How to Get a General Trading License in Dubai

Well, if you are a foreign entrepreneur who is planning to set up a general trading business in Dubai and grab the opportunity of this economy that has emerged now, Each industry in Dubai varies across various business options; one such is the general trading license for entrepreneurs looking to trade on a wider scale of items, which may include food products, electronics, and furniture as well.

What Does General Trading Mean?

General trading in the UAE is about the import, export, and trade of various goods and products. This encompasses just about all physical goods, including but not limited to:

• Furniture
• Electronics
• Clothing
• Toys
• Industrial equipment

Some products have certain restrictions nonetheless. Cars, alcohol, and other shipments, whether export or import, require special licenses. Less risky options, such as general trading, General trading is a flexible and attractive way to do business in which businesses can deal with all types of goods under one roof or license. By this method, there are many kinds of benefits for merchants.

Contact the appropriate authorities or an attorney experienced in UAE trade laws for details of what can be generally traded and any specific rules that must be followed, including types of products requiring additional licensing.

What is a General Trading License in Dubai?

What is a General Trading License in Dubai? The general trading license in Dubai permits business owners from different geographical locations across the globe to do trade management within the emirate. For example, food and electronics are a few lines of business they can operate under this license. It would be a basic prerequisite to start all kinds of general trading in Dubai so that entrepreneurs can carry out their business activities smoothly within the local market.

A general trading license Dubai can be different from a regular trading one in terms of its applicability, viz. A general trade license gives you the freedom to trade in multiple product categories belonging to varying industries, unlike a trading license, which restricts your business operations within one industry only. This wider authority allows companies to expand what they offer consumers and enter markets where they never imagined they would require new licenses.

Short answer: having a general trading license provides business owners with the ability to step into any business and find success in Dubai.

Also Read : Gold Trading License in Dubai – Cost & Steps Involved

How To Get a General Trading License in Dubai?

There are a number of steps to take when it comes to a general trading License in Dubai.

Step 1: Choose Your Jurisdiction

There are two major jurisdictions in Dubai for businesses: the Mainland and Free Zones.

Mainland Companies

• Licensed and regulated by the Dubai Department of Economy and Tourism (DET),.
• Needs a UAE national as a partner or sponsor.

Free Zones

• Allows for 100% ownership by the foreign investor, with no requirement for a local partner.
• Provide incentives such as a favorable tax environment, 100% repatriation of capital and profits, and easy start-up procedures for enterprises to become established.

Create access to leading-edge infrastructure, the latest in communication systems, and top-rated logistic facilities.

Dubai also has over 30 free zones, each tailored to specific industries such as technology, media, healthcare, and logistics. Important factors to consider when deciding on the free zone would be location, infrastructure, cost, and what type of license is provided. Free zones are very convenient locations for traders, and their regulations and commercial environments make them more appealing than other spots.

Step 2: Choose a Company Name

Choose a good name for your general trading business. These are the few rules you should follow for your name to get approved:

• Your name will be either spelled in Arabic or English, and it cannot have any fancy characters or icons.
• Offensive, blasphemous, or brand names are not allowed (including in other religions and countries or regions).
• The possible name cannot begin with “An Universal” or something similar.
• The database checks for duplicate names in both languages.
• Trade names are divided into classes A (premium) and B.
• No profane words or ways to offend public sense should be used in the name.
• Embassy approval is required for using the names of countries or governments.
• The name has been current for 6 months and needs to be renewed.
• The Ministry of Economy registers trademarks.
• A trade name can be used by a franchise if the agreement is registered with the Department of Economic Development (DED).
• However, not getting the trade license will lead to the cancellation of your trade name.
• DED may also cancel or modify trade names in cases of violation of the terms and conditions.
• Holders must pay the handling fee within 72 hours after payment authorization.

Next, once your name is pronounced, you can apply for a DED general trading license in Dubai.

Step 3: Apply for a General Trading License

For mainland companies (DED), submit the documents required to the Department of Economic Development or the respective Free Zone authority. What the documents usually consist of:

• Completed application form
• Copy of Passport of Shareholders
• No-Objection Letter (NOC) from the current sponsor (where applicable)
• Company name approval certificate
• A Memorandum of Association (MOA) or Local Service Agent (LSA) agreement
• Office Space Lease

Step 4: Secure Office Space

Given the tangible nature of general trading, this typically means renting out an office space for storage and any other administrative needs. Make sure the appropriate authorities have approved of it and that it is appropriate for your type of business.

Step 5: Obtain Customs Clearance

Anyone who imports commodities into the UAE needs customs clearance. You have to provide the following for customs clearance:

• Get an import code from the customs authorities.
• Pay the applicable fees.
• Register with the customs of your business emirate.

Clearance ensures that you can import goods and export them legally, hence affecting smooth trading processes.

Why You Need a General Trading License in Dubai?

Anyone who wishes to start any business activities within Dubai must first-have A General Trading License in Dubai. It acts as a legal endorsement from the law which enables you to do a lot of different types of commerce with all types of business industries. This license ensures that small business owners are able to legally start up their operations in Dubai market.

General Trading License is simply one of the licenses you will need to get in order to remain legal and up-to-date with regulations. It allows business persons to easily operate their businesses as well, opening the doors towards plenty of opportunities in Dubai economy. Irrespective of whether you are a small startup or an established corporation, getting a General Trading License is the basic requirement to succeed in Dubai’s highly competitive business landscape.

What Is A General Trading Company in Dubai?

A general trading company in Dubai is a form of business organization that has been authorized to conduct the entire range of industrial and commercial activities within the respective emirate. This can range from the trading of food, textiles, and electronics to the trading of items like furniture.

General Trading Company: Versatile Solutions With a wider horizon of businesses, unlike niche ones that restrict them to a specific business realm, General Trading Company can operate within an infinite range of sectors, which provides greater access to the various opportunities that the Dubai market offers for entrepreneurs.

In simplified terms, a general trading company acts as a one-stop shop between different commodities and industries in trade commerce. With the enormous reach of such a company, entrepreneurs have the ability to leverage all that Dubai has to offer in its dynamic business environment and burgeoning economy.

Also Read : Trade License in Dubai – Cost & Requirements

What Are the Documents Required for a General Trading License in Dubai?

The documents required to apply for a general trading license in Dubai are usually as follows, depending on whether partners of the company (shareholders) run individuals or corporate entities:

Individual shareholders: if you are establishing a company with individual shareholder(s), then please submit the following documents as well for each modern director-specimen of signature:

• ID-proof.
• A copy of your passport
• Passport-size photo
• A copy of your residence visa
• A copy of your Emirates ID

These act as proof of your identity and residency status in Dubai.

Particularly for trading companies and those with corporate shareholders, other required documents include:

Certificate of Incorporation: A legal paper acknowledging the company’s creation and being registered in government books.

Containing a list of current shareholders, directors, and officers of the company, a Certificate of Incumbency or Equivalent

Memorandum of Association: The document that describes some details about the company, such as objectives, powers, and rules.

Board resolution: To transact or carry on the type of business as defined in general trading activities and to apply for a general trading license.

These authorize individuals to represent the company in commercial transactions and certify its legal existence.

NB: document requirements may differ in each jurisdiction where you intend to set up a general trading company in Dubai. Additional formalities, like document attestation from concerned departments or a NOC (if required) from your current employer, may also be needed.

Steps to Obtaining a DED General Trading License in Dubai

Securing a General Trading License from the Dubai Department of Economic Development (DED) involves a few critical steps. Here’s a detailed breakdown of the end procedure for obtaining this license:

Document Verification and Commercial Registry

1. Commercial Registry Authority Review
   • The Commercial Registry Authority thoroughly checks and validates all submitted documents.
   • Once the documents are verified, the company name is officially added to the Commercial Registry.
2. Publication by the DED
   • The DED publishes the required documents, including the Memorandum of Association (MOA) and the company name application entry, to the Federal Ministry of Economy.

Ministry of Economy Approval

1. Issuance of Approval Letter
   • After reviewing the published documents, the Ministry of Economy issues an approval letter.
   • This approval is a crucial step in the licensing process, signifying that all legal and procedural requirements have been met.

Issuance of Trade License

1. Original Trade License and Commercial Registration
   • Upon completion of all licensing procedures, the DED issues the original trade license along with commercial registration certificates.
   • This license is valid for one year from the date of issuance.

Trade License Renewal

1. Renewal Process
   • To continue operations, businesses must renew their trade license annually.
   • The renewal application requires approval from relevant authorities and must include a copy of the previous license.
   • Once renewed, the license remains valid for another year, with a simplified renewal process extending the validity for up to five years.

Additional Information to Consider

Benefits of a DED General Trading License

• Versatility: Allows trading in a wide range of goods.
• Market Access: Enables businesses to trade both within the UAE and internationally.
• Business Opportunities: Opens up numerous opportunities due to Dubai’s strategic location and robust infrastructure.

Business Activities Under General Trading License

A General Trading License in Dubai enables businesses to engage in a diverse range of activities, catering to various sectors and markets. Here are some of the key business activities typically covered under a general trading license:

• Import and Export: Facilitating the importation and exportation of goods across international borders.
• Retail Store Operations: Establishing and operating retail outlets to sell a variety of products directly to consumers.
• Online Selling: Engaging in e-commerce activities, selling products through online platforms and websites.
• Trading Multiple Products: Dealing in a wide range of products, from consumer goods to industrial equipment, offering versatility in business operations.
• Medical Product Trading: (Requires Dubai Health Authority approval) Importing and distributing medical products, ensuring compliance with health regulations and standards.

Types of General Trading Licenses in Dubai

Dubai offers different types of general trading licenses tailored to meet specific business needs and operational preferences:

Free Zone Licenses

• Advantages: Provides 100% foreign ownership, no import duties, and a conducive environment for international trade.
• Suitable For: Businesses looking to benefit from specialized infrastructure and streamlined regulatory processes within a designated Free Zone.

Offshore License

• Advantages: Ideal for businesses focusing on international operations without physical presence in the UAE, offering tax efficiency and asset protection.
• Suitable For: Companies engaged in consultancy, holding intellectual property, or managing investments globally.

Mainland License

• Advantages: Allows businesses to operate anywhere in Dubai and engage in local as well as international trade activities.
• Suitable For: Companies targeting the local UAE market with opportunities for extensive business networking and growth.

Cost Breakdown for a General Trading License in Dubai

The cost of obtaining a General Trading License in Dubai varies based on several factors, including the number of partners, managers, and the type of business name you choose. Typically, the total cost ranges between AED 28,000 and AED 32,000. Here’s a detailed breakdown:

Cost Details:

• Trade Name Reservation: AED 620
• Initial Approval Fees: AED 120
• Tasheel Fees for Initial Approval: AED 345
• Tasheel Fees for Memorandum of Association (MOA): AED 350
• License Fees: AED 12,500 – 15,000
• DED Activity Fees (General Trading): AED 15,000
• Immigration Card: AED 750

Total Estimated Cost: AED 29,685

Additional Costs:

• Annual Rent of Premises
• Visa Costs for Investors and Employees
• 5% Annual Rent – Dubai Municipality Fees

To get more detailed information about the costs and procedures involved in acquiring a General Trading License in Dubai, or to discuss other aspects of setting up a business in the UAE, feel free to contact us. Our experts are here to assist you every step of the way.

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Advantages of a General Trading License in Dubai

Are you planning to seek general trading license in Dubai? Some reasons that none other foreign currency exchange is so attractive to Forex traders and marketers are as follows:

High-Quality Infrastructure

Dubai offers world-class infrastructure with flexible office spaces along numerous amenities. This really is an ideal situation for the companies to carry on their business years down the line. To enable untrammeled business functions the existing infrastructure of this city is such that, it will facilitate corporate aware about enlargement and success.

Easy Business Setup Process

Forming a company in Dubai is rather brief and easy. With all required documentation furnished, the complete system can be executed within 3-4 running days. This simplified process facilitates entrepreneurs to start their businesses with unnecessary delays.

Minimum Capital Requirements

Dubai – it is not necessary to provide a bank guarantee or deposit the share capital in any financial institution. On top of that the UAE corporations 100 capital repatriation, which allows purchasers to direct their finances where they benefit and reinvest in buying licenses for your business.

Low Taxation Policy

Govt slaves are moving to the UAE because it is a top-rated tax haven in the world. The tax rate on a corporation is low even where the organization must pay taxes where profits are greater than AED 375,000 for example. This makes Dubai a lucrative region for doing commercial enterprise.

No Trade Barriers

In order to reduce the cost and time of setting up a commercial enterprise Dubai. Mainland buying and selling license holders are excluded from minimum paid-up percentage capital necessities in addition to standard audits. No trade limitations on any such factor significantly improve the beneficial and maximum reasonable operation of organization.

Additional Benefits

Strategic Location

Dubai’s strategic place among Europe, Asia, and Africa makes it a high hub for global change. This geographical gain offers agencies access to a widespread market and numerous possibilities for growth.

Extensive Support Services

Dubai offers a vast range of support services for businesses, which include logistics, warehousing, legal, advertising, and economic offerings. These assets ensure that corporations have the essential gear and help prevail.

Business-Friendly Environment

The Dubai authorities have created a supportive and transparent enterprise environment. Policies and guidelines are designed to facilitate easy business operations, attracting marketers from around the sector.

Networking Opportunities

Dubai’s colourful business network offers good-sized networking opportunities. Engaging with other companies and professionals can result in treasured partnerships and collaborations, fostering growth and innovation.

Visa Sponsorship

Obtaining a general buying and selling license in Dubai makes sponsoring visas for personnel and dependents easier. This simplifies bringing skilled workers and their families to the UAE, assisting the business boom.

General Trading License in Dubai: Mainland Vs Free Zones

In Dubai, there are two basic ways to secure a general trading license: through the mainland under the Dubai economy or via free zones. Every option has its own benefits, and in our full guide to starting a business in Dubai, we can go over which might make the most sense for someone with your idea.

General Trading License in Dubai (Mainland)

Foreign investors interested in setting up wholesale and retail stores across mainland Dubai usually prefer the General Trading License by DED.

Dubai Free Zone General Trading License

General Trading License packages available at discounted prices in UAE Free Zones also help smooth the company formation process for you. IFZA is one entity that offers a complete range of services to cater to a broad spectrum of investors.

The General Trade License in Free Zones progresses investor duties by:

• Permitting foreign ownership up to 100%
• Full business control
• A simple fixed fee for the license term
• Allowing 100% profit repatriation into their home countries
• Exemption from import duty

Consequently, free zones are increasingly becoming the preferred location for free trade with applicable state-of-the-art warehousing and logistics services.

General Trading License from Dubai Mainland

A General Trade License from the Dubai Economy is an excellent choice for investors looking to start a wholesale and retail business in Dubai’s mainland. Here’s everything you need to know about obtaining and benefiting from this license:

Instant License for Quick Start

The Dubai Department of Economic Development (DED) offers an Instant License, allowing you to start your business immediately without the need for office space for the first year. After one year, you must renew the license by securing an actual office location to continue your operations both inside and outside the UAE.

Costs Involved

The cost of obtaining a general trading license on the mainland typically ranges between AED 30,000 and AED 40,000. Here’s a detailed breakdown:

• Initial Setup Cost: AED 41,683. This includes the trade license fee, virtual office space with Ejari for one year, and necessary pre-approvals.

Active Participation in Regional Trade

• Market Engagement: With a general trading license, entrepreneurs can actively engage in the vibrant Dubai market, participating in both wholesale and retail trade.
• Location Flexibility: The license allows you to open a store and office anywhere in Dubai, providing flexibility in your business operations.

Unlimited Visas and Work Permits

• Visa Capabilities: A Dubai Mainland General Trading License allows for an unlimited number of visas and work permits.
• Employee Hiring: You can hire employees based on the office space you have acquired, facilitating business growth and expansion.

100% Foreign Ownership

• Ownership Benefits: Foreign investors can obtain a General Trading License and own 100% of their mainland company.
• Full Control: This ownership structure is advantageous for investors seeking complete control over their business operations.

General Trading License from Dubai free Zone

The UAE’s Free Zones are ideal locations for establishing a General Trading Company. With over 40 Free Zones across the UAE, businesses can benefit from numerous advantages tailored to support growth and success.

Benefits of a General Trading License in Free Zones

1. Top-Notch Facilities
   • Access to state-of-the-art office spaces, logistical centers, and warehouse facilities.
   • Modern infrastructure to support efficient business operations.
2. 100% Foreign Ownership
   • Complete ownership of your business without the need for a local partner.
   • Full control over business decisions and profits.
3. No Import Duties
   • Exemption from import duties for goods brought into the Free Zone.
   • Significant cost savings on imports, boosting profitability.
4. Simplified Business Setup
   • Streamlined processes for company registration and licensing.
   • Reduced bureaucratic hurdles, allowing for quicker business setup.

Cost of a General Trading License in Free Zones

The cost of a general trading license in a Free Zone varies based on several factors, including the location, business activity, and visa requirements. Here’s a general overview:

• Basic License Package: Approximately AED 15,700, which typically includes one visa quota.
• Comprehensive Packages: Costs can rise to AED 50,000 or more, depending on additional factors such as:
  • Number of visas required
  • Specific business activities
  • Additional office space or warehouse needs

Popular Free Zones in Dubai

• Jebel Ali Free Zone (JAFZA): Known for its excellent logistics and warehousing facilities.
• Dubai Multi Commodities Centre (DMCC): Ideal for businesses in commodities trading.
• Dubai Airport Free Zone (DAFZA): Offers proximity to Dubai International Airport, benefiting businesses reliant on air freight.
• Dubai Silicon Oasis (DSO): Focuses on technology and innovation, providing modern office spaces and support services.

Why Consider Starting a General Trading Business in Dubai?

Dubai is home to several benefits from establishing a general trading business in Dubai that would eventually result in long-term success and a strong market position. In the below section, let us go through some of the compelling reasons that you should keep in mind while considering taking a general trading license in Dubai.

1. Diverse Trade Opportunities

Typically, the preferred license in Dubai gives you access to import, manufacture, and/or export a wide selection of commodities. This adaptability opens numerous doors for localized and global trade, allowing you to enter lucrative markets.

2. Low Tax Rates

There is no doubt about the lovely tax environment in the UAE. Dubai has some of the lowest tax charges in the world (including no agency or capital income taxes), making establishing a business in Dubai extraordinarily value-effective and benefiting your profits at the same time.

3. Variability of Product Trade

A popular trading license in Dubai allows you the freedom to trade almost anything with very limited regulations. That not only provides you the versatility to modify your enterprise operations based totally on marketplace needs, but additionally allows them to discover a couple of shopping opportunities and promote them.

4. Streamlined Licensing Process

A stylish trading license in Dubai is obtainable through simple, clear procedures. You can stabilize your Dubai General Trading license in a week if all necessary documents are provided by the Department of Economic Development (DED) and avoid long registration strategies, which are otherwise seen elsewhere.

5. Easy Visa Sponsorship

The preferred sales license offers visa packages for groups of workers and dependents, which is a much simpler way to obtain UAE visas and assist your business discharge.

6. Strategic global positioning

Dubai is a hub for international trade because of its strategic location at the confluence of Europe, Asia, and Africa. This localization opens up plenty of avenues for purchasing and selling businesses on an international level.

7. Exceptional Infrastructure

Dubai has international-magnificence infrastructure, including state-of-the-art warehouses, logistics groups, seaports, and airports. The simplified customs procedure also supplements the efficiency of your commercial enterprise operations and helps to ensure that goods will be delivered on time.

8. Extensive support services

Dubai lets you take advantage of hundreds of assistance services for your trading corporation. Logistics, warehousing, law enforcement, marketing, and finance are just the beginning. They have to offer you whatever it takes for your business to succeed.

9 Business Hospitable Environment

Dubai held an exceptionally accommodating and even clearer business atmosphere as compared to other of its counterparts.

10. Opportunities for networking

The rich business network of Dubai is associated with a lot of networking opportunities. Interacting with some of the businesses and specialists can bring treasured knowledge, partnerships, or growth possibilities to your trading business.

Difference Between General Trading License and Trade License in Dubai:

Dubai General Trading License: A Dubai general trading license enables companies to import, export, and trade any goods within the UAE or abroad, with the exception of items that are subject to special approvals.

Limit of the General Trading License in Dubai: The scope by which a general trading license can help you achieve results is massive compared to just having a trade. A business with a general trading license can import and export goods without any restrictions on specific exemptions.

General Trade License: A trade license is often issued to businesses that are authorized to trade in certain types of goods, and it imposes restrictions on the holder’s trading with others. Exclusive of the goods that are expressly specified in their license, businesses shall not trade them and/or use similar brand names without obtaining separate licenses.

Trade License: A trade license is only valid for the specific goods mentioned in the license. As an example, a business with a trade license that permits it to sell clothes cannot dispatch anything else without that additional license.

Why Choose RadiantBiz to Set Up Your General Trading License in Dubai, UAE?

Why Opt RadiantBiz in Dubai, UAE, for  Your General Trading License in Dubai

RadiantBiz prides itself on the knowledge and experience of its expert professionals in facilitating business setups in Dubai. Being industry experts for many years, we are well versed in local guidelines and processes, along with the best practices, making the setup process hassle-free for your general trading business.

Holistic Services: We provide you with the most complete set of services to suit your unique business requirements. RadiantBiz offers complete solutions, from company registration and license documentation to visa processing and office setups, thus helping you save time, energy, and resources.

Customized Solution: We know that each business has a different problem. This is why we are working on an individualized basis based on your specific needs and wants. We are committed to serving you and working with your team on a personal level, so we know what the goals of your organization are in order to provide solutions that matter and get results.

Transparency and Integrity: Simplicity believes in transparency and working with integrity. We trust in building a valid relationship along with our beliefs; furthermore, we see ourselves as one of the associations with which you could liaise for the long term. You can communicate freely, guidance is easy and honest to follow, and there is no unlawful practice throughout the solution delivery at RadiantBiz.

Efficient and Dependable: All services focus on efficiency and reliability. We pride ourselves on our business processes and pro-active mindset, which is why we always guarantee on-time delivery. Rest assured, your general trading business setup with RadiantBiz

Long-Term: We don’t leave you there after setup support. Our continual support and guidance could help you understand the nuances of owning a general trading business setup in Dubai. RadiantBiz stands behind you for your business aspects, be they compliance issues or growth prospects.

To sum up, opting for RadiantBiz to establish your general trading business setup in Dubai, UAE, helps you with the right mix of knowledge, a customer-centric approach, transparency, effectiveness, and an easy follow-up process, which makes us a better partner for your organization.

Start a business in Dubai with RadiantBiz. Get in touch with us for setting up business at +971 50 797 4832 or WhatsApp: +971 50 7775554. If you need help, please also contact us by email at info@radiantbiz.com.

FAQ – General Trading License in Dubai

• What is a general trading license in Dubai?
  The General Trade License in Dubai offers investors the ability to conduct international trade effortlessly, with advanced logistics and warehouse support available at Free Zones. It allows for 100% foreign ownership, total business control, fixed fees, and full repatriation of profits.
• What are the activities for general trading license in Dubai?
  A General Trading License permits engaging in various trading activities like importing, exporting, re-exporting, distributing, and storing goods, providing the flexibility to explore diverse business opportunities without constraints.
• What are general trading items in Dubai?
  General trade products in Dubai include mechanical items like ceiling fans and sewing machines, consumer products like bicycles and gym equipment, as well as kitchen appliances, food processors, brewing equipment, and garment care appliances.
• What is the cheapest trade license in Dubai?
  The IFZA Free Zone offers the most economical trade license in Dubai, priced at AED 12,900 without visas, or AED 11,900 with visa-free company setup, making it a cost-effective option for entrepreneurs.
• How much is a general trading license in UAE?
  The cost of a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000, depending on factors such as business location, warehouse size, office space, additional approvals, jurisdiction, and visa applications.
• How do I start a general trading business?
  Starting a general trading business involves developing a comprehensive business plan that considers market conditions, competition, products, employees, office space, initial investment, marketing strategies, financing, and potential investors.
• What is the difference between general trading and a trading license in UAE?
  While a trading license permits commercial activities in the UAE, a general trading license is broader, allowing companies to import, export, and distribute a wide range of goods, offering greater flexibility and scope for business operations.
• How much does it cost to renew a general trading license in Dubai?
  Renewing a general trading license in Dubai Mainland typically costs between AED 8,000 to AED 15,000, depending on the business license type. For the general trading category, the fee is usually around AED 15,000.
• How can I cancel my general trading license in Dubai?
  To cancel your general trading license in Dubai, follow these steps: review cancellation requirements, settle financial obligations, gather necessary documents, visit the Department of Economic Development (DED), submit a cancellation application, and pay applicable fees.

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