air and is
legally enforceable while IATA regulations are published by the
International air transport association mainly for operational purposes.
• The guidelines cover the following areas;
o General provisions, applicability, classification, packing, marking, labelling,
documentation, identification handling and responsibilities of the various
parties.
• Also important is the consideration for suitability for transportation of
dangerous goods by air, either in cargo or passenger planes

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Special Requirements of Transportation of dangerous goods

By Road
• Within East Africa guidance may be sought by local environmental
protection authorities such as NEMA .
• The traffic and road safety rules will also be a guide.
• In Europe, the conditions relating to the movement of dangerous
goods by road are found in the European Agreement concerning the
international carriage of dangerous goods by road (ADR) OF 1968.
• Hauliers intending to carry dangerous goods to or through European
countries require clearance in form of an ADR certificate after
inspection by the Department of Transport Goods Vehicle Testing
Stations.
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Special Requirements of Transportation of dangerous goods

By Rail
• The merchandise by rail is primarily bulk cargo.
• In East Africa not much enforcement has been seen in this
respect.
• Within Europe they are found in the International regulations
concerning the carriage of dangerous goods by rail (RID) of
1978.

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Learning Activities

1. Review the IATA Live Animals Regulations. Map out the process and
requirements of exporting live animals from the EAC to North America
2. Undertake a search in the Internet on accidents resulting from
dangerous goods in the recent past (10 years) in the following areas:
o
Air Transportation
o
Sea Transportation
o
Land Transportation (Rail or Road)
o
Goods in storage
3. In the above situations, what was the role of a freight forwarder in
regards to handling the dangerous goods? What would have been
done different?

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Learning Activities
4. Vinyl chloride is to be shipped from a manufacturer in China to
a customer in Kigali, Rwanda. Identify the modes that may be
used and the respective packaging requirements.
5. Compare the requirements for shipping small quantities of
corrosive substances by air and truck. Does either mode have
a competitive advantage or disadvantage?

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Self-Assessment Questions

1. What are the documents used in exportation and importation


of special goods?
2. State four requirements for safe transportation of dangerous
goods.
3. Explain what is meant by “Orange Book” in respect to
dangerous goods.
4. What are the roles of a clearing and forwarding agent in
handling special cargo?

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END

The Federation of East African Freight Forwarders Associations (FEAFFA)


HillCrest Court, Waiyaki Way, Slip Road, Westlands, Nairobi
+254 (0)738 150 673, +254 (0)738 165 318
info@feaffa.com
P.O. Box 22694 - 00400, Nairobi, Kenya
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