# UK Car Imports after 1st January 2021



## bottle (26 Oct 2020)

This may have been covered elsewher, but leaving aside the latest budget will there be additional taxes / duties applied to cars being imported from the UK? A car being imported up to 31st December is covered under the VRT calculator on the ROS website, but what about after?


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## Leo (27 Oct 2020)

bottle said:


> This may have been covered elsewher, but leaving aside the latest budget will there be additional taxes / duties applied to cars being imported from the UK? A car being imported up to 31st December is covered under the VRT calculator on the ROS website, but what about after?



It's covered in the section on importing a car from outside the EU, so add customs duty and VAT to the mix.


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## bottle (28 Oct 2020)

Leo said:


> It's covered in the section on importing a car from outside the EU, so add customs duty and VAT to the mix.


Thanks, I understand that part of it, but will that change the cost of a car imported from the UK On 1st Jan 2021 compared with 31st December i.e. Is there a difference in the duty and vat or is that taking potential future differences into account?


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## SparkRite (28 Oct 2020)

bottle said:


> Thanks, I understand that part of it


I'm not sure you do.



bottle said:


> will that change the cost of a car imported from the UK On 1st Jan 2021 compared with 31st December


31st Dec2020 - NO duty or VAT.
  1st Jan2021 -  PLUS duty and VAT.

So, I think the answer is a very obvious, yes.


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## Zenith63 (28 Oct 2020)

SparkRite said:


> 31st Dec2020 - NO duty or VAT.
> 1st Jan2021 -  PLUS duty and VAT.
> 
> So, I think the answer is a very obvious, yes.


Until a Brexit deal is done or no-deal is confirmed, we don't know what will happen after 1st Jan.  The worst case for importers is the UK being treated like any other country outside the EU, in whichcase you'd have to pay duty, VAT and VRT on the cost of the car.  This would be in the interest of Irish motor dealers and potentially the government who don't want more diesels coming into the market, so they may not be pushing too hard for a better deal on car imports!



> *Revenue Manual: VAT and VRT on Transactions Involving Motor Vehicles
> 10.3 Vehicles imported into the EU as a result of purchase by a private individual*
> Vehicles purchased from suppliers outside the EU are referred to as imports. Where a private individual purchases a vehicle from a person outside the EU, he or she is liable to Customs Duty and to VAT at the point where the vehicle first enters the EU. These must be paid to Customs before the vehicle will be released. It should be noted that the value of the vehicle for Customs purposes may include freight costs.


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## Protocol (28 Oct 2020)

OK, thanks.

This seems to imply that new car imports from the UK by dealers will also be affected?

Example: car made in UK, e.g. Toyota?, then exported to Toyota Ireland.


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## Zenith63 (28 Oct 2020)

Protocol said:


> This seems to imply that new car imports from the UK by dealers will also be affected?
> 
> Example: car made in UK, e.g. Toyota?, then exported to Toyota Ireland.


I guess there's more incentive to avoid that from both sides (EU and UK), because 70% of new cars sold in the UK are imported from the EU.


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## Leo (28 Oct 2020)

Protocol said:


> This seems to imply that new car imports from the UK by dealers will also be affected?
> 
> Example: car made in UK, e.g. Toyota?, then exported to Toyota Ireland.



The UK motor manufacturing industry have been very vocal about the potential impact for years at this stage. It is believed a few of them have been promised special deals to retain jobs and investment in the UK rather then lose them to EU based plants. Toyota & Nissan in particular are demanding the government subsidise them so they can cut prices on cars sold to the EU so that customers in those countries pay the same price.


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## bottle (29 Oct 2020)

Thanks for all the answers including the obvious unhelpful ones .

Looking at two of the examples of the customs duty calculation on the revenue website it seems to be either set at 0% or 12% but the examples are not car imports (I believe car imports from the US were charged at 10% with the calculatio taking the shipping costs into account), taking Zenith63’s comment above would imply that the duty rate may not yet be set for imports from the UK.

On the VAT point, if VAT has been paid in the UK already when the car was bough new, is full VAT then payable again or just the delta of what has been paid in the UK already?


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## Zenith63 (29 Oct 2020)

bottle said:


> On the VAT point, if VAT has been paid in the UK already when the car was bough new, is full VAT then payable again or just the delta of what has been paid in the UK already?


In a no-deal Brexit scenario you would pay the full Irish VAT rate on top of the VAT paid in the UK, and the shipping cost, and import duty. A VAT registered Irish company might be able to buy directly from the UK dealer ex VAT, not sure how that works post-Brexit.


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## bottle (29 Oct 2020)

Wow, that’s fairly extreme. Thanks for the response.


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## Leo (29 Oct 2020)

bottle said:


> but the examples are not car imports



WTO rules for car imports state 10%.


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## Sadim (29 Oct 2020)

Leo said:


> WTO rules for car imports state 10%.



On OMV or invoice price?


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## Leo (29 Oct 2020)

Sadim said:


> On OMV or invoice price?



Invoice, OMV plays no role in the world of WTO .


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## Sadim (30 Oct 2020)

Leo said:


> Invoice, OMV plays no role in the world of WTO .



Cheers, I think a 10% customs duty on top of VRT changes might diminish the attraction of getting a UK import.


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## Leo (30 Oct 2020)

Sadim said:


> Cheers, I think a 10% customs duty on top of VRT changes might diminish the attraction of getting a UK import.



Don't forget to add VAT as well and it will likely make little financial sense.


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## vandriver (30 Oct 2020)

Without a Brexit deal,how are all the dealers who have become reliant on UK sourced second hand cars going to source stock?
You could easily see used car prices rising.


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## Leo (30 Oct 2020)

vandriver said:


> Without a Brexit deal,how are all the dealers who have become reliant on UK sourced second hand cars going to source stock?
> You could easily see used car prices rising.



And what about the few of them who were using these as fronts for money laundering?

Seriously though there will be an increased demand that will likely result in an increase in new car sales. Remember that even if there is a trade deal that results in zero customs, the budget changes penalising older high NOx models will hit the viability of UK imports in many cases.


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## bottle (26 Dec 2020)

Any idea what the BEXIT deal means for car imports?


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## roker (27 Dec 2020)

bottle said:


> Thanks for all the answers including the obvious unhelpful ones .
> 
> Looking at two of the examples of the customs duty calculation on the revenue website it seems to be either set at 0% or 12% but the examples are not car imports (I believe car imports from the US were charged at 10% with the calculatio taking the shipping costs into account), taking Zenith63’s comment above would imply that the duty rate may not yet be set for imports from the UK.
> 
> On the VAT point, if VAT has been paid in the UK already when the car was bough new, is full VAT then payable again or just the delta of what has been paid in the UK already?


if VAT was paid in the UK should it not be refunded when exporting to Ireland before the Irish VAT is paid?


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## bottle (2 Jan 2021)

So it seems that there is 0% Customs Duty, with 21% VAT payable. Following on from Roker’s comment above, can the UK VAT be refunded before / after Irish VAT is paid.


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## Leo (4 Jan 2021)

bottle said:


> So it seems that there is 0% Customs Duty, with 21% VAT payable. Following on from Roker’s comment above, can the UK VAT be refunded before / after Irish VAT is paid.



You would need to address that with the UK authorities, but will likely differ for new and used vehicles. You can buy new for export without paying VAT there. For second hand though, most dealers only pay VAT on the profit margin which they are very unlikely to itemise on the invoice they provide you. There are a few companies specialising in exporting second-hand cars that qualified for 0% VAT on initial purchase.

Don't forget to factor in the NOx charges.


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## bottle (4 Jan 2021)

Cheers, it will be interesting to see how it all works out. I see that pre 2021 registered NI cars are exempt from VAT and Customs Duty, so would just have to sort out VRT and NOx. It really is a shame that the government continues to charge such high VRT rates on new cars bought in Ireland.


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## Baby boomer (6 Jan 2021)

bottle said:


> It really is a shame that the government continues to charge such high VRT rates on new cars bought in Ireland.


VRT is a shame, full stop.  It is an import tax by another name and should not be permitted under EU Single Market rules.  Those of us who are old enough can remember the bad old days when the Irish Government imposed excise duties (as well as Vat) on everything from alcohol and tobacco to TVs, VCRs and of course cars.  (TV dealers over the border used to offer special models for the 'Free State' - something to do with different UHF / VHF systems IIRC.)   Customs officers patrolled border roads to enforce this penal taxation on the shoulders of those already burdened with a 65% marginal income tax rate plus all the trimmings in PRSI and miscellaneous levies.  

Maastricht was supposed to change all that.  As citizens of the EU, we had the right to import tax paid goods from anywhere in the EU for personal use without suffering any further taxation.  And so it came to pass, customs posts became tumbleweed, and we merrily brought back wine on the ferry from France, cigarettes from Spain, VCRs from Belfast and much else besides.  Better still, Irish retailers emerged from their cozy hiding place behind the government skirts of protectionism and started to compete on price and quality.  And, guess what?  They actually made a go of it.  Lower prices drove sales and profits.  Win win. 

Sadly, all was not sweetness and light.  The penny had dropped in Government circles that Ireland's bloated public spending was disproportionately reliant on bleeding the motorist dry.  And so the shameful special plea was made to Brussels for a "derogation" from Single Market rules for cars.   Shamefully Brussels acquiesced in denying Irish citizens the full benefit of the Single Market.  Excise duty on cars was abolished but swiftly reborn as VRT, the bastard child of our government's insatiable appetite for taxpayers' money and EU appeasement.  It was to have been a temporary little arrangement but somewhere along the line that was quietly forgotten about.  The Irish motorist remains fleeced long after we thought economic freedom was at hand.


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## Leo (6 Jan 2021)

Baby boomer said:


> VRT is a shame, full stop.



Playing devil's advocate, is it not an effective means of taxing those who can afford it? The Irish model is higher consumption taxes on spending allowing for lower income taxes, very low property taxes, no water charges, etc.


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## bbound (6 Jan 2021)

Not sure about low income taxes?

For an average earner, VRT adds on a large percentage to any run of the mill car. That's why you see a dull selection of cars in most of irish towns and cities, no-one wants to pay extra thousands on top of the car price.

VRT is a scandal and brexit on top of it will make it much tougher for irish residents.


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## Sadim (6 Jan 2021)

roker said:


> if VAT was paid in the UK should it not be refunded when exporting to Ireland before the Irish VAT is paid?


I would be curious to know that one too. It seems like a double charge to Vat, both in the UK and EU


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## Baby boomer (6 Jan 2021)

Leo said:


> Playing devil's advocate, is it not an effective means of taxing those who can afford it? The Irish model is higher consumption taxes on spending allowing for lower income taxes, very low property taxes, no water charges, etc.


No. It's a terrible tax in every way.  It drives up the price of all cars for everyone, at all income brackets, whether they can afford it or not.  Irish people at any given income point will be able to afford less of a car than our European cousins.  We thus get lower spec models, we keep them longer, we can afford less regular maintenance and the Irish car fleet is older, of poorer quality and less safe than it otherwise should be.  

We also miss out the opportunity to have overseas dealers competing with Irish dealers and offering prices that benefit from economies of scale and disintermediation.  Cozy for the Irish motor industry of course who are more than happy to collude with the government on this one while pretending to rail against excessive motor taxation.  Notice the way they run ads highlighting the "dangers" of self importing a car from UK/NI while filling their own used car lots from that very source! 

As for higher consumption taxes allowing for lower income taxes - are you serious?  We have a marginal tax rate of 40% (plus the usual trimmings) on an income of less than 90% of the average industrial wage!  That's not low!!  Anyway, the whole thing is a sham.  It's based on the pretence that VRT isn't a consumption tax and is merely a registration fee.  That just happens to be a percentage of the pre tax price!  It is exactly the sort of inefficient and market-distorting tax that the Single Market was designed to eliminate and mostly has.  For everything except cars, it would seem.


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## Zenith63 (7 Jan 2021)

Baby boomer said:


> the Irish car fleet is older, of poorer quality and less safe than it otherwise should be.


Ireland has the newest car fleet in Europe after the UK and Austria at 8.4 years, the EU average is over 10.

Firstly I do agree that Ireland should not have the exemption to EU rules it has.  But a large part of your argument seems to be that the tax should be removed/reduced so we can drive fancier cars and replace them more often, if you applied the same argument to iPhones, watches, other luxury goods or even houses I'm not sure you'd find too much sympathy for this particular line of reasoning.


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## inflation (7 Jan 2021)

Given the state of public transport outside the cities, I'm not sure a car can be classed as a luxury item. Many people rely on them to get to/from work.


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## Leo (7 Jan 2021)

inflation said:


> Given the state of public transport outside the cities, I'm not sure a car can be classed as a luxury item. Many people rely on them to get to/from work.



They're like biscuits, they're not all luxury, but a lot of them on the roads here are.


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## bbound (7 Jan 2021)

Zenith63 said:


> Ireland has the newest car fleet in Europe after the UK and Austria at 8.4 years, the EU average is over 10.
> 
> Firstly I do agree that Ireland should not have the exemption to EU rules it has.  But a large part of your argument seems to be that the tax should be removed/reduced so we can drive fancier cars and replace them more often, if you applied the same argument to iPhones, watches, other luxury goods or even houses I'm not sure you'd find too much sympathy for this particular line of reasoning.



For me, its not having the best new car on the road but having a choice to buy what I want.  Anything older than 2008 and we are paying massive annual road tax and also high percentage of  vrt on top.
I think you are missing the point of the other poster. The vrt takes away the  choice of cars.


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## bbound (7 Jan 2021)

Leo said:


> They're like biscuits, they're not all luxury, but a lot of them on the roads here are.


Just pop over the border or over the water and you will see a much wider choice of cars on the road. And more luxurious. I wouldn't class a brand new kia for example as luxury just because its new. A 10 year old jaguar/mb might fit that bill but you will pay extortionate rates of vrt and car tax.


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## Zenith63 (7 Jan 2021)

bbound said:


> The vrt takes away the  choice of cars.


Taxes on houses mean you get less of a house here than in some other countries, taxes on iPhones mean you choose a lower spec version than you might in another country etc.  I understand that higher taxes mean there is less choice, the other poster seems to be arguing that VRT specifically is unfair/unjust because it has this effect, it is not.

There are plenty of other issues with VRT, no need to invent specious ones (our "old fleet" being another example).


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## inflation (7 Jan 2021)

_*They're like biscuits, they're not all luxury, but a lot of them on the roads here are. *_

problem is that even the own brand biscuits have a hefty VRT charge


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## ATC110 (7 Jan 2021)

If VRT was abolished other taxes would be increased or new ones created. With overly generous welfare rates and out of control public sector pay, the revenue has to come from somewhere


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## Karen boyce (14 Jan 2021)

Can anyone help me here, I purchased a car in uk early December, and I got it examined by nct and was told I would receive a message by text if cost , I rang on the 23rd ad I haven’t received text by then and was last day of holidays, I was giving a code and was told it was ready for payment as was on computer. I went to brt office to pay but the system was down.  I the. Received the text first day of reopening 4th jan at 9am.  I was told by dealer and vrt price it was 5.600 e , but I got charge the new brexit price of 10,700 I’m still sick and can’t get no where I did appeal no getting nowhere, did this happen anyone else ?


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## meepman (15 Jan 2021)

Karen boyce said:


> Can anyone help me here, I purchased a car in uk early December, and I got it examined by nct and was told I would receive a message by text if cost , I rang on the 23rd ad I haven’t received text by then and was last day of holidays, I was giving a code and was told it was ready for payment as was on computer. I went to brt office to pay but the system was down.  I the. Received the text first day of reopening 4th jan at 9am.  I was told by dealer and vrt price it was 5.600 e , but I got charge the new brexit price of 10,700 I’m still sick and can’t get no where I did appeal no getting nowhere, did this happen anyone else ?



Hi,

I would have thought the vrt price  would be from when it was imported back in 2020. What date did you go into the vrt office for car examination? 
That's how it normally works as I have imported a car in the past and as it was not listed on the vrt site I had to wait 5 days for them to supply the price via phone. However the value is taken from the date of import not from when the vrt contact you.
Are they charging you the new vrt rates including nox or the old 2020 vrt rates? Brexit has no affect on that except if duty has to be paid but I am certain that is a separate payment.

regards


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## dereko1969 (15 Jan 2021)

Baby boomer said:


> *We also miss out the opportunity to have overseas dealers competing with Irish dealers and offering prices that benefit from economies of scale and disintermediation.*


Can they compete by supplying left-hand drive cars over here?


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## Leo (15 Jan 2021)

dereko1969 said:


> Can they compete by supplying left-hand drive cars over here?



I doubt it! Don't most brands here have Irish registered companies with sole distributor arrangements?


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## Karen boyce (16 Jan 2021)

meepman said:


> Hi,
> 
> I would have thought the vrt price  would be from when it was imported back in 2020. What date did you go into the vrt office for car examination?
> That's how it normally works as I have imported a car in the past and as it was not listed on the vrt site I had to wait 5 days for them to supply the price via phone. However the value is taken from the date of import not from when the vrt contact you.
> ...


Hi there , I had it in in the 16th December, I got a stastic code on the 4 th January when I paid, to look up breakdown of cost but cones up , not available, I rang head vrt office and had told me to send an appeal as looks like I had been charged the new 2021 price and I should be refund the difference, but I have heard nothing since, it a big difference in price tho. Waiting patiently.


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## Zenith63 (16 Jan 2021)

Karen boyce said:


> Hi there , I had it in in the 16th December, I got a stastic code on the 4 th January when I paid, to look up breakdown of cost but cones up , not available, I rang head vrt office and had told me to send an appeal as looks like I had been charged the new 2021 price and I should be refund the difference, but I have heard nothing since, it a big difference in price tho. Waiting patiently.


I’ve been waiting on a VAT appeal for an imported car since August. It’s being processed apparently, but all seems to move very slowly. So you’re not alone, but I would not be checking the post each morning expecting a response any time soon.


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## Karen boyce (16 Jan 2021)

Zenith63 said:


> I’ve been waiting on a VAT appeal for an imported car since August. It’s being processed apparently, but all seems to move very slowly. So you’re not alone, but I would not be checking the post each morning expecting a response any time soon.


That’s just awful, a long time , I was told I should hear from them in 14 working days , so fingers crossed , hope I don’t need to wait that long


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## tanya65 (22 Apr 2021)

Karen boyce said:


> Hi there , I had it in in the 16th December, I got a stastic code on the 4 th January when I paid, to look up breakdown of cost but cones up , not available, I rang head vrt office and had told me to send an appeal as looks like I had been charged the new 2021 price and I should be refund the difference, but I have heard nothing since, it a big difference in price tho. Waiting patiently.


Hi Karen,
I am just wondering how you got on with your car Re VRT, I imported my car in December booked it into the VRT centre and got app for January  had to wait 2 weeks for a price and was told it was going to cost me €11,400 when it should have been €5600 huge difference I went to the guy in the VRT office and he told me that I have been charged the 2021rate and not 2020 rate and for me to send a query to Revenue on MyEnquiries I told him that I didn't have the money to pay the €11400 all I had was €5600 which it was to be that I sent a query on that day back in January and got one reply telling me there was a back log and I am still waiting have you got anywhere with your query and did you pay the full amount??  Thanks it's a total disaster if you ask me when we have the documents showing the car came into the country December 2020 and charge us the 2021 rate.


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## kitty81 (2 Jul 2021)

I have read through this thread but I am still unsure what the situation is with buying a car in NI now. We have bought in NI before and the 'only' added bill was VRT which was paid at a NCT centre. 

Can someone who has bought a used car since Jan 2021 tell me what we can expect now? From what I have read there is VRT and Custom duty, but no VAT?   

Does anyone know how the Customs Duty in calculated?

Any additional information would be appreciated!?


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## Leo (5 Jul 2021)

kitty81 said:


> Can someone who has bought a used car since Jan 2021 tell me what we can expect now? From what I have read there is VRT and Custom duty, but no VAT?


Detailed here. Talk to the NI dealer and make sure they can provide the required T2L.


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## kitty81 (5 Jul 2021)

Thats a great document, thank you. As long as T2L correct, there seems to be only be an additional Nox charge & this is included in the VRT charge! I'm pleasantly surprised, it seems fairly straight forward despite all else that Brexit graced us with.


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## Leo (6 Jul 2021)

Remember the NOx charge. Also, be suer to inspect the paperwork prior to purchasing to ensure duty was paid on import into NI. I read a report a while back that the UK government were unilaterally waiving that charge, which would then mean that car would then be liable for Duty / VAT coming south.


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