Logistics system of Air Freight

1. Technology that Transforms

2. Global e-Commerce Logistics - Massive Opportunity Ahead
The Rise of Cross-Border e-Commerce, Collaborative Communities and Logistics Marketplaces

3. © Copyright. 2018. Kale Logistics Solutions Private Limited
E-commerce Industry at a glance
Retail e-commerce sales worldwide
Globally, e-commerce, market is
worth around $22.1 trillion
Global e-commerce Sales Will
Double in Less Than 5 Years
Global internet connectivity,
coupled with a growing shift toward the
convenience of “e-tail,
Major e-Commerce markets –
China, USA, Japan,
Germany

4. © Copyright. 2018. Kale Logistics Solutions Private Limited
The evolution of retail logistics
1970s Direct Store
replenishment by
suppliers or
wholesalers
1980s
'CENTRALIZATION' of
deliveries through
retailer distribution
centers
1990s The rise of
global sourcing
2000s E-commerce
model involving
parcel network
Suppliers Shops
Mainly domestic suppliers Retail distributions centers Shops
Overseas supplier
Domestic supplier
Retail import center Retail distribution center Shops
E-fulfillment center
Parcel hub Sortation center Parcel delivery center
Local depot (urban logistics)
Returns
Customer home
Collection point
Delivery Point
* Based on non-food distribution in developed markets

5. © Copyright. 2018. Kale Logistics Solutions Private Limited
Role of Logistics in e-commerce
First and Last Mile Delivery
Management
 Reduce cost per delivery, maximize delivery person
 Improve Attempt to Delivery Ratio, reduce failed
attempts
Market Place and Drop Shipment
 Integrated logistics systems for inventory visibility Data
Integration between varied systems of stakeholders
 Direct shipment from vendor to customer
Cash Management and Reverse
Logistics
 Cash Collection and deposit as well repatriation
 Managing customer returns, warranty
execution, Return to origin
Visibility across Order Life cycle
 Data Integration between varied
systems of stake holders
 Visibility across supply chain from
warehouse to door delivery

6. Logistics Value Chain: Complexity in operations

7. © Copyright. 2018. Kale Logistics Solutions Private Limited
Air Cargo Cross Border e Commerce Supply Chain
LSP (Cargo agent)– First Mile Air Cargo Aggregator
Airport Handler
 Bag Acceptance
 Attach AWB
 Security Scanning
 Manifest
 On Ramp Operation
 Loading
Airport Handler
 Unloading
 On Ramp Operation
 Manifest
 Bag level Warehousing
 Bag Level Delivery
LSP (Cargo Agent) – Last Mile
Origin Country
Destination Country
Origin Customs
1
2
3
4
Destination Customs
5
6
7

8. © Copyright. 2018. Kale Logistics Solutions Private Limited
Air Cargo Stakeholders - Interactions
48. Pouch
49. Air Waybill FWB
54. Customs Fees
55. Customs
Release Imports
13. Air Waybill
2. L/C Application
Importer’s Bank
3. L/C Application
4. L/C Notification
5. Invoice & Packing List 6. Invoice & Packing List
1. Purchase Order/Sales Contract
43. Air Waybill FWB
44. House Waybill FHL
45. Flight Manifest FFM
Importer
Transporter
Insurance
Airline
Airport Authority
Airport Authority
Customs
Customs
CB/FF
CB/FF
CTO
CTO
14. Air Waybill
15. Credit Note 16. Debit Note
28. Receipt
27. Transport Order
24. Invoice & Packing List
25. Air Waybill
26. Certificate of Insurance
10. Invoice & Packing List
11. Letter of Instruction
12. L/C Instruction
64. Handling Fees
19. Booking
20. Air Waybill FWB
21. House Waybill FHL
38. MRN
36. ACI
37. MRN
35. Flight
Manifest
50. Invoice
51. Air Waybill
52. House waybill
53. Import Goods
Declaration
56. Custom Release Import
46. Freight Arrival Notice
47. Handling Forwarder
60. Consignee
Receipt
58. Receipt
61. Air Waybill
62. Customs Fees
63. Handling Fees
59. Receipt
22. Air Waybill FWB
23. House Waybill FHL
30. Export Goods Declaration.
31. Customs Release Exports
29. Cargo Receipt FOH
32. Pouch
33. Customs Rel. Exp.
Pouch Content:
• House Waybill(Paper)
• Invoice
• Packing List
• Certificate of Origin
• Regulatory Documents 34. Cargo Acceptance
17. Invoice & Packing List
18. Debit Note
57. Transport Order
7. Certification Request
8. Invoice & Packing List
9. Certificate of
Conformity
39. Pouch
40. Air Waybill FWB
41.House Waybill FHL
42. Flight Manifest FFM
Exporter
Transporter
Exporter’s Bank

9. © Copyright. 2018. Kale Logistics Solutions Private Limited
An example of the current documentation and information flow in Air Cargo Exports
ERP Systems
Manufacturer
Freight
Forwarder/
3PL Provider
Documentation
System
Customs
Airport Cargo Handler
Airline
3rd Party
DEO
Airline System
Invoice
Packing
List
SLI
SDDG
MAWB
House Manifest
Other shipment
docs MAWB
House Manifest
Flight Manifest
Estimated 118 copies,
258 signatures, 22
hours of key-punching
during exports
clearance process
Source: IATA
Pre-alerts for
Overseas
Agents
House Manifests,
Invoice, Packing
Lists
Carting Order ,
Charges
receipts,
MAWB,
Booking Lists,
Manifests
Declarations,
Manifest
Cargo
Arrival,
Release
Order
Terminal
Receipt

10. © Copyright. 2018. Kale Logistics Solutions Private Limited
Maritime Stakeholders - Interactions
63 Payment Confirmation
64. Gate Out
Shipping
Line
Customs 48. IGM
48. IGM
16. HBL
2. L/C Application
Importer’s Bank
Exporter’s Bank 3. L/C Application
4. L/C Notification
5. Invoice & Packing List 6. Invoice & Packing List
1. Purchase Order/Sales Contract
Exporter
Importer
17. HBL
18. Credit Note
19. Debit Note
CB/FF
10. Invoice & Packing List
11. Letter of Instruction
12. L/C Instruction
20. Invoice & Packing List
21. Debit Note
7. Certification Request
8. Invoice & Packing List
9. Certificate of
Conformity
Shipping
Line
13. Booking
14. SLI
15. MBL
Insurance
22.Invoice & Packing List
23. MBL
26. Shipping Bill No.
24. Certificate of Insurance
25. Shipping Bill
Customs
28. Transport
Order
Transporter
29. Receipt
30. Gate In
31. Container Weighment
32. De-stuffing + Carting Tally
27. Carting Request
ICD/CFS
37. CLP
38. Movement
Request
39. Forwarding Note
40.Pre Load List
41. WTR
42. Train Summary
43. Payment Confirmation
44. Gate Out
Warehouse
33. Storage of Cargo
34. Allocation of
Empty Container
Port
46. Cargo Manifest
47. CAN
49. Via
Rail
49. Via
Road
-TJO -Train Summary
-WTR
ICD/CFS
53.Container Inspection
54. Gate In
55.Weighment
56. Seal Cutting
56.1 FCL
56.2 LCL
CB/FF
45. Pre- Arrival Notice
50. Clearing Payment
51.DO
Warehouse
58. Customs
Examination
-Stored in Bonded Area
59. Out of Charge
57. De-stuffing
62. Receipt
65. Receipt
Transporter
61. Transport
Order
52. BOE
Port
44.1 Port wise Document
35. Stuffing
36. Inspection & LEO
60. Loaded/Re-stuffing Delivery
66. Consignee
Receipt
67. MBL
68. Handling
Fees

11. Collaborative Technology Platforms : Single Window and Cargo Community Systems

12. © Copyright. 2018. Kale Logistics Solutions Private Limited
An end to end Digital Platform from Origin to Destination
1
2

13. © Copyright. 2018. Kale Logistics Solutions Private Limited
An end to end Digital Platform from Origin to Destination
3
4

14. Collaborative Technology Platforms connecting the Logistics Value Chain

15. © Copyright. 2018. Kale Logistics Solutions Private Limited
United Nation Recommendation no 33 for Single Window
• Level 1 : Paperless Customs + e-Payment for Customs Duty + e-Customs Duty + e-Container Loading List + and electronic risk-based inspection
• Level 2 : Connecting Other Government Back-end IT systems, and e-Permit Exchange with Paperless Customs System
• Level 3 : e-Documents Exchange among Stakeholders within the (air, sea) port community
• Level 4 : An Integrated national logistics platform with also traders and logistics-service providers information exchange
• Level 5 : A regional information-exchange system
SW
Paperless Customs
Other Regulatory Bodies
for E-Permits/e-Certificates
Exchange
Port-Community
Information Exchange
National e-Logistics
Platform
A regional information-exchange system
or cross-border paperless trade
Traders
Banks for various
kinds of e-payment
Insurance
Companies
Freight Forwarders
and Logistics Service
Providers
Airlines
Duty Free Zones
Air Port Authority
Port Authority etc.
Ship Agents
Terminal Operators
Internet
Importer/Exporter/Customs
Broker/Representative/othe
r Stakeholders
Note that in many countries, Level 3 was
being developed before Level 2.

16. © Copyright. 2018. Kale Logistics Solutions Private Limited
Electronics goods Exports from China ( to India)
Electronics
Goods Exporter
China Company
Registrar
• Business
Registration
Ministry of
Commerce
• China Foreign Trade
Registration
China Electronic
Standardization
Institute
• Product Certification
China Certification Center for
Quality System of Electronic
Industry (CCQE)
• Quality Standardization
China chambers of
commercre
• Certificates of Origin
(COO)
Freight Forwarder /
Customs Broker
• File Customs
declaration
• Get Published Rates
• Make booking
Transporter
• Last Mile
• Consignment Note
Cargo Terminal
• Carting Order
• Terminal Charge
Creation
• Security and
Acceptance
• Customs Facilitation
Airline
• Accept Booking
• Issue AWB
• Manifest filing
Business Process
Trade Process
Logistics Process
China Customs
• Category allocation &
Customs Certificate
• Identify Buyer
• Identify Logistics
Service Provider
• Approve declaration
• Release Order
• Manifest acceptance
China Customs
3 Marketplace
1 Regulatory Single Window
2 Cargo Community Platforms

17. © Copyright. 2018. Kale Logistics Solutions Private Limited
Multimodal Trade Facilitation Platform- UPLIFT
Railways Customs Broker
Shipper /
Consignee
Forwarder Transporter Liner
Airlines
Custodian/
Ground Handler
Bank
Customs Broker
Transporter
Forwarder
Web Portal
Customs Single Window
Customs
Internal
System
UPLIFT
Adapter
Internal
System
UPLIFT
Adapter
UPLIFT - A Multi-modal Trade Facilitation Platform

18. © Copyright. 2018. Kale Logistics Solutions Private Limited
Components of Logistics Single Window - ACS & PCS
Invoice Packing List
Manufacturer
Air Cargo Community System
ERP Systems
Freight Forwarder/Broker
3PL Provider
Documentation
System
Imports goods declaration,
Terminal Storage Charges,
CAN, DO
CAN, DO, FFM, FSU
Airline System
MAWB/House Manifest FSU
MAWB House Manifest
Flight Manifest Airline
CUSTOMS
Cargo Handler
Imports Cargo declaration,
Import manifest, Customs
Release Order
Shipping Bills & other declaration doc
Carrier booking Waybills,
Status updates
Export Cargo declaration
Exports manifest Cargo arrival
Customs Release Order
ACS
• Gate Pass
• Truck Number
• Customs Document
• Booking with Terminal
Operator for space
allotment
Document
Validation
Allowed
for
Shipment
Time for
Shipment
CFS Customs
Terminal GATE
Port Security
Port Customs
Shipping
Bill
PORT Authority
Terminal
Operator 1
Terminal
Operator 2
EIR
Carting
Approval
Manifest
EIR Approval
Yard Management
Transport Movement
Customs Broker
Physical Flow of Cargo Digital Information Flow of Cargo
PCS
Port Community System

19. © Copyright. 2018. Kale Logistics Solutions Private Limited
Connecting stakeholders at Mumbai Airport on a collaborative platform
100+ Airlines
2000+ Agents
13 Statutory Bodies
including Customs
500+ truckers
Exporter Forwarder
CHA
Municipal Corporation
of Grater Mumbai
Chamber of Commerce
Customs and Allied
regulators
Airline
Banks
Booking/Transport/Tracking
Job info
Payments
Payments
Booking/Documentation/Tracking
Landside Area Airside Area
Unregulated
Cargo Operators
Cargo Terminal
Cargo Terminal Operator Processes:
Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside
movement, Aircraft Loading
Regulated
Cargo
Services
GMAX: Empowering unregulated operators to transact digitally e-
Booking, e-AWB, e-Customs, e-Chamber fo Commerce etc.
Exporter
Municipal Corporation
of Grater Mumbai
Chamber of Commerce
CHA Forwarder
Banks
Airline
Unregulated
Cargo
Operators
Landside Area Airside Area
Cargo Terminal
Cargo Terminal Operator Processes:
Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside
movement, Aircraft Loading
Regulated
Cargo
Services
Document handled ( including copies)
Avg Queue Time for document/payments
Airport Counters
Average time per export doc handling
Average time per import doc handling
Accuracy of data
Waiting time for Export Trucks
Availability of data to stake holders
Parameter
128
1 hr 20 minutes
9
28 minutes
22 minutes
85%
2 hours+
Through Mail, calls and in person
Pre GMAX
24
Nil
1
6 minutes
8 minutes
94% +
30 minutes
Portal, EDI, App, On Demand
Post GMAX
Customs and Allied
regulators

20. © Copyright. 2018. Kale Logistics Solutions Private Limited
Accelerating container movement a Container Digital Exchange
• Gate Pass
• Truck Number
• Customs Document
• Booking with Terminal
Operator for space
allotment
Document
Validation
Allowed for
Shipment
Time for
Shipment
CFS Customs
Terminal GATE
Port Security
Port Customs
Shipping
Bill
PORT Authority
Terminal
Operator 1
Terminal
Operator 2
EIR
Carting
Approval
Manifest
EIR Approval
Yard Management
Transport Movement
Customs Broker
Physical Flow of Cargo Digital Information Flow of Cargo
Forwarder Shipping Line
Port Terminal
Operator
Port Operator
Port Security
Container Depot
(CFS/ICD)
Customs
Customs Broker
Shipper /
Consignee
Invoice & Packing List
DO & MBL
Invoice
&
Packing
List
Invoice & Packing List
Invoice & Packing List
Scenario without CODEX Scenario with CODEX
15 CFS/ICD
1Mn TEU/annum
12 Vessel Operators
400 Agents
500+ Exporter/Importers
300Transporters
Container dwell time from
2.5 hours to 25
minutes
Document copies for
port entry reduced
from 15+ to 2
One common information
highway connecting all
Shipment visibility based
on rights
Shipment related documents
made available for approvals
& processing
Improved capacity
planning
at terminal
No separate application
required by Shipper, CFS/
ICD for operations
Mobile App enabled
on- the-go tracking
Eliminated possibility of
un-cleared shipment
Business Benefits

21. Digital Corridor- Powering Regional Single Windows

22. © Copyright. 2018. Kale Logistics Solutions Private Limited
Trade Facilitation Platforms: Full Services Play
Exporter/
Shipper
Forwarder
Customs
Broker
Transporter
Railways
Container Depot
Warehouse
Export
Customs
Export
Port/Airport
Carrier
Import
Customs
Container Depot
Warehouse
Forwarder
Customs Broker
Transporter
Railways
Importer/
Consignee
Air Ocean
Import
Port/Airport
National Single Window
Customs
Air Cargo Community(ACS)
Airport Community System
e-Manifest | e-DO
Container Digital Exchange (PCS)
e-Manifest | e-DO | e-VGM | UCC
Home Country Destination
Country
Digital Corridor
Customs Single Window
Air Cargo Community
Port Community
Logistics Single Window Regulatory Single Window
Rail/Road Community Platform

23. © Copyright. 2018. Kale Logistics Solutions Private Limited
Digital Air Corridor between India & Netherland
3
2
1
A Digital Air Corridor is being established between
Mumbai and Schiphol
Uses Blockchain.
Connects exporters, importers, agents,
ground handlers, Airlines from both
stations to have real time visibility of the
shipment

24. © Copyright. 2018. Kale Logistics Solutions Private Limited
Digital corridor- India -Netherland
India- Kale’s GMAX
Export/Import
Customs :Customs clearance, COO, Manifest
Participative Government Agency- License
and Permits
Security Certification Agencies
Customs Information
Import/Export
Customs : Customs clearance, COO,
Manifest
Participative Government Agency
Security Certification Agencies
Shipment Documents
Status of cargo at airport
Digital Corridor
enabled by
Blockchain
Netherland- Cargonaut
Shipment Documents
Status of cargo at airport

25. © Copyright. 2018. Kale Logistics Solutions Private Limited
Digital Air Corridor - Exports Information Flow
Origin
Handler
Carrier
Export Customs
1. FOH – Freight On Hand
2. RCS – Receive from Shipper
4. MAN – Shipment Manifestation
5. DEP – Shipment Depart
3. Customs Release
View
Air Cargo Community
System
Freight Forwarder
Shipper
Air Cargo Community
System
Freight Forwarder
Consignee
View
Information Exchange Flow- Exports
Destination
Origin

26. © Copyright. 2018. Kale Logistics Solutions Private Limited
Digital Air Corridor - Import Information Flow
Destination
Handler
Carrier
Import Customs
1. ARR – Flight Arrived
2. RCF – Receive from Flight
3. NFD – Notification for Delivery
4. DEP – Shipment Depart
6. DLV – Shipment Delivered
5. CCD – Shipment
Custom Cleared
View
Air Cargo Community
System
Freight Forwarder
Shipper
Air Cargo Community
System
Freight Forwarder
Consignee
View
Information Exchange Flow- Imports
Destination
Origin

27. Marketplace Model for Multi Modal Logistics

28. © Copyright. 2018. Kale Logistics Solutions Private Limited
Trade Facilitation Platforms: Full Services Play
Exporter/
Shipper
Forwarder
Customs
Broker
Transporter
Railways
Container Depot
Warehouse
Export
Customs
Export
Port/Airport
Carrier
Import
Customs
Container Depot
Warehouse
Forwarder
Customs Broker
Transporter
Railways
Importer/
Consignee
Air Ocean
Import
Port/Airport
National Trade Platform
Air Cargo Community(ACS)
Airport Community System
e-Manifest | e-DO
Container Digital Exchange (PCS)
e-Manifest | e-DO | e-VGM | UCC
Logistics Single Window Logistics Marketplace
Rail/Road Community Platform
Logistics Services repository
Demand Supply match
Price Discovery

29. © Copyright. 2018. Kale Logistics Solutions Private Limited
COMPLEX TRADE LOGISTICS SECTOR
COMPLEX TRADE RULES
EXPORT
PROMOTION BOARD /CHAMBER OF
COMMERCE
MULTIPLE PERMITS &
CERTIFICATIONS
MULTIPLE GOVERNMENT AGENCIES
SEVERAL
COMMODITIES
BILLION $
MARKET SIZE
LARGE
EMPLOYMENT BASE
MULTIPLE LOGISTICS
AGENCIES
DISCONNECTED IT
PLATFORMS BANKS & INSURANCE AGENCIES
36 LOGISTIC SERVICES MANY WAREHOUSES/DEPOTS

30. © Copyright. 2018. Kale Logistics Solutions Private Limited
LOGISTICS e MARKETPLACE- CONNECTING THE FRATERNITY
Plan end to end
shipment route
1 Select Freight
Forwarder/Broker
4a
Exchange
eContract
4e
Invoice
Generation
4b
Monitor Physical
Flow of Goods
4c
Book ocean
freight
4d
Pay
electronically
4f
Book air
freight
4g
Book
truck/Rail
2
Book
warehouse
3
Check
availability
5
Rate enquiry
6
Book Other
Logistics
services
7
Book Packaging
Services
8
Online
Grievance
Redressal
9
View trade
analytics
10
Service Provider
Rating
Availability Price Discovery
Track & Trace
Shipment
Digilocker
ePayment
FEATURES
START

31. © Copyright. 2018. Kale Logistics Solutions Private Limited
Logistics Marketplace
• Dashboard
• Exporter/Importer list
• Global Tenders
• Global Trade News
• Promotions
• Export/Importer
Guidelines
Exporter/Importer
Invoice Packing List
Freight
Forwarder
RFQ
Agent Rating
on SLA
Booking sent
Rates Scheduling
Booking Confirmation
Carrier
Customs
Broker
Transporter
• List of CBs
• List of Transporters
Transit Insurance
Cargo Community
Systems
Booking sent & confirm
Regulatory
Single
Window
Find Agent
eTrade Portal
Rates Scheduling
Booking Confirmation
RFQ Booking
Booking sent
RFQ
eMarket Place for Exports/Imports

32. © Copyright. 2018. Kale Logistics Solutions Private Limited
Logistics Community Technology Framework Model
Customs Authority
Ministry of Trade
and Commerce
Other Participating
Government
Agencies
Regulatory
Single Window
National Trade
Logistics Platform
Logistics Single
Window
Partner Countries
Customs, Ports and
Airports
• Freight Forwarder
• Customs Broker
• Container Depot
• Warehouse
• Trucker
• Port
• Airports
• Shipping Line
Digital Corridor
• Exchange Cargo Status
• Exchange Documents
• Exchange Customs Information
1
2
Trade Market Place
• Exporters/Importer Marketplace
• Logistics Service Provider Database
• Services offered
• Rates and schedules
• Optimized transportation plans
• Bookings on Carriers
• Service Provider Work ratings
• Trade Analytics
b
Existing Trade
Facilitation
Infrastructure a

33. Blockchain : Powering Digital Logistics Trade Platforms

34. © Kale Logistics Solutions Private Limited. All Rights Reserved
E-Certificate of Origin- Moving towards Blockchain
Freight
Forwarder / Customs
Agent
Manual in person
CoO approval at
Chambers
Prints &
Submits
& carries
in person
Exporter
CoO + invoice + packing
list is applicable
Verify/Approve/ Reject
Invoice & Packing List
Rejected
documents
sent back to
Exporter
Approved documents
stamped and handed over
to FF/Custom Agent
Rejected Invoice &
Packing List sent back t
Invoice/
Packing List
Originating Country
Destination Country
Customs
Document
submitted on
Blockchain
network
Verification,
authentication
and issuance
on Blockchain
network
Transmission on
Blockchain network
with digital signature

35. © Kale Logistics Solutions Private Limited. All Rights Reserved
Terminal
Operator Shipping
Line
Shipper/
Broker
Cargo
Weighment at Container
Depot/ weighbridge
Container
Depot
Weighment at Shipper
premises/Registered
weighbridge
Factory Stuffed
Container
• VGM information of the
containers that shippers
provided
• VGM information when a
terminal operator weighs a
packed container on behalf of
the shipper
VGM information of the containers
that shippers provided
Provide VGM information of the
container to be loaded to carrier or
terminal operator
Lower risk of data loss/damage Increased Security Information in advance
Loaded container is weighed to gain VGM.
Information is electronically sent to Shipping Lines and Terminal Operators
Faster & Simpler workflow
eVGM-Process Flow
Vessel operator
Shipper

36. © Kale Logistics Solutions Private Limited. All Rights Reserved
ePhyto is short for “electronic phytosanitary certificate”. ePhyto is the electronic equivalent of a paper phytosanitary certificate.
The National Plat Protection Organisation(NPPO) of exporting countries issue phytosanitary certificates which need to be
directly made available for the NPPO of the importing country. ePhyto is produced, transmitted and received in XML.
Faster & Simpler workflow Lower risk of data loss/damage Time & cost saving
Increased Security Information in advance
E-Phyto flowchart
XML data transmitting
Feedback if any
NPPO of exporting country NPPO of importing country
Importers
Exporters
Blockchain in E-Phyto certificate

37. © 2018, All Rights Reserved. Data from industry publications has been used for this presentation.
This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned
herein are the trademarks or registered trademarks of their respective owners.
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9th Floor, Thane One Corporate Business Park,
Behind CineWonder Mall, Majiwada,
Thane (W), Maharashtra, INDIA - 400 610.
+91 22 4113 4113 +91 22 4113 4123
info@kalelogistics.in www.kalelogistics.in
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