CONNECT Singapore a Smart Guide to Shipping

CONNECT Singapore A smart guide to shipping

This is your quick guide to help you connect with customers and businesses across Singapore. It’s here to help you understand the local culture, shipping requirements, regulations and key commercial opportunities to expand your business.

united problem solversTM Contents CONNECT Singapore Visit UPS.com

Singapore Overview 03 > Find out the most important facts about the markets to help you assess the potential for your business.

Economic Potential 04 > Learn about what sells where and the most popular exports and imports that may be relevant to your sector.

Business Culture 08 > Pointers on how to build successful relationships with local businesses and consumers.

Tips and Advice 09 > Useful information and directory to help you ship to and from Singapore.

Connecting with UPS 11 > A quick overview of UPS capabilities and experience and how we can help connect your business with customers across Singapore.

Contents Singapore Overview Economic Potential Business Culture Tips and Advice Connecting with UPS Singapore Overview CONNECT Singapore Visit UPS.com

Open your new trade Singapore is one of the world's most prosperous countries with strong international trade links (and one of the world's busiest ports in terms of tonnage handled) and per capita GDP that is equal to that of the leading nations of Western Europe. route to Singapore. By embracing globalization, free market capitalism, education and implementation of business friendly policies, the country has become a leader in global commerce despite its small geographic footprint.

National facts and figures

Singapore (officially known as the Republic of Singapore) Population 5,607,000 (2016)

Land Area 719.2 sq. km (2016)

Urban 100% of total population population

Languages Mandarin (official) 36.3%, English (official) 29.8%, Malay (official) 11.9%, Hokkien 8.1%, Cantonese 4.1%, Tamil (official) 3.2%, Teochew 3.2%, other Indian languages 1.2%, other Chinese dialects 1.1%, other languages 1.1%

Singapore - one the fastest growing Highly developed pro-business Expanding economy with an appetite Ranked 2nd in ease of doing business economies infrastructure for trade Singapore is one of the easiest places in the world to Singapore has a highly developed and successful Advanced and reliable telecommunication is a key Singapore's GDP has doubled in 11 years from do business. free-market economy. It is one of the world's feature of Singapore’s economy. US$ 127.4 billion in 2005 to US$ 296.9 billion in It takes about 3 days to start a business in Singapore. leading business centers and a major destination for Broadband Internet access is readily available almost 2016. An online service called CorpPass enables foreign investment. everywhere in the country, with a connectivity rate The 15th largest import market in the world businesses to transact securely with government Singapore is recognized as one of the premier asset of over 99%. (US$ 273 billion). agencies which deal with, amongst others, customs, immigration and patent issues. management centers in the region and a gateway to Singapore is one of the best protectors of The 13th largest exporter in the world Asia with a vibrant free market economy, influenced intellectual property and aids small businesses (US$ 353 billion). by its immigrant population from Asia and Europe. through advocacy and capacity building.

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Unlocking your Singapore has a highly developed and successful free-market economy. Businesses operate in a remarkably transparent and corruption- free environment that boasts stable prices and a per capita GDP which is higher than that of most developed countries. Unemployment potential. is low. For a country that has a shortage of land and natural resources, Singapore's economic ascension is nothing short of exceptional.

Its strong business and regulatory policies, sectors are also likely to provide support to the strategic geographic position, vast natural Singapore economy. seaport, highly skilled workforce and favorable According to the Doing Business Study from 2017 tax regime have created an ideal environment Singapore is ranked one of the highest in four areas: for businesses to flourish. starting a business, dealing with construction permits, Singapore's economy depends on exports in registering property and paying taxes. consumer electronics, information technology products and pharmaceuticals. Singapore is ranked Reasons to invest in Singapore 11th on Foreign Exchange and Gold Reserves with Currency Singapore Dollar • Open to foreign investment and a business friendly US$ 256.9 billion, which is a key indicator of GDP (US$) 296,966 billion (2016) government economical stability. GDP Per 52,960 (2016) • Protection of invention and innovation (intellectual Capita (US$) property (IP) regime) An attractive and stable macroeconomic Manufacturing 19.6%, • Competitive tax rates and tax laws environment Business Services 15.8%, Wholesale and Retail Trade 14.2%, GDP by Industry • Diversified economy Rapid industrialization plus pro-Foreign Direct Finance and Insurance 13.1%, Transportation and Storage 7.6%, • Comprehensive approach towards key pillars of the Investment policies, have transformed the city-state Construction 5% (2016) economy, such as petrochemicals, electronics and into a highly attractive location for foreign capital. Total Imports (US$) 283 billion (2016) (up by 15.1% since 2009) clean energy Singapore’s government forecasts GDP to grow Total Export (US$) 329.9 billion (2016) (up by 22.3% since 2009) • An initiative called "Future Singapore" to design, between 1 - 3% in 2017. China 12% develop and test new ideas in the areas of urban Hong Kong 11% living, wellness, ageing, healthcare and lifestyle Per the Research, Innovation and Enterprise (RIE) Singapore’s Top Malaysia 12% products and services 2020 plan, the country plans to invest US$ 19 billion Export Partners Indonesia 10% EU 9% • Proximity to China - strong trade and business ties into science and technology, with focus on core U.S. 5.5% with Beijing technological domains: advanced manufacturing China 11% • Free trade philosophy (Singapore is one of and engineering, health and biomedical sciences, Malaysia 11% Singapore’s Top U.S. 9% the strongest advocates in the world of this sci-tech services and the digital economy and urban Import Partners South Korea 8% philosophy) solutions. Manufacturing, transportation and storage Japan 6% Indonesia 5% 04

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Key industries. Manufacturing and Services sectors are the twins pillars supporting Singapore's diversified economy. These sectors contribute 20% and 60% to Singapore's GDP respectively. The most prominent industries within these sectors, which aid in the sustainable economic growth of Singapore, include: electronics, chemicals, biomedical sciences, logistics and info-communications and media.

Electronics Pasir Ris Wafer Fab Park Singapore's strong fundamentals in the electronics industry make it easier for multi-national electronic companies to create and manage new markets, products, processes, technologies Loyang Industrial Park and applications for the region and beyond. Advanced Display Park The electronics industry represents a third of local manufacturing, and semiconductors make Jurong Industrial Park Seletar Aerospace Park up about 70% of electronics manufacturing output. Singapore Singapore accounts for 11% of the global market’s share of semiconductor wafer foundry Biopolis output. Singapore continues to be a world-class semiconductor hub as the industry has successfully attracted substantial foreign investment, contributing over 25% of semiconductors Ang Mo Kio Industrial Park manufacturing output, through its conducive environment for manufacturing innovation and Tuas Biomedical Park international collaborations. Singapore Science Park Automotive Singapore is a preferred location for global automotive companies to carry out corporate Biopolis - the biomedical R&D facility that allows public and private sector experts to collaborate activities, spares distribution, production of high-value products and research and through intensive research and training programs. It enables researchers to access state-of-the- development (R&D). art facilities, scientific infrastructure and specialized services, allowing companies to cut R&D Almost all the major Original Equipment Manufacturers (OEMs) and Tier 1 automotive costs and accelerate development timelines. suppliers use Singapore to oversee their regional operations. They also have a regional logistics base to manage their aftermarket spares distribution to the region. Singapore’s excellent Aerospace physical and trade connectivity, strong mechanical engineering base and established financial Singapore’s aerospace industry has grown at an average rate of 10% in the last two decades. infrastructure support the growth of related automotive R&D in Singapore. The longer-term Singapore has become the leading aviation hub in Asia-Pacific, contributing over a quarter share trends include the emergence of smart cars, which will drive semiconductor demand in the of the region’s Maintenance, Repair and Overhaul (MRO) output and is the most comprehensive automotive industry. Aerospace Maintenance, Repair and Overhaul hub in Asia. Singapore is also seeing a growing number of aerospace design and manufacturing operations Healthcare leveraging off existing capabilities in precision engineering and electronics. Singapore is an ideal base to design, develop, test-bed and launch new healthcare solutions and systems to make inroads to regional and global markets. The Government is committed to driving innovation that addresses the rising costs and Seletar Aerospace Park - dedicated aerospace park allows companies to reap the benefits inefficiencies in healthcare systems worldwide. of a world-class business infrastructure, complete with runway access. Investments in R&D include commitments from Boeing, EADS, Pratt and Whitney and Rolls-Royce to partner Singapore has established platforms which allow healthcare service providers to work with Singapore’s A*STAR and its research institutes to jointly carry out aerospace-related research. partners from various industries (IT, medical equipment, pharmaceuticals, nutrition and consumer lifestyle) to co-develop and test-bed new products.

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Future proof Singapore. Singapore is playing a lead role in driving the demand for the development of innovative solutions. The country is focusing on accelerating process transformation for various industries through the use of robotics.

Singapore is pushing into advanced The hotel of the future manufacturing with the government helping According to the Singapore Industrial Automation businesses make better use of technology and Association (SIAA), the Hotel sector has initiated automation. automation of services to enhance customer experience The 2017 budget includes a myriad of initiatives to and productivity. To create the hotel of the future and bolster the National Robotics Programme (NRP) and address increasing demands from more visitors, while Industry Transformation Programme so that industrial simultaneously tackling competition for the same labor automation can reach US$ 2 billion in 2017 as per the pool, robots are being introduced to serve guests and Economic Development Board (EDB) target. help with hotel maintenance tasks, such as food delivery and hotel room service. Integral components of future economy The government is encouraging the public and Robots in the warehouse private sector research performers to undertake the The Singapore Government is committing US$ 2.8 development of upstream robotics technologies to million to develop the next generation of start-ups in differentiate Singapore over the longer term. supply chain and logistics. The project includes robots Precision sensors/instrumentation, micro-electrical that will assist workers who are picking products off the machining systems (MEMS) and 3D printing are Robots at work shelves in warehouses, in the process freeing up workers expected to be critical components of Singapore’s long- Manpower-intensive industries such as to focus on providing higher quality service. term economic growth plans. Hospitality and Logistics are finding it hard Currently 400 local and international companies to employ enough Singaporeans to take on participate in a government sponsored scheme to jobs. This is giving way to the rise of robotics in help them adopt 3D printing as part of their business. these industries. A further 1,000 companies will be invited by the government to innovate through the use of 3D printing technologies.

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Most Developed eCommerce in Singapore (domestic & international) has grown by 15-20% in 2016. According to analysts, eCommerce penetration in the country will increase to 21.7% by 2017 and reach 24.5% by 2021. Online Retail Market in Southeast Asia.

eCommerce Market According to a study by PayPal when shopping online, Singaporeans look beyond tangible goods and desire authentic experiences that reflect their passions and Although Singapore has the smallest population in Southeast Asia, its online interests. retail market in 2016 ranked third in the region because of factors like advanced infrastructure, high rates of Internet penetration and the open customer attitude Savvy Singapore towards eCommerce. According to EY’s Savvy Singapore report, phones and tablets are used everywhere, Singapore’s eCommerce market contains a large share of cross-border imports. especially in public places, and for everything, from social networking (98%) to online Over half of online consumers completed purchases through foreign retailers, using research (81%) daily. platforms like Alibaba and Amazon. The top purchases are fashion items and the Consumers in Singapore are open to new digital experiences, such as mobile fastest growth is expected to be on household goods and groceries. payments, music streaming, and buying from more online retailers. More than half expect a high quality digital experience as a prerequisite before Spending habits of the Singapore consumer purchasing, and they also judge a company by its online presence. The consumer in Singapore enjoys a high standard of living and is a keen buyer of Four-in-five say they discover new products and services through online research, and foreign products. Lifestyle spending is becoming more popular. Consumers and the majority expect websites to be optimized for mobile viewing. merchants are open to a world of opportunities in the new global economy, and no Survey results showed that Singaporeans are turning their attention to spending on other group is taking greater advantage of this than the millennial generation. day-to-day items. Results indicate an increasing growth in mobile expenditure as Singaporeans are also very loyal and cautious towards exploring alternatives. Singaporeans spend more time on their mobile devices, with mobile shopping spend The purchasing power per capita is above that of most European countries. predicted to increase by 42% in 2017. Consumers consider price, quality and service when making purchasing decisions. After sales service is also very important.

The online retail market is The eCommerce market is expected Singapore is the most developed projected to see double-digit to make up 6.7% of all retail sales. 5.4b$ eCommerce market in Southeast growth rates by 2025. Asia, expected to be worth US$ 5.4 billion by 2025.

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Understanding local Singapore is a cosmopolitan country and generally keeps to international standards of business. Due to Singapore's multi-racial and multi-religious society, as a rule, avoid discussions about topics like religion, racial issues and politics. Singaporeans control business culture is the their behavior and emotions in public. Do not confront or criticize other people openly and employ an indirect communication foundation of your success. style. Singapore’s business culture is very competitive and a strong work ethic is highly valued.

Meetings Business Culture Customer Service Holidays • Appointments are necessary and should • English is the language of business and • Singapore residents generally have a National holidays are governed under the be made at least 2 weeks in advance. administration, and is widely spoken. high expectation of customer service Employment Act of Singapore and enforced Punctuality is necessary to create a good • Business smart dress code. Men should and businesses have put a lot of effort by the Ministry of Manpower. impression. wear shirts, ties and slacks. Jackets are to improve as they believe that excellent Businesses may be impacted during national • Send the meeting attendees list with their usually not required. Women should customer service is critical. holidays, except for the hospitality industry. title in advance. wear blouses with sleeves. • 10 years ago, Singapore created the The business week is generally between • The elderly or the person with the highest • Respecting an individual's personal Go the Extra Mile awards to encourage Monday and Friday, while Saturdays and status is introduced first. space is very important, and one should improvements in customer service. Sundays are considered rest days. maintain reasonable distance during • To improve their customer service • Business cards are exchanged after the • New Year’s Day (1st January) initial introductions (using both hands). business interactions. and increase trade, service industries • Chinese New Year* (28th and 29th January) It is good to have one side of your card • Singaporeans are afraid of being can tap into the Customer-Centric translated into Mandarin and the Chinese embarrassed. Communication needs to Initiative (CCI) and CCI Plus (for SMEs) • Good Friday* (14th April) characters. Hand your card so the text be subtle and attention must be paid to programs which offer specially tailored • Labor Day (1st May) assistance packages for Singapore-based faces the recipient. Examine business non-verbal cues such as body language • Vesak Day* (10th May) cards carefully. and facial expressions. companies to upgrade service standards. • Hari Raya Puasa* (25th June) • There will be period of small talk before • Singaporeans retain strong hierarchical • Continuing Education and Training th getting down to business discussions. relationships. The elderly are always (CET) centers have been established to • National Day (9 August) increase customer service awareness st • Singaporeans are strong negotiators - be treated with the utmost respect. • Hari Raya Haji* (1 September) and provide quality adult training. prepared with a mental list of concessions • There are cultural differences in how the • Deepavali* (18th October) • CET centers undergo a rigorous you would be willing to make that would three main ethnic groups treat gifts: • Christmas Day (25th December) accreditation and Continuous not harm your own business.  ethnic Chinese: gifts may be initially being Improvement Review process to • Backup materials, including charts and turned down, due to feeling unease over maintain the standards and quality figures, should accompany presentations. the expense incurred by giver. of training delivered. Course fees can • It is very important to present  ethnic Malays: never give alcohol or be funded up to 90% and company commitment to a long-term relationship. pork products as gifts. sponsored trainees receive additional  ethnic Indians: if you give flowers, Absentee Payroll support. * The above dates are based on 2018. They are subject to avoid frangipani as they are used in change and may vary by year based on Lunar, Hindu or funeral wreaths. Avoid giving leather Islamic calendars. products to a Hindu as the cow is seen as sacred.

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Useful things to remember If you are thinking of shipping to or from Singapore, help is at hand. Wherever you are, visit UPS.com to get detailed help on everything you need to know about sending export and import shipments. You’ll find guidance on determining shipping costs; when shipping to and how to prepare for an export shipment; how to book and track shipments and how to process payments and deal with returns. from Singapore. Below are some important rules, tools and support resources to get you started.

Ship to Singapore Ship from Singapore Online Tools

Unique Customs Information Unique Customs Information A range of tools is available from UPS that can help you with your shipping needs. Visit www.ups.com for these tools. All goods imported into Singapore are regulated. Goods exported from Singapore are regulated under the Customs Act, To import goods into Singapore, a declaration to Singapore Customs is the Regulation of Imports and Exports Act, the Strategic Goods (Control) Accurate cost and delivery time Act, and other legislation by the relevant Competent Authorities (CAs). required. Calculate Time and Cost: Find delivery dates, time and shipping The Pollution Control Department and National Environment Agency are To export goods from Singapore, you are required to declare the goods costs for UPS services. to Singapore Customs. Goods and Services Tax (GST) and duty are not actively involved in the control of imports of goods. Days of Operation: Find UPS-observed holidays in Singapore. levied on goods exported from Singapore. Imports of all pre-recorded tapes, CDs, DVDs, etc. are controlled. A Customs export permit is required for: Better knowledge of customs requirement Non-document shipments to Singapore must include 1 original and 2 copies Import/Export Country Regulations: Click here for country-specific of an invoice. A detailed description of the merchandise and consignee's • Export of locally manufactured goods or local GST-paid goods facts and requirements that may impact your international telephone number is required on the invoice. • Export of goods from the Free Trade Zone (FTZ) • Export of dutiable goods from a licensed warehouse shipment. A ‘Temporary Import Scheme’ is offered for goods that are imported for only • Export of non-dutiable goods from a zero-GST warehouse, Effective and efficient shipping process six months or less (e.g. sports equipment, sales demos, scientific goods for and goods under the Major Exporter Scheme ® repairs). • Re-export of goods imported under the Temporary Import UPS Import Control . Take control of your inbound international shipments and minimize delays and errors. Restrictions Scheme • Temporary export of goods intended to be re-imported UPS Paperless Invoice: Electronic commercial invoices speed data to Controlled goods require proper authorization (advance notification, customs. license or certificate approval) from Competent Authorities (CAs) before Restrictions they may be imported into Singapore. Controlled goods require proper authorization (advance notification, UPS TradeAbility®: A suite of Web-based tools to help manage and If the item is subject to control, the name of the CA will be indicated next license or certificate approval) from Competent Authorities (CAs) before track international trade. to its HS code. Check directly here they may be exported from Singapore. Flex™ Global View : Supply-chain visibility for enterprises with a global Check if the goods are controlled using the description of the goods, reach. Tariffs Harmonized System (HS) code or CA product code. Imported goods are subject to Goods and Services Tax (GST) and/or duty You may check directly here Quantum View™ Manage: Get up-to-date information about payment. A Customs permit is required to account for the import and tax shipments you send, or those you’re expecting, from one Web-based payment of the goods. Tariffs tool that is easily customizable. Shippers of returned goods will need to work with their respective carriers Singapore is a major hub for transnational shipments. It operates a range UPS Marketable Label: Allow businesses to utilize custom label as for GST refund. Carriers may impose additional fees to facilitate this of Free Trade Zones where duty and other taxes are suspended for a direct mail platform to enhance customer experience and generate process. period of up to 30 days. additional revenue. Dutiable goods, which incur both GST and duty are: alcohol, tobacco products, motor vehicles and petroleum products. Documentation The importing documents must be kept for five years.

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Useful links and reference information.

Useful Links Sources & References

Economic Development Board (EDB) eDiplomat Central Intelligence Agency Commisceo Global Consultancy Ltd. World Trade Organization Ministry of Manpower (MOM) Singapore Business Review Ernst & Young Global Limited Singapore Customs Singapore Customs Prohibited Articles Business Wire Singapore Customs CMO Innovation Future Ready Singapore Contact Singapore Export.gov Government Technology Agency of Singapore (GovTech) Research and Markets DM Advisory Channel NewsAsia Channel NewsAsia Immigration & Checkpoints Authority of Singapore (ICA) Online Shopping Marketplace - Singapore V2 SPRING Singapore Singapore Statutes Marketing Magazine The Straits Times Singapore Government Online Search KPMG Dezan Shira & Associates Santander Singapore EDB Healthcare The World Bank Group Singapore EDB Electronics CEIC Singapore EDB Aerospace World’s Top Exports Infocomm Media Development Authority Department of Statistics Singapore TODAY Future Ready Singapore ScienceDaily The Organisation for Economic Co-operation The Business Times and Development The Straits Times ZUU Online Statista ASEAN Briefing SIAA Department of Statistics Singapore Channel News Asia

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Partnering for Whatever your needs are across Singapore and the globe, import or export, business or consumer – UPS has the expertise in global logistics to help you succeed. With access to our comprehensive service portfolio you can capitalize on international market maximum potential. potential. The UPS network will connect you with your customers in Singapore, Asia region and beyond, giving you the reassurance of our experience and the latest technology on your side to help you succeed.

Up-to-Date Information UPS' Singapore delivery fleet has begun utilizing telematics technology. The proprietary system works in conjunction with the Delivery Information Acquisition Device (or DIAD – a handheld device used by UPS drivers during deliveries) to gather data for analysis to improve safety, service and performance throughout UPS’s service network. Along with improvements to network utilization and schedule planning, the DIAD V maximizes service efficiency to ensure that UPS is well equipped to keep tabs on the pickup and delivery of packages, no matter the volume. This ensures that you are kept up to date with the latest status of your packages to and from Singapore. Advanced Healthcare Capabilities UPS Singapore has healthcare facilities to serve the rapid growth of Singapore’s healthcare businesses. The facility in Singapore includes cold chain capabilities for products requiring temperature-sensitive storage and distribution, as well as postponement services such as re-labeling and kitting. Domestic Service UPS is the only integrator that offers domestic delivery in Singapore, providing a “one-stop” solution with all of the logistics services that businesses with Singapore operations would need. We offer Express and Express Saver® domestic services with 1 business day delivery commitment and different delivery timings to cater to your business requirements. This service also reduces your time spent on managing multiple providers for international and domestic delivery and improves security of your shipments, as UPS is the sole logistics provider. Brokerage and Customs Expertise UPS is a TradeFIRST premium and Secure Trade Partnership-Plus certified service provider in Singapore. This means expedited customs clearance and reduced rate of inspection checks, as well as a dedicated customs personnel to help navigate customs requirements and regulations for your shipments to Singapore. With over 80 years of extensive knowledge and industry experience, UPS makes exports to Singapore smoother and hassle-free.

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Delivery commitment from Singapore

To Canada 2 days

To U.S.A. 2 days

To Russia 2 days

To the UK 2 days

To Belgium 2 days To Germany 2 days To France 2 days To South Korea 1 day To Italy 2 days To Spain 2 days To China 1 day To Japan 1 day To the Rest of Europe 2 days To Hong Kong 1 day To Africa Region 2 days To Taiwan 1 day To Vietnam 1 day To Middle East Region 2 days To Thailand 1 day

To the Rest of Asia Pacific1 day To the Philippines 1 day

Region To Malaysia 1 day

Asia Pacific To Indonesia 1 days Europe To Latin America Region 3 days

North America To Australia 1 day Middle East

Africa

Latin America

*Based on the earliest delivery times by UPS Worldwide Express service and may vary by origin and destination postal codes. Time-in-transit can be subject to change without prior notice. Please visit ups.com for guarantee details, service availability and commitments before shipping. Certain commodities and high-value shipments may require additional transit time for customs clearance. The above information is updated as of July 2017. 12

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Delivery commitment to Singapore

From Canada 3 days

From U.S.A. 3 days

From Russia 2 days

From the UK 2 days

From Belgium 2 days From Germany 2 days From France 2 days From South Korea 1 day From Italy 2 days From Spain 2 days From China 1 day From Japan 1 day From the Rest of Europe 2 days From Hong Kong 1 day From Africa Region 2 days To Taiwan 1 day From Vietnam 1 day From Middle East Region 3 days From Thailand 1 day

From the Rest of Asia Pacific1 day From the Philippines 1 day

Region From Malaysia 1 day

Asia Pacific From Indonesia 1 day Europe From Latin America Region 3 days

North America From Australia 1 day Middle East

Africa

Latin America

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