GOVERNMENT

SOCIALIST REPUBLIC OF VIETNAM

No. 24-2003-ND-CP

Independence - Freedom - Happiness

Hanoi, 13 March 2003

 

DECREE
PROVIDING DETAILED REGULATIONS FOR IMPLEMENTATION OF ORDINANCE ON ADVERTISING


The Government

Pursuant to the Law on the Organization of the Government dated 25 December 2001;

Pursuant to Ordinance 39-2001-PL-UBTVQH10 on Advertising dated 16 November 2001;

On the proposal of the Minister of Culture and Information;


Decrees:


CHAPTER I
General Provisions


Article 1

1. Vietnamese organizations and individuals and foreign organizations and individuals conducting advertising activities; and advertisements about business, goods and services (including profit-making services and non profit-making services) in the territory of Vietnam must comply with the provisions of the Ordinance on Advertising, the provisions of this Decree, and with other provisions of relevant laws.

2. Political information shall not fall within the governing scope of the Ordinance on Advertising and of this Decree. Subscription 51 (1/2003) 30 April 2003

Article 2

The following terms in the Ordinance on Advertising shall have the meanings ascribed to them hereunder:

1. Advertising of profit-making services means advertising about economic or social services aimed at generating profit for the organization or individual providing the services.

2. Advertising of non profit-making services means advertising about services which implement social policies and information aimed at announcing or sending messages, or classified advertising.

3. Amount of advertising time means the amount of time for transmission of advertisements on a television or radio station; or the amount of time for advertisements on a film program, a visual video or disk, a music tape or disk, or a program of cultural or sporting activities.

4. Proportionate amount of advertising time means the amount of time for transmission of advertisements calculated as a percentage of the total amount of time for transmission of programs on one radio station or one television channel during one day, or the amount of time for advertisements compared to the total duration of one film program, one visual video or disk, one audio tape or disk, or a program of cultural or sporting activities.

5. Area for advertisements means that part of the area on which advertisements are printed or published on the surface of a printed newspaper; the area on which an advertising product is expressed on a billboard, placard or panel; the area of drawings or sketches on a means of transportation, an illuminated air-borne or underwater object, or another mobile object, or any other similar form in which an advertising product is expressed.

6. One advertising round means the duration of consecutive publication of one advertising product in a newspaper, of consecutive transmission of an advertisement on a radio or television station, or of consecutive display of an advertisement on a banner, an illuminated air-borne or underwater object. or on another mobile object.

7. Program exclusively for advertising means a period of time of consecutive transmission of advertising products on a radio or television station where transmission time exceeds ten (10) minutes.

8. Process of advertising activities means the implementation of a marketing strategy, the promotion of advertising, consultancy on advertising, carrying out an advertising idea, broadcasting an advertisement, or introducing advertising products to consumers.

Article 3

A number of the acts which are strictly prohibited in advertising activities as stipulated in article 5 of the Ordinance on Advertising are provided for in more specific detail as follows:

1. Advertising in the nature of discrimination against the Vietnamese people or racial discrimination, or of violation of freedom of religious belief or religion.

2. Advertising in the nature of arousing violence, or advertising which is shocking or which uses unhealthy language.

3. The use of images of leaders of the Party or of the State of Vietnam.

4. Advertising which is incorrect in terms of the quality of goods and services, or incorrect in terms of the address of a manufacturing, trading or services establishment.

5. Coercive advertising in any form.

6. Advertising which restricts the vision of people taking part in traffic; which adversely impacts on seriousness at working locations of State bodies; which uses sound at noise levels beyond the permissible limits under the Vietnamese standards.

7. Advertising which speaks ill of, makes comparisons or causes confusion with another manufacturing, trading, goods or services establishment; which uses the appellation or image of another organization or individual to advertise without the approval of such organization or individual.

8. Advertising products being curative medicines for humans which are sold under prescription of a doctor, advertising unregistered medicines or medicines the registration of which has expired or which have been removed from the list of medicines permitted to be used, or registered medicines the circulation of which has been suspended; advertising medical equipment and instruments not yet permitted to be used, or services not yet permitted to be provided in Vietnam.

9. Advertising other goods and services which the law prohibits to be advertised.


CHAPTER II
Advertising Activities


Article 4

1. Information advertising business activities must be truthful and accurate, and correct with respect to the registered business scope and business line.

2. Information advertising profit-making goods and services must be truthful and accurate, and correct with respect to the specifications, quality, effect, trademark, model, type, packaging, origin, method of service, use expiry, preservation expiry and warranty period.

3. Information advertising non profit-making services must be truthful and accurate, and correctly reflect the requirements, ability and quality of the services.

Article 5

1. Advertising products expressed on billboards, placards, panels, banners or other similar forms must state the number of the permit, the duration of the permit, and the name of the applicant for permission to conduct the advertising.

2. Advertising products expressed on posters must state the number of the publishing permit, the name of the applicant for permission to publish, the name of the printing establishment and the quantity printed.

3. Advertising products expressed in newspapers must be on separate sections or separate pages and must specify that it is advertising information; advertisements on a radio or television station must include a verbal or written announcement that it is advertising information.

Article 6

1. A newspaper must have a permit issued by the Ministry of Culture and Information to print a supplementary advertising page or an advertising supplement. The number of pages of an advertising supplement shall not exceed the number of pages of the main newspaper and may not be included in the selling price.

2. Advertisements may not appear on the front cover or first page of daily newspapers, periodical publications, magazines, special issues or supplements, with the exception of newspapers exclusively for advertising.

Article 7

1. Advertising shall not be permitted immediately after signature tunes or icons of radio and television programs, except for programs presenting films, or performances, sporting or entertainment games.

2. Each round of broadcasting of one advertising product on a television or radio station shall not exceed eight days, except for the following cases:

(a) Sponsored advertising connected with an event which continuously takes place for more than eight days, when the duration of such continuous event shall be deemed to be one advertising round;

(b) Advertising of non profit-making services aimed at implementing social policies connected with an event which continuously takes place for more than eight days, when the duration of such continuous event shall be deemed to be one advertising round.

Article 8

1. Any continuous advertisement in excess of ten (10) minutes on a radio or television station shall be deemed to be a program exclusively for advertising and must be permitted by the Ministry of Culture and Information.

2. It shall be prohibited to interrupt any feature film program on television to advertise on more than two occasions, and each occasion shall not exceed five minutes; and it shall be prohibited to advertise on more than four occasions during an entertainment program on a radio or television station, and each occasion shall not exceed five minutes.

3. An advertisement of business operations or of goods and services by one advertiser or by one person conducting the business of advertising services shall not be permitted to exceed fifty (50) per cent of the duration of each advertising occasion on a radio or television station.

Article 9

The head of a press agency, the editor-in-chief or the general director or director shall be responsible for the contents, form, position, duration and area of advertisements in its facility.

Article 10

Any body, organization or enterprise conducting the business of advertising services on a computer information network must have a permit issued by the Ministry of Culture and Information and must have a business registration certificate for advertising services.

Article 11

1. Advertisements in publications shall be published in accordance with a plan for which the director of the publishing firm shall be responsible for the advertising products and the position of the advertisements in such publication.

2. Advertisements in publications in the category subject to issuance of a publishing permit must be permitted by the State administrative body for publishing in accordance with the Law on Publishing.

Article 12

Advertisements on billboards, placards, panels, display screens, banners, illuminated air-borne or underwater objects, or other mobile objects and on other similar forms which hang or are placed or affixed or erected in outdoor areas or in public places shall be regulated as follows:

1. They shall not be permitted to obscure more than ten (10) per cent of the area of an advertising product which was placed earlier and the duration of which has not yet expired, or be placed in front of or at a distance of two hundred (200) metres from or at right angles in the middle of such earlier advertisement.

2. They shall not be placed in the safety corridors of traffic, on dike embankments, or in the safety corridors of national power grids; they shall not be permitted to obscure warning signs, traffic signal lights or notices with instructions to the public.

3. Outdoor advertisements with a large area which are inconsistent with urban master planning, the safety of society, aesthetics, the landscape and the environment shall be restricted in urban areas.

Article 13

Advertising products at festivals, conferences, seminars, artistic performances, cultural exchanges and sporting and physical education events shall not be permitted to be hung, placed, affixed or erected equal to or higher than the logo or name of such program; and the size of the letters printed on the advertising product must be smaller than the size of the letters of the name of such program.

Article 14

Advertisements on other advertising means such as parasols, trolleys, packaging, awnings, ribbon flags and other objects shall not require an application for a permit but must comply with the laws on advertising and other relevant provisions of the law.

Article 15

1. An organization or individual wishing to conduct advertising services business must have a business registration certificate in accordance with law.

2. Within a time-limit of five working days, an organization or individual conducting advertising services business and establishing a branch or representative office in another province or city must notify the provincial level Business Registration Office and the Department of Culture and Information where the branch or representative office is being established.

The notification must contain:

(a) The name and address of the head office of the enterprise;

(b) The business trade or profession;

(c) The name and address of the branch or representative office;

(d) The contents and scope of operation of the branch or representative office;

(dd) The full name and address of the person heading the branch or representative office.

3. A business registration certificate for advertising services issued by a district-level or equivalent Business Registration Office shall only permit the advertising services business to be conducted within the province or city under central authority in which such district-level or equivalent Business Registration Office is located.

Article 16

An organization or individual advertising non profit-making services must present documents proving the truthfulness and accuracy of information which is advertised when the person conducting the business of advertising services or the advertising distributor so requests.

Article 17

1. Organizations and individuals advertising about business, goods or services must have a business registration certificate in accordance with law.

2. With respect to an advertisement of products or goods on the list to which Vietnamese standards compulsorily apply and for which there must be a certificate of compliance, the competent State body must have issued a certificate of compliance with Vietnamese standards.

3. With respect to an advertisement of products or goods on the list to which industry or other standards compulsorily apply and for which there must be a certificate of compliance, the competent State body must have issued a certificate of compliance with such standards.

4. The Ministry of Health, or a Department of Health if so delegated by the Ministry of Health, must be notified of the full contents of any advertising product about medical drugs, raw materials for making up medical drugs, cosmetics, vaccines, biological immunization products, medical equipment and instruments, medical services and foodstuffs. If it does not approve any such advertising product, the Ministry of Health or Department of Health must notify the advertiser or person conducting the business of advertising services.

If the Ministry of Health or Department of Health does not reply within a time-limit of ten (10) working days from the date of receipt of written notification, the advertiser or person conducting the business of advertising services shall be entitled to make the advertisement with the contents as notified.

Only medical drugs which are on the list of medical drugs permitted to be advertised as issued by the Ministry of Health may be advertised.

5. Any advertisement for a product which is a substitute for mother's milk must comply with the laws on trading and use of products being substitutes for mother's milk.

6. The Ministry of Agriculture and Rural Development must be notified of the full contents of any advertising product about biological products servicing plant cultivation and livestock breeding, feed for livestock, veterinary drugs, plant protection agents, fertilizer, fertilizer products, seed and seedlings. If it does not approve the contents of the notification, the Ministry of Agriculture and Rural Development shall notify the advertiser or person conducting the business of advertising services.

If the Ministry of Agriculture and Rural Development does not reply within a time-limit of ten (10) working days from the date of receipt of written notification, the advertiser or person conducting the business of advertising services shall be entitled to make the advertisement with the contents as notified.

7. Any advertisement for a patent, utility solution, industrial design, goods trademark, appellation of origin of goods, geographical instructions, commercial name, author's rights or related rights must be accurate with respect to any information on the status of protection of same pursuant to the law and protection of industrial ownership or author's rights.

Article 18

When advertising, an organization or individual manufacturing or trading in a number of lines of business or types of products but with the one common trademark (trade name) must specify the contents of the line of business or the type of product or goods it needs to advertise.

Article 19

1. The person heading an agency, organization or enterprise which is permitted to provide advertising services on the internet shall be responsible for any advertising product appearing on the computer information network. The owner of the facility shall be responsible for advertisements on a screen in a public place. The following provisions must be complied with:

(a) In respect of advertising on a computer information network, the advertising product must be forwarded to the Ministry of Culture and Information at least ten (10) working days in advance.

(b) In respect of advertising on a screen in a public place, the advertising product must be forwarded to a Department of Culture and Information at least ten (10) working days in advance.

If it does not approve any such advertising product, the Ministry of Culture and Information or Department of Culture and Information shall provide written notice with reasons within a time-limit of five working days from the date of receipt of such advertising product. If no reply is received within the above time-limit, the advertising product which has been forwarded may appear.

2. The time-limit applicable to advertisements on placards, billboards, panels and means of transportation shall be three years; if upon expiry of that period it is wished to continue the advertisement, permission must be granted by the Department of Culture and Information.

If there is any change in the position, size or advertising product, permission must be granted by the Department of Culture and Information.

3. With respect to advertising by way of banners, illuminated air-borne or underwater objects, or other mobile objects about an event with a fixed duration, advertising shall be permitted for the whole duration of the event and no more than five working days prior to and no more than two working days after.

With respect to an advertisement about an event with an unfixed duration, the duration of one advertising round shall not exceed fifteen (15) working days, and the interval between each round shall be at least eight working days.

Article 20

The Ministry of Culture and Information or Department of Culture and Information shall issue a permit to undertake an advertisement within a time-limit of no later than ten (10) working days from the date of receipt of a complete and valid application file. If it does not issue a permit, the Ministry or Department shall provide a written reply with reasons.


CHAPTER III
Advertising Activities with a Foreign Element


Article 21

Vietnamese organizations and individuals with a business registration certificate issued by a provincial-level Business Registration Office shall be permitted to cooperate in investing with a foreign organization or individual to conduct advertising services business in the form of a business co-operation contract or a joint venture and may only commence operation after they have been issued with an investment licence by the competent State body.

Article 22

1. The Ministry of Planning and Investment shall be responsible to receive and forward an application file to the Ministry of Culture and Information and relevant State bodies to obtain their opinions during the evaluation of a project with foreign invested capital in the advertising sector.

2. The Ministry of Culture and Information shall provide its opinion during evaluation of projects with foreign invested capital in the advertising sector.

3. Within a maximum time-limit of fifteen (15) working days from the date of receipt of a complete and valid file, the Ministry of Culture and Information must provide its written response to the competent State investment licence-issuing body.

4. An evaluating opinion on a project with foreign invested capital shall include the following items:

(a) The degree to which the project is consistent with advertising master planning;

(b) The technical and technological standard of the advertising by the foreign organization or individual;

(c) Socio-economic benefits;

(d) Advertising scope and sector;

(dd) Other regulations of the laws on advertising.

Article 23

Organizations and individuals having been issued with a foreign investment licence must provide written notice to the Department of Culture and Information in the location where the head office is located at least five working days prior to the date of commencement of operations, and must enclose a (notarized) copy of the foreign investment licence.

Article 24

1. Foreign organizations and individuals conducting advertising business services may be issued with a licence to establish a representative office in Vietnam if they already have business registration for advertising services or other similar lawful papers in accordance with the regulations of the country of nationality of such organizations or individuals.

2. The people's committee in the province or city under central authority where a foreign organization or individual conducting advertising business services applies for establishment of a representative office shall be responsible to issue, amend, supplement or revoke such a licence for the advertising sector.

3. The rights and obligations of representative offices and of persons working therein shall be:

(a) To exercise rights and discharge responsibilities in accordance with the laws on advertising;

(b) To operate only in accordance with the specific provisions of the licence for establishment;

(c) To engage Vietnamese and foreign employees, who must pay tax in accordance with the laws of Vietnam;

(d) To open accounts exclusively for payments in foreign currency and in Vietnamese dong sourced from foreign currency at a bank authorized to operate in Vietnam and only to use such accounts for the activities of the representative office, which shall have its own seal in accordance with the laws of Vietnam;

(dd) To provide annual reports on the activities of the representative office to the licence-issuing body.

Article 25

1. A foreign organization or individual conducting advertising business services may be issued with a licence to establish a branch in Vietnam if it satisfies all of the following conditions:

(a) It has valid business registration for advertising services or similar lawful papers in accordance with the regulations of the country in which the head office of the organization or individual is located;

(b) It has operated for at least five years as from the date of its business registration and has had a representative office in Vietnam for at least seven years as from December 2001 and is not in breach of the laws of Vietnam.

2. The Ministry of Culture and Information shall be responsible to issue, amend or revoke licences to establish branches in the advertising sector.

3. The rights and obligations of branches and of persons working therein shall be:

(a) To operate in accordance with the provisions of the licence;

(b) To engage Vietnamese and foreign employees, who must pay tax in accordance with the laws of Vietnam;

(c) To implement accounting systems and only to apply other commonly-used accounting systems in accordance with the laws of Vietnam;

(d) To provide annual reports on the activities of the branch to the licence-issuing body, including financial reports audited by a Vietnamese auditing organization or by an independent auditing organization licensed to operate in Vietnam. In necessary cases, and upon written request by competent bodies made in accordance with the laws of Vietnam, a branch shall be obliged to report or provide documents or an explanation on matters relating to its operations.

Article 26

1. An application file to establish a representative office or a branch shall comprise:

(a) An application from the foreign organization or individual conducting advertising business services for the issuance of a licence to establish a representative office or branch (in the sample form issued by the Ministry of Culture and Information);

(b) Copy business registration certificate or other similar lawful papers in accordance with the law of the country of origin, certified by the competent body of the foreign country, and translations in Vietnamese. Such copies must be notarized by a notary public of the country of origin, or authenticated by a Vietnamese diplomatic representative or consulate in the foreign country.

2. The foreign organization or individual conducting advertising business services shall forward the application file to establish a representative office or a branch to the licence-issuing body stipulated in article 24 or 25 of this Decree.

3. Within a time-limit of fifteen (15) working days from the date of receipt of a complete and valid application file, the licence-issuing body shall issue a licence to establish a representative office or branch. In the case of an incomplete or invalid application file, the licence-issuing body shall notify the foreign organization or individual conducting advertising business services to amend and complete the file within a time-limit of three working days from the date of receipt of the file.

4. A licence shall specify the contents and duration of operation of the representative office or branch.

5. Within a time-limit of forty five (45) working days from the date of issuance of a licence, the representative office or branch must commence operations and provide written notification to the licence-issuing body of its office address and the numbers of both Vietnamese and foreign employees working for the representative office or branch.

6. A representative office or branch of a foreign organization or individual conducting advertising business services must notify the licence-issuing body of any of the following changes: its name or nationality; the full name of its representative; the number of foreigners working for the representative office or branch; its office address; and the contents of operation.

Article 27

1. A licence to establish a representative office or a branch shall be revoked in the following cases:

(a) When a licence has expired but the operation still continues;

(b) The operation is for an incorrect purpose or is inconsistent with the contents specified in the licence;

(c) The name of the representative office is used to conduct an advertising services business;

(d) There is a breach of the laws of Vietnam on advertising activities or other related laws.

2. A representative office or a branch shall terminate its operation in the following cases:

(a) Upon the request of the foreign organization or individual conducting advertising business services and having the representative office or branch in Vietnam;

(b) When the licence-issuing body makes a decision on revocation in accordance with the laws of Vietnam.

3. In the case of termination of operation pursuant to clause 2(a) of this article, the foreign organization or individual conducting advertising business services must provide written notice of the termination of operation of its representative office or branch to the licence-issuing body within a time-limit of at least thirty (30) working days prior to the date of termination of operation, and must return its licence to the licence-issuing body.

Article 28

Vietnamese organizations and individuals conducting advertising services business shall be entitled to advertise their business operations and their goods and services abroad in accordance with the laws of the foreign country and the laws of Vietnam on advertising.


Chapter VI
State Administration of Advertising


Article 29

The Ministry of Culture and Information shall be responsible to the Government to exercise the function of State administration of advertising throughout the whole country, with the following duties and powers:

1. To draft for submission to the Government master planning, plans and policies on advertising activities;

2. To draft for submission to the Government and to promulgate pursuant to its own powers legal instruments on advertising activities;

3. To issue, amend, supplement and revoke licences to establish branches to foreign organizations and individuals conducting advertising business services; to issue permits to advertise on computer information networks, permits for publishing supplementary advertising pages or advertising supplements to appear in printed newspapers, or for channels or programs exclusively for advertising on television or radio stations;

4. To organize and provide training and development to improve professional standards and management of advertising activities;

5. To inspect and check compliance with the law in advertising activities; to resolve complaints and denunciations, and to deal with conduct in breach of the laws on advertising;

6. To organize and guide the implementation of the laws on advertising;

7. To organize and administer international co-operation in the advertising sector;

8. To contribute opinions during the evaluation of projects with foreign invested capital in the advertising sector.

Grass-roots Divisions of Culture and Information shall assist the Ministry of Culture and Information to exercise the function of State administration of advertising throughout the whole country.

Article 30

1. The Ministry of Trade shall, within the scope of its duties and powers, be responsible to co-ordinate with the Ministry of Culture and Information in exercising State administration of advertising of commercial goods and services and in drafting for submission to the Government to promulgate a list of commercial goods and services prohibited to advertise.

2. The Ministry of Health shall, within the scope of its duties and powers, be responsible to co-ordinate with the Ministry of Culture and Information in exercising State administration of advertising of medical drugs, raw materials for making up medical drugs, cosmetics, vaccines, biological immunization products, medical equipment and instruments, medical services and foodstuffs; and shall publish a list of drugs which have been removed from the list of medicines permitted to be used and registered medicines the circulation of which has been suspended; and in drafting for submission to the Government to promulgate a list of drugs prohibited to be advertised.

3. The Ministry of Agriculture and Rural Development shall, within the scope of its duties and powers, be responsible to co-ordinate with the Ministry of Culture and Information in exercising State administration of advertising about biological products servicing plant cultivation and livestock breeding, feed for livestock, veterinary drugs, plant protection agents, fertilizer, fertilizer products, seed and seedlings.

4. The Ministry of Science and Technology shall, within the scope of its duties and powers, be responsible to co-ordinate with the Ministry of Culture and Information in exercising State administration of advertising about objects of intellectual property rights.

5. The Ministry of Planning and Investment shall, within the scope of its duties and powers, be responsible to evaluate foreign investment projects in the advertising sector.

6. Ministries, ministerial equivalent bodies and Government bodies shall, within the scope of their respective duties and powers, be responsible to co-ordinate with the Ministry of Culture and Information in exercising State administration of advertising.

Article 31

People's committees of provinces and cities under central authority shall undertake the following tasks:

1. To issue, amend, supplement and revoke licences to establish representative offices for foreign organizations and individuals conducting advertising business services;

2. To direct Departments of Culture and Information to undertake the following tasks:

(a) Master planning of advertising activities;

(b) Master planning of the areas, streets and locations where advertising is permitted;

(c) Master planning of the scale, size and quantity of the types of advertising in each area, ensuring traffic safety, urban beauty, safety of fire fighting and prevention and building structure;

(d) To issue advertising permits as stipulated in article 16.2 of the Ordinance on Advertising;

(dd) To organize and guide the implementation of the laws on advertising within their respective localities;

(e) To organize and provide training and development to improve professional standards and management of advertising activities;

(g) To preside over and co-ordinate with local functional bodies in organizing inspections and checks, to resolve complaints and denunciations, and to deal with breaches within the scope of authority;

(h) To provide periodical reports to the Ministry of Culture and Information on the issuance of advertising permits, on master planning, on inspections and checks and on advertising activities within their respective localities.

Article 32

The State Inspectorate for Culture and Information shall exercise the function of specialized inspectorate of the advertising industry in accordance with the laws on inspections, the Ordinance on Advertising, and other relevant laws.

Article 33

Any organization or individual in breach of the law on advertising shall, depending on the nature and seriousness of the breach, be subject to an administrative penalty; any individual who commits a serious breach may be criminally prosecuted and, if he or she causes damage, compensation shall be payable in accordance with law. Dealing with administrative breaches in advertising activities must comply with the laws on dealing with administrative offences in the culture and information sector.


Chapter V
Implementing Provisions


Article 34

Business registration certificates for advertising services and advertising permits which were issued prior to the effectiveness of this Decree shall, if not yet expired and not inconsistent with the provisions of the Ordinance on Advertising and the provisions of this Decree, remain valid for implementation.

Article 35

1. This Decree shall be of full force and effect after fifteen (15) days from the date of publication in the Official Gazette.

2. The following are hereby repealed: Decree 194-CP of the Government dated 31 December 1994 regulating advertising activities in the territory of Vietnam; Chapter III (from article 11 to 25) of Decree 32-1999-ND-CP of the Government dated 5 May 1999 on Commercial Promotions and Advertisements and Commercial Fairs and Exhibitions.

Any previous provisions which are inconsistent with the provisions of this Decree are hereby repealed.

Article 36

Ministers, heads of ministerial equivalent bodies, heads of Government bodies, and chairmen of people's committees of provinces and cities under central authority shall be responsible for implementation of this Decree.


For the Government
Prime Minister
PHAN VAN KHAI

 
 
 
 
 
 
 
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