G/C/W/732  
 
28 October  2016 
(16-5930) Page: 1/9 
Council for Trade in Goods    
 
PROCEDURE FOR THE IN TRODUCTION OF HARMON IZED SYSTEM 2017 CHA NGES  
TO SCHEDULES OF CONC ESSIONS USING THE CO NSOLIDATED  
TARIFF SCHEDULES (CT S) DATABASE  
DRAFT DECISION  
The General Council,  
 
Having regard to  Articles  IV:2 and IX:1 of the WTO  Agreement;  
 
Recallin g that the contracting parties to the GATT  1947, by their Decision of 12  July 19831, agreed 
on a method to introduce the Harmonized System (HS) into schedules of concessions;  
 
Recalling  that the contracting parties to the GATT  1947, by their Decision of 8  October  19912, 
decided on simplified procedures to introduce HS  changes to schedules of concessions;  
 
Noting  that WTO  Members established a Consolidated Tariff Schedule (CTS) database which, 
although not legally binding, could serve as a valuable tool for the verification and certification of 
commitments;  
 
Taking into account  the desire of Members to facilitate and simplify the introduction of HS changes 
into WTO  schedules by making a better use of the CTS  database;  
 
Decides that:  
 
1  PREPARATION AND DIST RIBUTION OF THE DRAFT HS2 017 FILE  
1. The Secretariat shall prepare for Members a comprehensive set of information on the 
Harmonized System 2017  nomenclature (HS2017) changes, which shall include –in electronic 
form–the HS2017  nomenclature at the level of HS six -digit subheading, concordance tables 
between the HS2012 and the HS2017  nomenclatures3, and the layout of the electronic formats to 
be used for the transposition files. This information shall be circulated to all Members no later than 
31 December  2016.  
2. The Secretariat shall transpose the schedules of Members, except for those who undertake to 
prepare their own transposition and submit a notification to this effect no later than 
31 December  2016. Members that decide to undertake their own transposition sha ll submit all the 
required information to the Secretariat –in electronic form –no later than 30  September  2017. A 
description of the required information is provided in Annex  1. 
3. The transposition work shall be based on each Member's latest schedule, as re flected in the 
Consolidated Tariff Schedule (CTS) database. If tariff lines affected by changes in the 
HS2017  nomenclature are not yet certified in the HS2012  nomenclature, then the draft 
HS2012  files shall be used as the basis for tho se tariff lines.  
                                                
1 BISD 30S/17.  
2 BISD 39S/300.  
3 The Secretariat shall take int o account the Recommendation adopted by the Council of the World 
Customs Organization on 27  June 2014, as well as Recommendation adopted on 11  June 2015, which includes 
corrections and complementary amendments to Chapter  44. It shall also take into accoun t subsequent work at 
the Harmonized System Committee of the WCO.  G/C/W/732  
 
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  4. In preparing the HS2017  transposition, and to the extent possible, the scope of the concessions 
and other commitments shall remain unchanged. Any tariff line for which a change in the scope of 
a concession may have occurred due to the complex technical natu re of the transposition shall be 
clearly flagged. Paragraph  5 of Annex  2 and paragraph  15 below describe how these  situations 
shall be addressed.  
Transposition work by the Secretariat  
5. The Secretariat shall introduce into the Member's schedule, as reflec ted in the CTS  database, all 
HS2017  changes, as well as the Recommendation adopted by the Council of the World Customs 
Organization on 11  June 2015, which includes corrections and complementary amendments to 
Chapter  44. The Secretariat shall update all the  tariff codes and descriptions that change due to 
the introduction of the HS2017  nomenclature, including those relating to tariff quotas and export 
subsidies, if applicable. In doing this work, the Secretariat shall abide by the technical procedures 
descri bed in Annex  2 to this Decision. The Secretariat shall prepare, based on the updated 
CTS database in the HS2017  nomenclature, a separate file to reflect the changes in nomenclature 
that were introduced. This separate file shall be prepared as described in Annex  1 and shall be 
considered the "draft HS2017  file" for the purpose of this Decision.  
6. The Secretariat shall send to the Member its draft HS2017  file for examination as soon as the 
technical work has been completed. The date of this communication sha ll hereinafter be referred 
to as the "first date for a file prepared by the Secretariat". Upon receipt of this file, the Member 
shall have the possibility to seek clarifications from the Secretariat and propose changes as laid 
out in Section  2 of these pro cedures . 
Members preparing their own transposition  
7. Members that undertake to prepare their own transposition shall update all the tariff codes and 
descriptions that change due to the introduction of the HS2017  nomenclature, including those 
relating to t ariff quotas and export subsidies, if applicable. In doing this work, they shall abide by 
the technical procedures described in Annex  2 to this Decision. These Members are expected to 
submit to the Secretariat their draft HS2017  files for examination and f inal formatting not later 
than the date provided to this effect in paragraph  2. The date of re ceipt shall hereinafter be 
referred to as the "first date for a file prepared by the Member".  
2  EXAMINATION OF DRAFT  HS2017  FILES AND RELEASE FO R MULTILATERAL REVIE W 
8. Members for whom the Secretariat has prepared a draft HS2017  file are expected to examine 
their file and to provide the Secretariat with a written communication that either approves the file 
(case  1), or provides specific comments on its contents (cas e 2). Such communications should 
reach the Secretariat no later than 60  days following the "first date" for a file prepared by the 
Secretariat.  
9. The Secretariat shall review the draft HS2017  files prepared by Members pursuan t to 
paragraph  7 before their release for multilateral review. If the Secretariat has no comments on the 
file, it shall then be released for multilateral review (case  1). If the Secretariat has comments 
(case  2), these will then be transmitted to the Member concerned no later than 60  days following 
the "first  date" for  a file prepared by the Member.  
10. In case  1, the Secretariat shall release the draft HS2017  file for multilateral review with a 
headnote indicating that it has been approved by the Member.  
11. In case  2, both the Member concerned and the Secretariat shall endeavour to reach a common 
understanding on the issue(s) raised, and reflect any changes accordingly in the draft HS2017 file, 
with a view to releasing it for multilateral review no later than 90 days from the appropria te 
"first date". In this regard,  
(a) When a common understanding is reached and no change is required, the Secretariat shall 
release the original draft HS2017  file for multilateral review with a headnote indicating that 
the file has been approved by the Me mber.  G/C/W/732  
 
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  (b) When a common understanding is reached and changes to the draft HS2017  file are 
required, the Secretariat shall prepare a revised file and release it for multilateral review 
with a headnote indicating that the file has been approved by the Member . 
 
(c)  When a common understanding has not been reached, the Secretariat shall prepare a 
revised draft HS2017  file including the specific changes proposed by the Member and release 
the file for multilateral review. The revised file shall include a headnot e indicating that the 
file has been approved by the Member, and shall also describe the Secretar iat's observations 
on the file.  
 
12. If the Secretariat does not receive any response from the Member concerned within 90  days 
from the appropriate "first date" , the draft HS2017  file will be released for multilateral review with 
a headnote indicating that the Member concerned has neither provided any comments nor 
approved the file.  
3  MULTILATERAL REVIEW PROCESS  
13. Multilateral review of draft HS2017  files release d pursuant to Section  2 of these procedures 
shall take place in the framework of informal dedicated sessions of the Committee on Market 
Access, which shall be scheduled by the Secretariat as required. The Secretariat will post these 
files three or four  times a year on the Tariff Analysis Online (TAO)4 and on dates that should be at 
least six weeks prior to the informal sessions scheduled to this effect. Members shall be notified of 
such postings through a communication by the  Secretariat.  
14. Modifications agreed at the multilateral review sessions shall be incorporated by the 
Secretariat into a revised version of the file, which shall then be resubmitted for multilateral review 
in accordance with paragraph  13. In case a Member has a query or comment concern ing another 
Member's draft HS2017  file, but is unable to attend the meeting at which these changes are to be 
reviewed, it may request the Chair to convey those queries/comments to the other Member at the 
time of the multil ateral review.  
15. Where the scope  of a concession is modified as a result of the transposition in a way that 
impairs its value, consultations and renegotiations pursuant to Article  XXVIII of the GATT  1994 
shall be entered into by the Member concerned.5 The status of discussions and consul tations 
between Members, including Article  XXVIII renegotiations, should be reported  to other Members at 
the multilateral session s to ensure full transparency.  
4  CERTIFICATION OF HS2 017 CHANGES  
16. When there is no objection remaining on a draft HS2017  file at a multilateral review session, 
such file will then be considered approved by the Committee on Market Access. The file will be 
submitted for certification as provided  for in paragraph  17 below, with the exception of any draft 
HS2017  file released under p aragraph  12 where the Member concerned has still neither provided any 
comments nor approved the file. The latter files shall also be submitted for certification as provided 
for in paragraph  17 below, unless the Member concerned submits in writing to the Se cretariat a 
reservation within one month from the date of approval of its draft HS2017  file at the multilateral 
review session.  
17. Members having submitted such a reservation shall also provide in writing to the Secretariat  
details of the specific reasons  no later than 2  months from the date of their initial communication 
containing their reservation. If such specific reasons are not provided within the deadline, the 
certification of their HS2017  file shall take place as provided for in paragraph  18 below.  In case any 
amendment is introduced to the HS2017  file, the multilateral revi ew process provided for in 
Part III shall be resumed for such a file.  
18. The Secretariat shall prepare a draft paper version of the changes, as contained in the 
approved HS2017  file which shall be circulated pursuant to the 1980  Decision on Procedures for 
Modification and Rectification of Schedules of Tariff Concessions (L/4962).  
                                                
4 https://tao.wto.org . 
5 Where a request for renegotiation or consultation has been made under Article  XXVIII of the 
GATT  1994, the Procedures for Negotiat ions under Article  XXVIII (BISD27S/26) shall apply.  G/C/W/732  
 
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  5  PERIODIC REPORT BY T HE SECRETARIAT  
19. The Secretariat shall prepare a periodic report on the status of work, which shall include –to the 
extent possible –the following information: (i)  a list of the Members that will prepare their own 
draft HS2017  files, (ii)  a list of the draft HS2017  files that remain to be prepared by the 
Secretariat, (iii)  the draft HS2017 files that have been completed by the Secretariat and the date 
when they were sent to Members, (iv)  the draft HS2017  files released for multilateral review, 
including a mention of any relevant explanatory note, (v)  the progress made on each draft 
HS20 17 file, including Members having raised reservations, the tariff lines subject to reservation, 
and a summary of the reasons; (vi)  the draft HS2017  files that have been approved in the 
multilateral review and the date of circulation pursuant to the 1980  Procedures ; (vii) the approved 
HS2017  changes that have been certified.  
 
_______________  
 
 
 G/C/W/732  
 
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  ANNEX  1 
DRAFT HS2017  FILE 
1. The draft HS2017  file shall cover all tariff lines under headings with changes introduced by the 
HS nomenclature, as well as the corre sponding concordance tables with the concessions and 
commitments in the HS2012  nomenclature. The Secretariat and Members that undertake to 
prepare their own transposition are expected to provide–as a separate file which will not be 
subject to multilateral review–a complete draft CTS  file in the HS2017  nomenclature. This 
additional file will facilitate the preparation of an updated version of the CTS  database once the 
transposition procedures are finalized and certifi ed. 
 
2. The draft HS2017  file shall conta in for each bound tariff line, inter alia , the following data 
elements:  
 
 Tariff line code in HS2017 nomenclature (including suffix or ex)  
 Product description  
 Base duty (if the final bound duty is not fully implemented at the date of the transposition)  
 Final bound duty  
 Other duties and charges  
 Special safeguard  
 Legal instrument (present and earlier)  
 INR (present and earlier if available in the CTS)  
 Implementation period (if the final bound duty is not fully implemented at the date of the 
transposition)  
 Certification indicator  
 
3. Additional tables containing other relevant concessions and commitments that may be affected 
by the HS2017  transposition (e.g.  tariff quotas and agricultural export subsidies; ITA, 
ITA Expansion, and Pharma special sections ; etc.) sh all also be included.  
 
4. Members who undertake to prepare their own transposition shall submit all the above 
mentioned information in electronic format and follow the layout that will be circulated by the 
Secretariat in accordance with Paragraph  1 of this  Decision.  
 
 G/C/W/732  
 
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  ANNEX  2 
TECHNICAL NOTE ON TR ANSPOSITION PROCEDUR E 
1. The following note describes the relevant technical procedures, which shall be applied in the 
preparation of the draft HS2017  files. 
 
Concession elements  
2. The CTS  database contains not on ly tariff concessions, but also a number of other 
commitments. Although several of these are expressed at the tariff -line level in the different Parts 
and Sections of the schedules, there are some which are not. As a result, not all elements 
currently incl uded in the CTS are required for the HS2017  transposition. It is therefore suggested 
to retain in the draft HS2017  file only those elements which are required for this purpose 
(see Annex  1). 
 
Procedural issues  
3. All affected tariff lines shall be converte d into the HS2017  nomenclature and shall be clearly 
flagged. Detailed tariff line codes and descriptions may have to be adjusted in certain instances 
(e.g. example  1, table  3b) in order to generate a meaningful and intelligible schedule. The 
transposition of any tariff line requiring manual modifications shall also be clearly flagged for 
verification and approval by Members.  
 
Methodological issues  
4. Each new HS2017  subheading/tariff line will be derived from one or more HS2012  tariff lines or 
part of these  lines. If a HS2017  subheading/tariff line matches with two or more HS2012  tariff 
lines and if these lines have the same levels or contents of concessions (e.g. same bound duties, 
INRs, etc.), the original concession elements can be merged into one new con cession at the level 
of the new HS2017  subheading/tariff line. If the concessions of the original HS2012  tariff lines are 
different, the concession elements of the new HS2017  subheading/tariff line should reflect this. In 
this case, the HS2017  subheading/t ariff line should normally be broken down to a more detailed 
level so that the draft HS2017  file reflects fully the same level of concessions as the CTS in 
HS2012.  
 
5. In case where it is unavoidable to combine tariff lines or parts of tariff lines with di fferent 
concessions, there are four  possible methodologies that could be used to arrive at the new rate in 
accordance to the 1983  procedures on a method to introduce the Harmonized System (HS) into 
schedules of concessions1 These are: 1)  applying the lowes t rate of any previous tariff line to the 
whole of the new tariff line, 2)  applying the rate previously applied to the tariff line with the 
majority of trade, 3)  applying the trade weighted average rate of duty for the new line, or 
4) applying the arithmet ic average of the previous rates of duty where no basis exists for 
establishing reasonably accurate trade allocations. In the context of the HS2007  transposition, the 
Secretariat suggested to use the duty rate with the most frequent occurrence (i.e. the mo de) for 
special cases.2 If any of the above methodologies is used, the selected option shall be specified at 
the tariff line level. The choice of methodology shall also be explained, except for those situations 
in which the first option is selected (i.e. s electing the lowest duty). If options 2)  or 3) are selected, 
the Member concerned shall also supply the necessary import data (last three  years available). 
The implication of a combination of tariff lines on other elements of the concessions, such as INRs,  
ODCs and SSGs, shall also be taken into account by Members to assess whether the value of the 
concession has been impaired and GATT  Article  XXVIII negotiations need to be followed 
(see paragraph  15 above).  
 
6. Examples  2 show that the "collapsing" of tari ff lines to HS  6-digit subheadings significantly 
simplifies the tariff structure and the workload involved. It requires less manual intervention and 
is, thus, less likely to be controversial. Having a maximum number of concessions defined at the 
                                                
1 Decision of 12  July 1983, BISD 30S/17.  
2 This was the case of HS2007  Heading  84.86. See paragraph  1.4 of JOB/MA/108 . G/C/W/732  
 
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  level of H S 6-digit subheadings would also make it easier to transpose the new schedule into any 
new national applied schedule based on HS2017  nomenclature.3 
 
Reference documents  
7. The transposition shall be based on the information provided by the World Customs 
Organization, which is included in the WTO  documents  G/MA/W/121, G/MA/W/122, and 
G/MA/W/122/Corr.1. A detailed concordance table between the HS2012 and the 
HS2017  nomenclatures shall be prepared by the Secretariat usin g these documents as the basis.  
 
Example  1: Split  
 
8. HS2012 subheading 0805.20 is split into three new HS2017  subheadings due to the 
amendments adopted as a  result of the proposal by FAO:  
Table 1.a HS 2012         Table 1.b HS 2017  
HS 
code  Product description   HS 
code  Product description  
0805 Citrus fruit, fresh or dried.    0805 Citrus fruit, fresh or dried . 
0805.10  - Oranges   0805.10  - Oranges  
0805.20  - Mandarins (including tangerines 
and satsumas); clementines, 
wilkings and similar citrus hybrids    - Mandarins (including tangerines 
and sat sumas); clementines, 
wilkings and similar citrus hybrids  
   0805.21  -- Mandarins (including tangerines 
and satsumas)  
   0805.22  -- Clementines  
   0805.29  -- Other  
0805.40  - Grapefruit, including pomelos   0805.40  - Grapefruit , including pomelos  
0805.50 - Lemons (Citrus limon, Citrus 
limonum) and limes (Citrus 
aurantifolia, Citrus latifolia)   0805.50  - Lemons ( Citrus limon, Citrus 
limonum ) and limes ( Citrus  
aurantifolia, Citrus latifolia ) 
0805.90  - Other   0805.90  - Other  
 
9. In the CTS database, a M ember has four national tariff lines under HS2012 
subheading  0805.20:  
Table 2     CTS in HS2012  
TL code  Product description  Bound 
duty 
0805 Citrus fruit, fresh or dried.   
0805.20  - Mandarins (including tangerines and 
satsumas);  
  clementines, wilkings a nd similar citrus 
hybrids   
0805.2010  -- Mandarins (including tangerines and 
satsumas)  10 
0805.2020  -- Clementines  20 
0805.2030  -- Wilkings  30 
0805.2090  -- Other  30 
 
10. In theory, all four  national tariff lines could go under each of the three new 
HS2017 subheadings. If the conversion is done by a computer program, it would generate 
12 possible HS2017  tariff lines. However, not all of the 12  new national tariff lines are appropriate 
when the product descriptions are considered. For instance, HS2012  national tariff line 
"0805.2010  – Mandarins (including tangerines and satsumas)" cannot not be kept under the 
HS2017  subheading "0805.22 - Clementines", and it should stay only under "0805.2100 --
Mandarins (including tangerines and satsumas)". Similarly, the  HS2012  national tariff line  
"0805.2020 -- Clementines" can only stay under HS2017  subheading "0805.2200 - Clementines". 
Therefore, each tariff line generated by computer program shall be reviewed manually to 
                                                
3 This would not preclude that concessions defined only at the level of subheadings c ould be broken 
down again into tariff line detail by the Members concerned.  G/C/W/732  
 
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  determine whether it shall stay under the corre sponding new HS2017  subheading. In this 
example, Table  3 shows the tariff lines which are retained under each HS2017  subheadings and 
their corres ponding tariff lines in HS2012.  
 Table 3.a   CTS in HS2012        Table 3.b   CTS in HS2017  
TL code  Product desc ription  Bound 
duty  TL code  Product description  Bound 
duty 
0805 Citrus fruit, fresh or 
dried.    0805 Citrus fruit, fresh or 
dried.  
0805.1000  - Oranges    0805.1000  - Oranges   
0805.20  - Mandarins (including 
tangerines and 
satsumas); 
clementines, wilkings  
and similar citrus 
hybrids    0805.2  - Mandarins (including 
tangerines and 
satsumas); 
clementines, wilkings 
and similar citrus 
hybrids  :  
0805.2010  -- Mandarins (including 
tangerines and 
satsumas)  10  0805.2100  -- Mandarins 
(including 
tangerines and 
satsumas)  10 
0805.2020  -- Clementines  20  0805.2200  -- Clementines  20 
0805.2030  -- Wilkings  30  0805.2900  -- Other  30 
0805.2090  -- Other  30     
0805.4000  - Grapefruit, including 
pomelos    0805.4000  - Grapefruit , including 
pomelos   
0805.5000  - Lemons ( Citrus 
limon, Citrus limonum) 
and limes (Citrus 
aurantifolia, Citrus 
latifolia)    0805.5000  - Lemons ( Citrus limon, 
Citrus limonum ) and 
limes ( Citrus  
aurantifolia, Citrus 
latifolia )  
0805.9000  - Other    08059.000  - Other   
 
11. A concordance table between  the HS2012 and HS2017  nomenclature at the tariff line level 
would be constructed as follows:  
Table 4.a  Correlating HS2012 to HS2017      Table 4.b Correlating HS2017 to HS2012  
HS2012  e
x Bound 
duty 
HS12  HS2017  e
x Bound 
duty 
HS17   HS2017  e
x Bound 
duty  
HS17 HS2012  e
x Bound 
duty 
HS12  
0805.2010   10 0805.2100   10  0805.2100   10 0805.2010   10 
0805.2020   20 0805.2200   20  0805.2200   20 0805.2020   20 
0805.2030   30 0805.2900  x 30  0805.2900  x 30 0805.2030   30 
0805.2090   30 0805.2900  x 30  0805.2900  x 30 0805.2 090  30 
 
Example 2: Merger  
 
12. Two HS2012  subheadings are merged to one new HS2017  subheading:  
     Table 5.a HS 2012           Table 5.b HS 2017  
HS code  Product description   HS 
code  Product description  
3705 Photographic plates and film, 
exposed and de veloped, other 
than cinematographic film.   3705.00  Photographic plates and film, 
exposed and developed, other 
than cinematographic film  
3705.10  - For offset reproduction     
3705.90  - Other     
 G/C/W/732  
 
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  13. In the CTS database, a Member has four  tariff lines lis ted under the two subheadings:  
Table 6   CTS in HS2012  
TL code  Product description  Bound duty  
3705 Photographic plates and film, exposed 
and developed, other than 
cinematographic film.   
3705.10  - For offset reproduction   
3705.1010  -- Containing news or e ducational 
material  10 
3705.1090  -- Other  10 
3705.90  - Other   
3705.9010  -- Microfilms  10 
3705.9090  -- Other  10 
 
14. If the first six  digits of the HS2012  tariff lines are substituted by the codes of new 
HS2017  subheadings:  
Table 7.a HS2012            Table 7.b HS2017  
TL code   TL code  Product description  
3705.1010  Substitute first 6 digits with 
3705.00  
 3705.0010  -- Containing news or educational 
material  
3705.1090  3705.0090  -- Other  
3705.9010  3705.0010  -- Microfilms  
3705.9090  3705.0090  -- Other  
 
15. If all national tariff lines under a HS  6-digit subheading have the same duties (and other 
concession elements), these lines could be collapsed to the HS  6-digit subheading level and the 
transposition exercise will be significantly simplified as sho wn below. According to Table  6, all 
HS2012  tariff lines have a duty of 10%. Therefore, the new HS2017  tariff lines could be collapsed 
to one tariff line 3705.0000 with bound duty 10%.  
   Table 8.a HS 2017 before collapsing           Table 8.b HS 2017 after  collapsing  
TL code  Product description  Bound 
duty  TL code  Product 
description  Bound 
duty 
3705. 0010 - For offset reproduction, 
containing news or 
educational material  10  3705.0000  Photographic 
plates and film, 
exposed and 
developed, other 
than 
cinemat ographic 
film 10 
3705. 0090 - For offset reproduction, 
other  10 
3705. 0010 - Microfilms  10 
3705. 0090 - Other  10 
 
16. A concordance table between the HS2012 and HS2017  nomenclature at the tariff line level 
shall be constructed as follows:  
Table 9 .a  Correlating HS2012 to HS2017          Table 9.b   Correlating HS2017 to HS2012  
HS2012  e
x Bound 
duty 
HS12  HS2017  e
x Bound 
duty 
HS17   HS2017  e
x Bound 
duty  
HS17  HS2012  e
x Bound 
duty 
HS12  
3705.1010   10 3705.0000  x 10  3705.0000  x 10 3705.1010   10 
3705.1090   10 3705.0000  x 10  3705.0000  x 10 3705.1090   10 
3705.9010   10 3705.0000  x 10  3705.0000  x 10 3705.9010   10 
3705.9090   10 3705.0000  x 10  3705.0000  x 10 3705.9090   10 
 
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