Notice2025-16602
Certain Corrosion-Resistant Steel Products From Brazil: Final Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 29, 2025
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain corrosion-resistant steel products (CORE) from Brazil during the period of investigation (POI), January 1, 2023, through December 31, 2023.
Full Text
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<title>Federal Register, Volume 90 Issue 166 (Friday, August 29, 2025)</title>
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[Federal Register Volume 90, Number 166 (Friday, August 29, 2025)]
[Notices]
[Pages 42204-42207]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16602]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-863]
Certain Corrosion-Resistant Steel Products From Brazil: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain corrosion-resistant steel products (CORE) from Brazil during
the period of investigation (POI), January 1, 2023, through December
31, 2023.
DATES: Applicable August 29, 2025.
FOR FURTHER INFORMATION CONTACT: Sofia Pedrelli or Paul Senoyuit, AD/
CVD Operations, Office II, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-4310 or (202)
482-6206, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 10, 2025, Commerce published in the Federal Register
the Preliminary Determination and invited interested parties to
comment.\1\ On August 5, 2025, Commerce issued a post-preliminary
analysis.\2\ Because Commerce aligned the deadline for the final
determination in this countervailing duty (CVD) investigation with the
deadline for the final determination in the companion less-than-fair-
value (LTFV) investigation of CORE from Brazil, the deadline for this
final CVD determination is now August 25, 2025.\3\
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\1\ See Certain Corrosion-Resistant Steel Products from Brazil:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination with Final Antidumping Duty
Determination, 90 FR 9228 (February 10, 2025) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Post-Preliminary Analysis Memorandum for
the Countervailing Duty Investigation of Certain Corrosion-Resistant
Steel Products from Brazil,'' dated August 5, 2025 (Post-Preliminary
Analysis).
\3\ See Preliminary Determination, 90 FR at 9229; see also
Certain Corrosion-Resistant Steel Products from Brazil: Preliminary
Affirmative Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Extension of Provisional
Measures, 90 FR 15333 (April 10, 2025).
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For a complete description of the events that occurred since
Commerce published the Preliminary Determination, as well as a full
discussion of the issues raised by parties for this final
determination, see the Issues and Decision Memorandum.\4\ The Issues
and Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at <a href="http://access.trade.gov">http://access.trade.gov</a>. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Countervailing Duty
Investigation of Certain Corrosion-Resistant Steel Products from
Brazil,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is CORE from Brazil. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In the Preliminary Scope Memorandum, we set aside a period of time
for parties to raise issues regarding product coverage (i.e., scope) in
scope-specific case briefs or other written comments.\5\ We received
scope case and rebuttal briefs from multiple interested parties. For a
summary of the product coverage comments and rebuttal responses
submitted to the record for this final determination, and accompanying
discussion and analysis of all comments timely received, see the Final
Scope Memorandum.\6\ In the Final Scope Memorandum, Commerce made no
changes to the scope language as it appeared in the Initiation
Notice.\7\ See Appendix I.
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\5\ See Memorandum, ``Less-Than-Fair-Value Investigations of
Certain Corrosion-Resistant Steel Products from Australia, Brazil,
Canada, Mexico, the Netherlands, South Africa, Taiwan, the Republic
of T[uuml]rkiye, the United Arab Emirates, and the Socialist
Republic of Vietnam, and Countervailing Duty Investigations of
Certain Corrosion-Resistant Steel Products from Brazil, Canada,
Mexico, and the Socialist Republic of Vietnam: Preliminary Scope
Decision Memorandum,'' dated April 3, 2025 (Preliminary Scope
Memorandum).
\6\ See Memorandum, ``Less-Than-Fair-Value Investigations of
Certain Corrosion-Resistant Steel Products from Australia, Brazil,
Canada, Mexico, the Netherlands, South Africa, Taiwan, the Republic
of T[uuml]rkiye, the United Arab Emirates, and the Socialist
Republic of Vietnam, and Countervailing Duty Investigations of
Certain Corrosion-Resistant Steel Products from Brazil, Canada,
Mexico, and the Socialist Republic of Vietnam: Final Scope Decision
Memorandum,'' dated concurrently with this notice (Final Scope
Memorandum).
\7\ See Certain Corrosion-Resistant Steel Products from Brazil,
Canada, Mexico, and the Socialist Republic of Vietnam: Initiation of
Countervailing Duty Investigations, 89 FR 80204 (October 2, 2024)
(Initiation Notice).
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Verification
Commerce conducted verification of the information relied upon in
making its final determination in this investigation, in accordance
with section 782(i) of the Tariff Act of 1930, as amended (the Act).
Specifically, we conducted on-site verifications of the subsidy
information reported by Usinas Sider[uacute]rgicas de Minas Gerais S.A.
(Usiminas) and its cross-owned companies and Companhia
Sider[uacute]rgica Nacional (CSN) and its cross-owned companies in May
2025 using standard verification procedures, including an examination
of relevant sales and accounting records, and original source documents
provided by Usiminas and CSN.\8\
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\8\ See Memorandum, ``Verification of the Questionnaire
Responses of Usinas Sider[uacute]rgicas de Minas Gerais S.A.,''
dated July 11, 2025; see also Memorandum, ``Verification of the
Questionnaire Responses of Companhia Sider[uacute]rgica Nacional,''
dated July 11, 2025.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by parties, and to which we responded in
the Issues and Decision Memorandum, see Appendix II.
Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification, our post-preliminary analysis, and comments received from
parties, for this final determination, we made certain changes to the
countervailable subsidy rate calculations for Usiminas, CSN, and for
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all other producers/exporters. For a discussion of these changes, see
the Issues and Decision Memorandum.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce determines that there is a subsidy, i.e., a
financial contribution by an ``authority'' that gives rise to a benefit
to the recipient, and that the subsidy is specific.\9\ For a full
description of the methodology underlying our final determination, see
the Issues and Decision Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; see also section 771(5)(E) of the Act
regarding benefit; and section 771(5A) of the Act regarding
specificity.
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In making this final determination, Commerce relied, in part, on
facts available, including adverse facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For a full discussion of our
application of AFA, see the section ``Use of Facts Otherwise Available
and Application of Adverse Inferences'' in the accompanying Issues and
Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate for companies not individually examined
equal to the weighted-average countervailable subsidy rates established
for exporters and producers individually examined, excluding any zero
and de minimis rates and any rates based entirely under section 776 of
the Act.
In this investigation, Commerce calculated total subsidy rates for
CSN and Usiminas that are not zero, de minimis, or based entirely on
facts otherwise available. Commerce calculated the all-others rate
using a weighted average of the individual estimated subsidy rates
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period January 1, 2023, through December
31, 2023:
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Subsidy rate
Company (percent ad valorem)
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Companhia Sider[uacute]rgica Nacional; CSN 16.84
Minera[ccedil][atilde]o S.A.; Companhia
Energetica Chapeco; Companhia Estadual de
Gera[ccedil][atilde]o de Energia
El[eacute]trica.\10\.............................
Usinas Sider[uacute]rgicas de Minas Gerais S.A.; 4.39
\11\ Minera[ccedil][atilde]o Usiminas S.A.;
Usiminas Mec[acirc]nica S.A; Unigal Ltda.;
Ternium Brasil Ltda..............................
All Others........................................ 15.99
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final determination within five
days of its public announcement, or if there is no public announcement,
within five days of the date of publication of this notice in the
Federal Register, in accordance with 19 CFR 351.224(b).
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\10\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross owned with
CSN: CSN Minera[ccedil][atilde]o S.A.; Companhia Energetica Chapeco;
and Companhia Estadual de Gera[ccedil][atilde]o de Energia
El[eacute]trica. See Preliminary Decision Memorandum at 6.
\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be crossed owned with
Usiminas: Usiminas: Minera[ccedil][atilde]o Usiminas S.A.; Usiminas
Mec[acirc]nica S.A; Unigal Ltda.; Ternium Brasil Ltda. See
Preliminary Decision Memorandum at 6-7.
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Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to collect cash deposits and suspend
liquidation of entries of subject merchandise, as described in the
scope of the investigation section, that were entered, or withdrawn
from warehouse, for consumption on or after February 10, 2025, the date
of publication of the Preliminary Determination in the Federal Register
for entries produced and/or exported by CSN and all other producers and
exporters. In accordance with section 703(d) of the Act, we instructed
CBP to discontinue the suspension of liquidation of all entries of
subject merchandise entered or withdrawn from warehouse on, or after,
June 10, 2025, but to continue the suspension of liquidation of all
entries of subject merchandise between February 10, 2025, and June 9,
2025. Because the preliminary subsidy rate for Usiminas was de minimis,
Commerce directed CBP not to suspend liquidation of entries of the
merchandise from Usiminas.
However, because the final subsidy rate for Usiminas is above de
minimis, in accordance with section 705(c)(1)(C) of the Act, we are
directing CBP to suspend liquidation of all entries of subject
merchandise produced and/or exported by Usiminas that are entered, or
withdrawn from warehouse, for consumption on or after the date of the
publication of this notice in the Federal Register and to require a
cash deposit for such entries of merchandise in the amount indicated
above.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, reinstate the suspension of liquidation under section 706(a) of
the Act, and require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above,
in accordance with section 706(a) of the Act. If the ITC determines
that material injury, or threat of material injury, does not exist,
this proceeding will be terminated, and all estimated duties deposited
or securities posted as a result of the suspension of liquidation will
be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of CORE from
Brazil. Because the final determination is affirmative, in accordance
with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of CORE from Brazil no later than 45 days after this final
determination. In addition, we are making available to the ITC all non-
privileged and nonproprietary information related to this
investigation. We will allow the ITC access to all privileged and
business
[[Page 42206]]
proprietary information in our files, provided the ITC confirms that it
will not disclose such information, either publicly or under an
administrative protective order (APO), without the written consent of
the Assistant Secretary for Enforcement and Compliance. If the ITC
determines that material injury or threat of material injury does not
exist, this proceeding will be terminated and all cash deposits will be
refunded.
If the ITC determines that such injury does exist, Commerce will
issue a countervailing duty order directing CBP to assess, upon further
instruction by Commerce, countervailing duties on all imports of the
subject merchandise that are entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO, in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: August 25, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are certain flat-
rolled steel products, either clad, plated, or coated with
corrosion-resistant metals such as zinc, aluminum, or zinc-,
aluminum-, nickel- or iron-based alloys, whether or not corrugated
or painted, varnished, laminated, or coated with plastics or other
non-metallic substances in addition to the metallic coating. The
products covered include coils that have a width of 12.7 mm or
greater, regardless of form of coil (e.g., in successively
superimposed layers, spirally oscillating, etc.). The products
covered also include products not in coils (e.g., in straight
lengths) of a thickness less than 4.75 mm and a width that is 12.7
mm or greater and that measures at least 10 times the thickness. The
products covered also include products not in coils (e.g., in
straight lengths) of a thickness of 4.75 mm or more and a width
exceeding 150 mm and measuring at least twice the thickness. The
products described above may be rectangular, square, circular, or
other shape and include products of either rectangular or non-
rectangular cross-section where such cross-section is achieved
subsequent to the rolling process, i.e., products which have been
``worked after rolling'' (e.g., products which have been beveled or
rounded at the edges).
For purposes of the width and thickness requirements referenced
above:
(1) Where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set forth above, and
(2) where the width and thickness vary for a specific product
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape,
etc.), the measurement at its greatest width or thickness applies.
Steel products included in the scope of these investigations are
products in which: (1) iron predominates, by weight, over each of
the other contained elements; and (2) the carbon content is 2
percent or less, by weight.
Subject merchandise also includes corrosion-resistant steel that
has been further processed in a third country, including but not
limited to annealing, tempering, painting, varnishing, trimming,
cutting, punching and/or slitting or any other processing that would
not otherwise remove the merchandise from the scope of the
investigation if performed in the country of manufacture of the in-
scope corrosion resistant steel.
All products that meet the written physical description are
within the scope of the investigation unless specifically excluded.
The following products are outside of and/or specifically excluded
from the scope of this investigation:
<bullet> Flat-rolled steel products either plated or coated with
tin, lead, chromium, chromium oxides, both tin and lead (``terne
plate'') or both chromium and chromium oxides (``tin free steel''),
whether or not painted, varnished or coated with plastics or other
non-metallic substances in addition to the metallic coating;
<bullet> Clad products in straight lengths of 4.7625 mm or more
in composite thickness and of a width which exceeds 150 mm and
measures at least twice the thickness;
<bullet> Certain clad stainless flat-rolled products, which are
three-layered corrosion-resistant carbon steel flat-rolled products
less than 4.75 mm in composite thickness that consist of a carbon
steel flat-rolled product clad on both sides with stainless steel in
a 20%-60%-20% ratio; and
Also excluded from the scope of the antidumping duty
investigation on corrosion resistant steel from Taiwan are any
products covered by the existing antidumping duty order on
corrosion-resistant steel from Taiwan. See Certain Corrosion-
Resistant Steel Products from India, Italy, the People's Republic of
China, the Republic of Korea and Taiwan: Amended Final Affirmative
Antidumping Determination for India and Taiwan, and Antidumping Duty
Orders, 81 FR 48390 (July 25, 2016); Corrosion-Resistant Steel
Products from Taiwan: Notice of Third Amended Final Determination of
Sales at Less Than Fair Value Pursuant to Court Decision and Partial
Exclusion from Antidumping Duty Order, 88 FR 58245 (August 25,
2023).
Also excluded from the scope of the antidumping duty
investigation on corrosion-resistant steel from the United Arab
Emirates and the antidumping duty and countervailing duty
investigations on corrosion-resistant steel from the Socialist
Republic of Vietnam are any products covered by the existing
antidumping and countervailing duty orders on corrosion-resistant
steel from the People's Republic of China and the Republic of Korea
and the antidumping duty order on corrosion-resistant steel from
Taiwan. See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016); see also Certain Corrosion-Resistant Steel Products from
India, Italy, Republic of Korea and the People's Republic of China:
Countervailing Duty Order, 81 FR 48387 (July 25, 2016). This
exclusion does not apply to imports of corrosion-resistant steel
that are entered, or withdrawn from warehouse, for consumption in
the United States for which the relevant importer and exporter
certifications have been completed and maintained and all other
applicable certification requirements have been met such that the
entry is entered into the United States as not subject to the
antidumping and countervailing duty orders on corrosion-resistant
steel from the People's Republic of China, the antidumping and
countervailing duty orders on corrosion-resistant steel from the
Republic of Korea, or the antidumping duty order on corrosion-
resistant steel from Taiwan.
The products subject to the investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7210.30.0030, 7210.30.0060,
7210.41.0000, 7210.49.0030, 7210.49.0040, 7210.49.0045,
7210.49.0091, 7210.49.0095, 7210.61.0000, 7210.69.0000,
7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.6000,
7210.90.9000, 7212.20.0000, 7212.30.1030, 7212.30.1090,
7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000,
7212.50.0000, 7212.60.0000, 7225.91.0000, 7225.92.0000,
7226.99.0110, and 7226.99.0130.
The products subject to the investigation may also enter under
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000,
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530,
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060,
7217.90.5090, 7225.99.0090, 7226.99.0180, 7228.60.6000,
7228.60.8000, and 7229.90.1000.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of the
investigation is dispositive.
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Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes Since the Preliminary Determination
IV. Calculation of the All-Others Rate
V. Use of Facts Otherwise Available and Application of Adverse
Inferences
VI. Subsidies Valuation Information
VII. Interest Rate, Electricity, and Natural Gas Benchmarks
VIII. Analysis of Programs
IX. Discussion of Issues
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to Usiminas for the Ex-Tarif[aacute]rio Program
Comment 2: Whether Commerce Should Apply AFA to CSN for the Ex-
Tarif[aacute]rio Program
Comment 3: Whether the Ex-Tarif[aacute]rio Program is Specific
Comment 4: Whether Ternium Brasil is Cross-Owned with Usiminas
Comment 5: Whether the ICMS Deferral Regime in Rio de Janeiro
Confers a Benefit
Comment 6: Whether Commerce Has Basis to Investigate Allegations
of Uncreditworthiness and Unequityworthiness for TLSA
Comment 7: Whether CSN Used the Provision of Electricity for
Less Than Adequate Renumeration (LTAR) Program.
Comment 8: Whether Commerce Should Modify the Benchmark for the
Provision of Natural Gas for LTAR
Comment 9: Whether Commerce Should Revise the Benefit
Calculation for the ICMS Regime in Rio de Janeiro Program
Comment 10: Whether Commerce Should Attribute Benefit from the
Railroad Grants Program to CSN
Comment 11: Whether Commerce Should Find that TLSA is Not
Equityworthy
Comment 12: Whether Commerce Should Apply AFA to the Railroad
Grants Program for the GOB
Comment 13: Whether Commerce Should Revise its Benefit
Calculation for the Railroad Grants Program
Comment 14: Whether Commerce Should Attribute Benefits from the
ICMS Exemptions in Rio de Janeiro to CSN
X. Recommendation
[FR Doc. 2025-16602 Filed 8-28-25; 8:45 am]
BILLING CODE 3510-DS-P
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