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Discussion Starter · #1 · (Edited)
If you haven't seen it yet. Start here first-http://controversialtimes.com/news/breaking-obama-signs-new-gun-control-executive-order-puts-gunsmiths-out-of-business/?utm_source=SR

It appears the EO just assigned control to the DDTC and ITAR then their defnitions apply instead of the ATF.

United States Department of State
Bureau of Political-Military Affairs Directorate of Defense Trade Controls Washington, D.C. 20520-0112

July 22, 2016
Applicability of the ITAR Registration Requirement to Firearms Manufacturers and Gunsmiths
Summary:
The Directorate of Defense Trade Controls (DDTC) has reviewed and consolidated policy guidance about whether various activities related to firearms constitute manufacturing for International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130) purposes and require registration with DDTC and payment of a registration fee. DDTC has found that many - but not all - traditional gunsmithing activities do not constitute manufacturing for ITAR purposes and, therefore, do not require registration with DDTC. The following guidance is confined to DDTC's ITAR implementation. You must also comply with all other relevant laws.
Background:
The Arms Export Control Act (AECA) (22 U.S.C. § 2751 et seq.) and the Gun Control Act (GCA) (18 U.S.C. § 921 et seq.) are two distinct U.S. laws that concern manufacturing of firearms. The GCA requires firearm manufacturers to obtain licenses as manufacturers (known as Federal Firearms Licenses (FFLs)) from the Department of Justice's Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The AECA, in relevant part, requires manufacturers of defense articles, including certain firearms, to register with the Department of State, Directorate of Defense Trade Controls. Because the GCA is intended to cover a broader scope of domestic activity than the AECA, the ATF regulations define the term "firearm" more broadly than the ITAR. As a result, not every firearm controlled by the ATF regulations is also controlled by the ITAR.
The AECA's statutory requirement for firearms manufacturers to register with DDTC is implemented in Part 122 of the ITAR:
§122.1 Registration requirements.
(a) Any person who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles, or furnishing defense services, is required to register with the Directorate of Defense Trade Controls under §122.2. For the purpose of this subchapter, engaging in such a business requires only one occasion of manufacturing or exporting or temporarily importing a defense article or furnishing a defense service. A manufacturer who does not engage in exporting must nevertheless register.
ITAR Registration Requirements - Consolidated Guidance July 22, 2016 Firearms Manufacturers and Gunsmiths
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ITAR registration is required of persons who engage in the business of manufacturing defense articles. Persons who do not actually manufacture ITAR-controlled firearms (including by engaging in the activities described below, which DDTC has found in specific cases to constitute manufacturing) need not register with DDTC - even if they have an FFL from ATF. As indicated above, the requirements for obtaining FFLs under the GCA are separate and distinct from the requirement under the AECA and ITAR to register with DDTC. The term "manufacturing" is not defined in the ITAR. In order to determine whether a firearmsrelated activity constitutes manufacturing for ITAR purposes, DDTC applies the ordinary, contemporary, common meaning of the term. Likewise, DDTC applies the ordinary, contemporary, common meaning for "gunsmithing," which traditionally has broadly included designing, making, or repairing guns. Not all firearms (as defined by ATF regulation) are "defense articles" under the ITAR, however, and not all activities involving assembly of and repairs to firearms qualify as manufacturing for ITAR purposes. DDTC has found that many traditional gunsmithing activities do not constitute manufacturing for ITAR purposes and, therefore, do not require registration under the ITAR, particularly where such activities do not require cutting, drilling, or machining and do not improve the accuracy, caliber, or operation of the ITAR-controlled firearm beyond its original capabilities.
Policy Guidance:
The guidance below is limited to domestic (U.S.) activities involving firearms (as defined in Category I(j)(1) of the United States Munitions List (USML) (22 CFR § 121.1)) and related ammunition that are .50 caliber (12.7 mm) or smaller - i.e., firearms in Category I, paragraphs (a) and (b), related items in paragraphs (e)-(h), and ammunition in Category III(a) for those firearms. Activities involving items elsewhere on the USML, including Category I, paragraphs (c) and (d), are not included in the scope of this guidance.
1. Registration not Required - Not Manufacturing: In response to questions from persons engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR registration is not required because the following activities do not meet the ordinary, contemporary, common meaning of "manufacturing" that DDTC employs in implementing the ITAR and, therefore, do not constitute "manufacturing" for ITAR purposes:
a) Occasional assembly of firearm parts and kits that do not require cutting, drilling, or machining;
b) Firearm repairs involving one-for-one drop-in replacement parts that do not require any cutting, drilling, or machining for installation;
c) Repairs involving replacement parts that do not improve the accuracy, caliber, or other aspects of firearm operation;
d) Hydrographic paint or Cerakote application or bluing treatments for a firearm;
ITAR Registration Requirements - Consolidated Guidance July 22, 2016 Firearms Manufacturers and Gunsmiths
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e) Attachment of accessories to a completed firearm without drilling, cutting, or machining-such as attaching a scope, sling, or light to existing mounts or hooks, or attaching a flash suppressor, sound suppressor, muzzle brake, or similar item to a prethreaded muzzle;
f) Cosmetic additions and alterations (including engraving) that do not improve the accuracy, caliber, or other aspects of firearm operation beyond its original capabilities;
g) Machining new dovetails or drilling and tapping new holes for the installation of sights which do not improve the accuracy or operation of the firearm beyond its original capabilities; and
h) Manual loading or reloading of ammunition of .50 caliber or smaller.
Activities limited to the domestic sale or resale of firearms, the occasional assembly of firearms without drilling, cutting, or machining, and/or specific gunsmithing activities that do not improve the accuracy, caliber, or operations of the firearm beyond its original capabilities (as described above) are not manufacturing within the context of the ITAR. If you are not manufacturing, exporting, temporarily importing or brokering defense articles or services, you are not required to register with DDTC.
2. Registration Required - Manufacturing: In response to questions from persons engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR registration is required because the following activities meet the ordinary, contemporary, common meaning of "manufacturing" and, therefore, constitute "manufacturing" for ITAR purposes:
a) Use of any special tooling or equipment upgrading in order to improve the capability of assembled or repaired firearms;
b) Modifications to a firearm that change round capacity;
c) The production of firearm parts (including, but not limited to, barrels, stocks, cylinders, breech mechanisms, triggers, silencers, or suppressors);
d) The systemized production of ammunition, including the automated loading or reloading of ammunition;
e) The machining or cutting of firearms, e.g., threading of muzzles or muzzle brake installation requiring machining, that results in an enhanced capability;
f) Rechambering firearms through machining, cutting, or drilling;
g) Chambering, cutting, or threading barrel blanks; and
h) Blueprinting firearms by machining the barrel.
ITAR Registration Requirements - Consolidated Guidance July 22, 2016 Firearms Manufacturers and Gunsmiths
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3. Registration Required - Other than Manufacturing:
a) Assisting foreign persons in the design, development, and repair of firearms may constitute the export of a defense service (see 22 CFR § 120.9) and require ITAR registration with and authorization from DDTC; and
b) Exporting a firearm or any other item on the USML requires ITAR registration with and authorization from DDTC.
If, after careful review of this guidance, you are unsure as to whether you are required to register with DDTC, you may submit an advisory opinion request (see 22 CFR § 126.9) detailing exactly what you do or intend to do with regard to firearms and ammunition. This request should be sent in hard copy (services like UPS or FedEx recommended for faster delivery) as indicated on our website: http://pmddtc.state.gov/about/contact_information.html.
If you have any general follow-on questions, please feel free to contact the Response Team at (202) 663-1282 or [email protected].
 

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I have been curious about this, so great to read through and see what qualifies. Harrison - are any of these big functional changes in the industry where people will be surprised or need to register?
 

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It's basically a gun ban via pocketbook. Every little Mom and Pop shop that threads barrels, machines some sort of part, etc., even if they export nothing, is supposed to pay ITAR now. The big companies don't care, it's already in their budget but what it does is limit smaller guys from doing their thing, they can't afford it, they close shop or sell or profit nothing, which means less to market so may as well just make a fkn rifle cost $2,000 which most can't afford so less guns and parts purchased. It's total bullsh#t.

Make a gun so expensive that people won't buy them. A financial ban.
 

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These seem like pretty mundane actions that require registration and fees. Probably not a big deal to larger companies, but this seems to be another hurdle for small businesses. H, how do you see this affecting you?

a) Use of any special tooling or equipment upgrading in order to improve the capability of assembled or repaired firearms;
b) Modifications to a firearm that change round capacity;
c) The production of firearm parts (including, but not limited to, barrels, stocks, cylinders, breech mechanisms, triggers, silencers, or suppressors);
d) The systemized production of ammunition, including the automated loading or reloading of ammunition;
e) The machining or cutting of firearms, e.g., threading of muzzles or muzzle brake installation requiring machining, that results in an enhanced capability;
f) Rechambering firearms through machining, cutting, or drilling;
g) Chambering, cutting, or threading barrel blanks; and
h) Blueprinting firearms by machining the barrel.
 

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what is the cost/fee to register ?

found it :? maybe ?

Applicable Registration Fee

To align registration fees with the cost of licensing, compliance and other related activities, the Department adopted a three-tier registration fee schedule in September 2008, and modified the fee requirements for brokers who consolidate their broker registration with their manufacturer/exporter registration on October 25, 2013, to account for amendments to ITAR Part 129.* The schedule is as follows:

  1. The first tier is an annual flat fee of $2,250.00. The first tier fee is applicable to:
    • First time registrants (Manufacturer, Exporters and stand-alone Brokers);
    • Annual registration renewals for stand-alone Brokers (U.S. and foreign owned or controlled by U.S. persons);
    • Registrants who did not submit any license applications or request for authorization during the twelve month period, ending 90 days prior to the expiration of the current registration.
  2. The second tier is a set fee of $2,750 for registrants renewing their registration who have submitted and received a favorable authorization on ten or fewer license applications or request for authorization during a twelve month period, ending 90 days prior to the expiration of their current registration.
  3. 3. The third tier is a calculated fee for registrants who have submitted and received favorable authorization on more than ten license applications or request for authorization during the twelve month period, ending 90 days prior to the expiration of the current registration. For these registrants, the fee calculation is $2,750 plus $250 times the total number of applications over ten. To ensure fairness to those registrants who may fall within the third tier who may have many applications but all of a low value, there is a provision for a reduced fee if the fee calculated above is greater than 3 percent of the total value of all applications. In such cases, the fee will be 3 percent of the total value of all applications or $2,750, whichever is greater.

Note: *Effective October 25, 2013, registrants who consolidate their broker registration with their manufacturer/exporter registration on a single DS-2032 Statement of Registration are no longer required to pay a separate broker registration fee. Registration consolidation may only occur on a manufacturer/exporter registration. Registrants are not able to consolidate a manufacturer/exporter registration to an existing broker registration. Stand-alone brokers and brokers who do not consolidate their broker registration with their manufacturer/exporter registration are still required to pay the first tier fee of $2,250.00, For more information on registration consolidation and changes to ITAR Part 129 click here for registration and brokering frequently asked questions. License applications and authorizations which received a favorable decision (e.g., issuance or approval) are included in the tier calculation. The following license types and actions are counted: DSP-5, DSP-6, DSP-53, DSP-61, DSP-62, DSP-73, DSP-74, DSP-85, DSP-119, TAA, WDA and MLA Authorizations.
License applications or request for authorizations in which unfavorable decision (e.g., Return Without Action, Denial, or Revocation) were rendered are not included in the tier calculation. Also excluded are Brokering License, Commodity Jurisdiction (CJ), and General Correspondence (GC) requests.
 

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If I remember ITAR fees are $3K or more per year. Don't quote me though. Total bull**** pocket book gun ban.
 

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Damn H now is the time to put on the tinfoil hat. This is a serious backdoor attempt to curtail gun ownership and modification of our guns. Where is the NRA and Shooting sports foundations on all of this? They need to get some serious lawyer power on this crap.

Mother F'ers now I won't be able to get my barrel threaded for my 15-22. And stupid S&W won't sell threaded barrels.
 

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Damn H now is the time to put on the tinfoil hat. This is a serious backdoor attempt to curtail gun ownership and modification of our guns. Where is the NRA and Shooting sports foundations on all of this? They need to get some serious lawyer power on this crap.

Mother F'ers now I won't be able to get my barrel threaded for my 15-22. And stupid S&W won't sell threaded barrels.
You can still get your barrel threaded, you will just be paying your percentage of ITAR fees through the cost of said threading.
 

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Discussion Starter · #9 ·
These seem like pretty mundane actions that require registration and fees. Probably not a big deal to larger companies, but this seems to be another hurdle for small businesses. H, how do you see this affecting you?

a) Use of any special tooling or equipment upgrading in order to improve the capability of assembled or repaired firearms;
b) Modifications to a firearm that change round capacity;
c) The production of firearm parts (including, but not limited to, barrels, stocks, cylinders, breech mechanisms, triggers, silencers, or suppressors);
d) The systemized production of ammunition, including the automated loading or reloading of ammunition;
e) The machining or cutting of firearms, e.g., threading of muzzles or muzzle brake installation requiring machining, that results in an enhanced capability;
f) Rechambering firearms through machining, cutting, or drilling;
g) Chambering, cutting, or threading barrel blanks; and
h) Blueprinting firearms by machining the barrel.
A drop in the bucket but another government agency with their hand out. Now anyone that has parts produced for them...including barrels will have to pay the fee and register as well as comply with any new laws about how much information they can put online that someone out of the country may read. This is tied into the other itar and international trade law that was passed or EO'd last year.
 

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It seems like people are missing the point. Up till now everyone with an 07 or any other manufacturing or importing/exporting license was required to register with the state dept. I know plenty never did and never had a problem but technically they were supposed to. This is the reason I got an 01 instead of 07 to begin with because I didn't want to pay the $2500 a year fee for registering. This new deal means there are a lot of 07 FFLs who were previously required to register that no longer will have to. I see this as a good thing. I have my new application all filled out and ready to mail. My license was coming up for renewal in December anyway. With an 07 I can legally pin an upper to a lower and sell it as a rifle where with an 01 I can not because that is considered manufacturing. With an 07 I can build a lower and sell it where as before I could not because it was considered manufacturing. I don't see any way where this is a bad thing. If you were required to register before and just didn't bother as many 07s didn't, continue on.
It was explained to me by the ATF field agent that if I wanted an 07 license, I was required by law to register with the state dept. She also said that most don't bother, it was never enforced and ATF did not care because that was not in their jurisdiction. Now, you can get an 07 and not be required to register with the state dept. I chose not to take a chance before because I would have been the test case. The one the state dept decided to make an example of so I just went for 01 instead.

The requirement to register with the state dept has been the law for about 8 years. With this letter that just came out they are loosening the restrictions, not tightening them. That is the way I am reading it.
 

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It's a snake in the grass type of control that is more heinous then coming straight at owners. This shows how criminal governments back doors it's voters because they are gutless and what they are capable of if given the chance.
 

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It's a snake in the grass type of control that is more heinous then coming straight at owners. This shows how criminal governments back doors it's voters because they are gutless and what they are capable of if given the chance.
Again, this law has been in effect for 8 years. This letter actually clarifies and reduces the restrictions on who is required to register with state. I don't understand how this is a bad thing. It is an easing of restrictions that were previously in place as I see it.
 

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Again, this law has been in effect for 8 years. This letter actually clarifies and reduces the restrictions on who is required to register with state. I don't understand how this is a bad thing. It is an easing of restrictions as I see it.
It is essentially easing restrictions on a retailer service on the backs of skilled manufacturers. Skills take another hit for the middle men, it happens to be firearms this time. Tin foil time, dry the industry up to a handful of larger firms that are easier to control while the cottage manufacturers close their doors. They play ball for DOD or HLS payola and retail prices for Joe Shmoe become unobtainable without the need to regulate the hardware. Again, another nail in freedom.
 

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It is essentially easing restrictions on a retailer service on the backs of skilled manufacturers. Skills take another hit for the middle men, it happens to be firearms this time. Tin foil time, dry the industry up to a handful of larger firms that are easier to control while the cottage manufacturers close their doors. They play ball for DOD or HLS payola and retail prices for Joe Shmoe become unobtainable without the need to regulate the hardware. Again, another nail in freedom.
I don't see how you figure that. It doesn't change anything for the manufacturer. The law is the same today as it was a week ago or 8 years ago. This is not new. The letter just clarifies the fact that some manufacturers are now not required to register where as it was always said before that all manufacturers were. Just by virtue of holding an 07 manufacturers license you were required to register. That is no longer true.
 

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Discussion Starter · #15 · (Edited)
In the past I did not need to register with DDTC or Itar or pay the fee because I did not export. Now I have to register and pay and so do a lot of common gunsmiths that may do nothing more than thread a barrel or install a new AR15 barrel in an upper. If you are building uppers you must register and pay the fee.
In the past per ATF regs a manufacturer was only those making parts required to have serial numbers on them. They were the only ones required to have a #7 ffl.
 

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In the past I did not need to register or pay the fee because I did not export. Now I have to register and pay and so do a lot of common gunsmiths that may do nothing more than thread a barrel or install a new AR15 barrel in an upper. If you are building uppers you must register and pay the fee.
I'm sorry but that is not what I take away from it. Maybe I am reading it wrong.
1. Registration not Required - Not Manufacturing: In response to questions from persons engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR registration is not required because the following activities do not meet the ordinary, contemporary, common meaning of "manufacturing" that DDTC employs in implementing the ITAR and, therefore, do not constitute "manufacturing" for ITAR purposes:
a) Occasional assembly of firearm parts and kits that do not require cutting, drilling, or machining;
b) Firearm repairs involving one-for-one drop-in replacement parts that do not require any cutting, drilling, or machining for installation;
c) Repairs involving replacement parts that do not improve the accuracy, caliber, or other aspects of firearm operation;
d) Hydrographic paint or Cerakote application or bluing treatments for a firearm;
ITAR Registration Requirements - Consolidated Guidance July 22, 2016 Firearms Manufacturers and Gunsmiths
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e) Attachment of accessories to a completed firearm without drilling, cutting, or machining-such as attaching a scope, sling, or light to existing mounts or hooks, or attaching a flash suppressor, sound suppressor, muzzle brake, or similar item to a prethreaded muzzle;
f) Cosmetic additions and alterations (including engraving) that do not improve the accuracy, caliber, or other aspects of firearm operation beyond its original capabilities;
g) Machining new dovetails or drilling and tapping new holes for the installation of sights which do not improve the accuracy or operation of the firearm beyond its original capabilities; and
h) Manual loading or reloading of ammunition of .50 caliber or smaller.
Activities limited to the domestic sale or resale of firearms, the occasional assembly of firearms without drilling, cutting, or machining, and/or specific gunsmithing activities that do not improve the accuracy, caliber, or operations of the firearm beyond its original capabilities (as described above) are not manufacturing within the context of the ITAR. If you are not manufacturing, exporting, temporarily importing or brokering [defense articles] or services, you are not required to register with DDTC.

When I applied for the 07 license I was told by ATF that it was their duty to inform me that just by having an 07 FFL I was required to register with DDTC. That was three years ago. I was also told at the time that most 07 holders did not bother, that the state dept rarely if ever enforced the law and that ATF didn't care one way or the other because that was out of their jurisdiction. That is when I changed my application to 01 dealer, to avoid the fees.
 

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I think H sees this as the place where he will get hit:

2. Registration Required - Manufacturing: In response to questions from persons engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR registration is required because the following activities meet the ordinary, contemporary, common meaning of "manufacturing" and, therefore, constitute "manufacturing" for ITAR purposes:
a) Use of any special tooling or equipment upgrading in order to improve the capability of assembled or repaired firearms;
b) Modifications to a firearm that change round capacity;
c) The production of firearm parts (including, but not limited to, barrels, stocks, cylinders, breech mechanisms, triggers, silencers, or suppressors)
 

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I think H sees this as the place where he will get hit:

2. Registration Required - Manufacturing: In response to questions from persons engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR registration is required because the following activities meet the ordinary, contemporary, common meaning of "manufacturing" and, therefore, constitute "manufacturing" for ITAR purposes:
a) Use of any special tooling or equipment upgrading in order to improve the capability of assembled or repaired firearms;
b) Modifications to a firearm that change round capacity;
c) The production of firearm parts (including, but not limited to, barrels, stocks, cylinders, breech mechanisms, triggers, silencers, or suppressors)
I understand that but it was my understanding (from what the ATF agent who did my interview told me) that this was already the law. As I said, she told me that most didn't bother and she had never heard of anyone getting into any trouble for not registering. Maybe I am wrong, maybe she didn't know what she was talking about. Afterall, like she said, it wasn't their jurisdiction.
 

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I understand that but it was my understanding (from what the ATF agent who did my interview told me) that this was already the law. As I said, she told me that most didn't bother and she had never heard of anyone getting into any trouble for not registering. Maybe I am wrong, maybe she didn't know what she was talking about. Afterall, like she said, it wasn't their jurisdiction.
I get what you are saying now. I appreciate the clarity of the ruling, even though small shops may not see it as favorable. I've been considering getting my FFL01 for doing Cerakote jobs. Good to know I would be in the safe zone in terms of avoiding ITAR if so.
 

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In the past I did not need to register with DDTC or Itar or pay the fee because I did not export. Now I have to register and pay and so do a lot of common gunsmiths that may do nothing more than thread a barrel or install a new AR15 barrel in an upper. If you are building uppers you must register and pay the fee.
In the past per ATF regs a manufacturer was only those making parts required to have serial numbers on them. They were the only ones required to have a #7 ffl.
Also, when I got my license, the way it was explained to me was that something as simple as pinning an upper to a lower was considered manufacturing because you are taking parts and making a working rifle out of them and required an 07. The same with taking a stripped lower and building it into a complete lower was also considered manufacturing and required an 07 and all 07 holders required registering with State Dept. I have discussed this with other licensed dealers who said the same thing. I know of a couple who build custom uppers because to build lowers or entire rifles required an 07 but uppers did not because they are not the serialized part. Lets face it, all these laws are stupid and do nothing but make it harder for the little guy. There is no arguing that.
 
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