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Release Date :
Reference Number :
2015-70

 

Retail sale in non-specialized stores lead among industries

Preliminary results of the 2013 Annual Survey of Philippine Business and Industry showed that a total of 8,392 establishments with total employment of 20 and over in the formal sector of the economy were engaged in Wholesale and retail trade; repair of motor vehicles and motorcycles.

More than half (56.4%) of the total establishments were engaged in retail trade activities. Among industries, retail sale in non-specialized stores had the highest number of establishments with 1,429 or 17.0 percent of the total count. Retail sale of other household equipment in specialized stores ranked second with 1,173 establishments or 14.0 percent share, followed by retail sale of other goods in specialized stores with 1,082 establishments or 12.9 percent.

Other leading industries with more than five percent share in terms of the number of establishments were as follows:

  • Wholesale of household goods, 803 establishments (9.6%)
  • Wholesale of food, beverages and tobacco, 793 establishments (9.4%)
  • Other specialized wholesale, 553 establishments (6.6%)
  • Retail sale of automotive fuel in specialized stores, 472 establishments (5.6%)
  • Wholesale of machinery, equipment and supplies, 434 establishments (5.2%)

Figure 1 shows the percentage distribution of establishments with total employment of 20 and over for Wholesale and retail trade; repair of motor vehicles and motorcycles by industry group in 2013.

 

 

Across regions, National Capital Region (NCR) the center of business and industry had the most number of establishments with 3,539 (42.2%) establishments. CALABARZON and Central Visayas placed far second and third with 859 (10.2%) and 708 (8.4%), respectively (See Table 2).

 

Retail in non-specialized stores industry employs the highest number of workers

Total employment in 2013 reached to 464,523 workers. Paid workers comprised the majority of the workforce with 462,886 (99.6%).The rests of the workers were working owners and unpaid workers.

Retail sale in non-specialized stores employed the largest workers among industries with 130,834 employees or 28.2 percent of the total. Wholesale of household goods followed with 56,846 employees (12.2%). Ranked third was retail sale of other goods in specialized stores with 44,311 employees or 9.5 percent. Non-specialized wholesale trade employed the least with 450 employees only. (See Figure 2).

 

Among regions, NCR generated jobs to nearly half (49.3%) or 229,219 employees. CALABARZON and Central Visayas, followed a far with 38,826 (8.4%) and 37,399 (8.1%) employees, respectively.

The average number of workers per establishment of the sector was recorded at 55 in 2013. Retail sale in non-specialized stores recorded the highest ratio of 92 workers per establishment.

 

Total compensation disbursements reach PHP80.1 billion

In 2013, the sector paid a total compensation of PHP80.1 billion, equivalent to an average annual compensation of PHP173.0 thousand per paid employee.

The top three industries accounted for nearly half (49.6%) of the total compensation payment of the sector. These are retail sale in non-specialized stores paying the highest compensation of PHP17.6 billion (22.0%) of the total, followed by wholesale of household goods with PHP13.8 billion (17.2%). Retail sale of other goods in specialized stores ranked third with PHP8.4 billion (10.5%). 

Across regions, employers in NCR spent the biggest share in total compensation amounting to PHP51.9 billion (64.8%). CALABARZON placed second providing an amount of PHP6.3 billion (7.8%) while businesses in Central Visayas disbursed PHP4.6 billion (5.8%). Workers in ARMM received the lowest compensation of PHP12.8.0 million.

 

Workers of wholesale of machinery, equipment and supplies are highest-paid employees

Workers of wholesale of machinery, equipment and supplies establishments were the highest-paid employees of the sector receiving an average annual compensation of PHP258.2 thousand per annum translating into an average monthly compensation of PHP21,520. Wholesale of household goods employees followed next with PHP242.3 thousand. Employees of other specialized wholesale came in third with annual compensation of PHP206.0 thousand. On the other hand, those employed in retail sale of automotive fuel in specialized stores were paid with PHP106.7 thousand or monthly compensation of PHP8,891 (Figure 3).

 

Retail sale in non-specialized stores generates the biggest share in income

In 2013, gross income generated by the sector reached PHP2.45 trillion. The top three grossers in terms of income accounted to more than half (50.7%) of the total.  These are the following:

  • Retail sale in non-specialized stores, PHP517.6 billion (21.1%)
  • Other specialized wholesale, PHP380.4 billion (15.5%)
  • Wholesale of household goods, PHP345.5 billion (14.1%)

Figure 4 shows the top five industry groups in terms of income distribution for 2013.

 

Across regions, NCR earned more than half (58.9%) of the total income of the sector amounting to PHP1.4 trillion. Income for other next in rank regions were the following: CALABARZON with PHP221.8 billion (9.0%), Central Luzon with PHP165.0 billion (6.7%) and Central Visayas with PHP144.3 billion (5.9%).

 

Total expense amounts to PHP2.35 trillion in 2013

Total expense, including compensation incurred to operate a business in 2013 amounted to PHP2.35 trillion. Being the major contributor in income, retail sale in non-specialized stores had the largest proportion in expense with PHP497.4 billion (21.2%).  Other specialized wholesale and wholesale of household goods followed with PHP362.5 billion (15.4%) and PHP327.6 billion (13.9%), respectively. On the other hand, wholesale on a fee or contract basis incurred the lowest expense of PHP1.5 billion.

Regionwise, NCR incurred highest expense amounting to PHP1.4 trillion (58.8%). Other regions with highest expense reported were as follows: CALABARZON with PHP212.8 billion (9.1%), Central Luzon with PHP159.2 billion (6.8%) and Central Visayas with PHP135.0 billion (5.7%).

In 2013, the income per peso expense for the sector stood at 1.04, which means that for every peso spent by the establishment PHP1.04, was generated. Among industries, wholesale on a fee or contract basis exhibited the highest and surpassed the national average with 1.15 income per peso expense.

At the regional level, Cagayan Valley posted the highest among regions at 1.08. Other regions which recorded ratio more than the national average were the following: Ilocos Region (1.07), Central Visayas (1.07), Cordillera Administrative Region (1.06) and Autonomous Region in Muslim Mindanao (1.05).

 

Value added stands at PHP224.4 billion

Value added of the sector was estimated at PHP224.4 billion in 2013.

The top five industries that contributed a combined 67.1 percent share to the total value added were the following:

  • Retail sale in non-specialized stores, PHP46.7 billion (20.8%)
  • Wholesale of household goods, PHP38.5 billion (17.2%)
  • Other specialized wholesale, PHP30.2 billion (13.5%)
  • Wholesale of food, beverages and tobacco, PHP18.5 billion (8.3%)
  • Retail sale of other household equipment in specialized stores, PHP16.6 billion (7.4%)

The leading industries in terms of value added is shown in Figure 5.

 

On the regional level, NCR contributed the largest value added of PHP139.6 billion (62.2 %),  followed distantly by CALABARZON and Central Visayas with PHP19.1 billion (8.5 %) and PHP15.6 billion (7.0%), respectively.

 

Other specialized wholesale industry generates the highest labor productivity

Value added per employee, a measure of labor productivity of the sector was estimated at PHP483.0 thousand. Other specialized wholesale industry generated the highest labor productivity of PHP1.1 million while maintenance and repair of motor vehicles recorded the lowest with PHP197.4 thousand. Workers from NCR were the most productive among regions with PHP608.8 thousand.

 

Gross margin reaches PHP361.9 billion

Gross margin or trade margin in 2013, which is defined as the gross output of the sector reached PHP361.9 billion. The top five industries that contributes 73.1 percent of the total gross margin of the sector were as follows:

  • Retail sale in non-specialized stores, PHP82.7 billion (22.8%)
  • Wholesale of household goods, PHP70.5 billion (19.5%)
  • Other specialized wholesale, PHP46.9 billion (12.9%)
  • Wholesale of food, beverages and tobacco, PHP34.4 (9.5%)
  • Retail sale of other household equipment in specialized stores, PHP30.2 billion (8.4%)

The percentage distribution of industries to gross margin is shown in Figure 6.

 

Gross additions to fixed assets accumulates to PHP12.6 billion

Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP12.6 billion in 2013.

Retail sale in non-specialized stores acquired the biggest gross addition to fixed assets with PHP3.5 billion (28.1%), followed by other specialized wholesale with PHP2.6 billion (20.8%) and wholesale of household goods with PHP1.6 billion (12.6%). Regionwise, NCR recorded the highest gross addition and accounts to more half (52.9%) of the total value amounting to PHP6.7 billion.

 

Total change in inventories amounts to PHP40.8 billion

Total change in inventories, defined as ending less beginning inventory, amounted to PHP40.8 billion in 2013. Wholesale of food, beverages and tobacco had the highest change in inventory of PHP6.9 billion (17.0%) of the total. Other specialized wholesale followed next with PHP6.6 billion (16.3%). Retail sale in non-specialized stores came in third with PHP5.9 billion (14.5%).

Among regions, NCR had the highest change in inventories of PHP25.5 billion (62.5%).

 

Government grants PHP2.2 billion subsidies in 2013

Total subsidies received by the sector from the government amounted to PHP2.2 billion in 2013.

Wholesale of food, beverages and tobacco and retail sale in non-specialized stores establishments both located in NCR received subsidies from the government amounting to PHP2.1 billion and PHP62.7 million, respectively.

 

Sales from E-commerce transactions reach PHP576.0 million

Sales from e-commerce transactions of the sector were valued at PHP576.0 million. Other specialized wholesale posted the highest value of PHP285.0 million (49.5%) and most of these establishments were located in NCR.

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcylcles sector for establishments with total employment of 20 and over.

The 2013 ASPBI is one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA).  Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2013.

Legal Authority

The conduct of the ASPBI is governed by authority of the following legislative acts and presidential directives:

  • Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities).  It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.  

      Section 27 of Republic Act No 10625 states that:

     "... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) yearimprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthfulcomplete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against, such corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."

       Confidenciality of Information

  • Republic Act 10625 (Philippine Statistical Act of 2013)

     Section 27 of RA 10625 states that:

      "... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year,

  • Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and employees dated February 20, 1989)

     Section 7 of RA 6713 states that:

      "... (c) Disclosure and/or misuse of confidential informatiom.  Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either:  (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."

Scope and Coverage

The 2013 ASPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector: 

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  Single proprietorship with branches

Hence, the 2013 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 or more, and;
  • All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

The initial estimate of the 2013 List of Establishments (LE), the frame used to draw the sample establishments for the 2013 ASPBI, registered a total of 941,000 establishments in operation nationwide in 2013. Out of this number, 72 percent or 678,000 establishments belong to the informal sector and only 28 percent or 263,000 establishments made up the formal sector.

Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.

  • Agriculture, Forestry and Fishing (A)
  • Mining and Quarrying (B)
  • Manufacturing (C)
  • Electricity, Gas, Steam, and Air Conditioning Supply (D)
  • Water Supply; Sewerage, Waste Management and Remediation Activities (E)
  • Construction (F)
  • Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
  • Transportation and Storage (H)
  • Accommodation and Food service activities (I)
  • Information and Communication (J)
  • Financial and Insurance Activities (K)
  • Real Estate Activities (L)
  • Professional, Scientific and Technical Activities (M)
  • Administrative and Support Service Activities (N)
  • Education (P)
  • Human Health and Social Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2013 ASPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Classification of Establishments

An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.

Economic organizations (EO).  This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

  • Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
  • Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
  • Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
  • Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
  • Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.

Legal Organization (LO). (EO).  This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:

  • Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
  • Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
  • Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
  • Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
  • Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
  • Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
  • Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
  • Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.

Industrial classification The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size (SZ) of the Unit of Enumeration The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

The following are the size codes and corresponding total employment used in the 2013 ASPBI:

Geographic Classification.  Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of December 31, 2013 was used for the 2013 ASPBI.

Sampling Design

Selection of sample establishment for the 2013 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Estimation Procedure

Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)

The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is

where:

  •  i = 1, 2, 3,…,nphs establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region
  •  s = denotes the non-certainty employment strata in TE of 20 and over
  •  h = denotes for industry domain
  •  p = denotes for 17 regions
  •  xphsi = value of the ithestablishment in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
  •  Wphsi = weight of the ithestablishment in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.

  •  Nphs = total number of establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
  •  nphs = total number of sampled establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.

 

Certainty Stratum

TThe estimate of the total of a characteristic for the non-certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

where:

  •  i = 1, 2, 3,…,mphc establishments in cthnon-certainty stratum in TE of 20 and over in hth industry domain in the pth region
  •  c = denotes the certainty stratum in TE of 20 and over
  •  h = denotes for industry domain
  •  p = denotes for 17 regions
  •  xphcj = value of the jthestablishment in cthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
  •  mphc = total number of sampled establishment in cthcertainty stratum in TE of 20 and over in hth industry domain in the hth industry domain in the pth region.

Total Estimate for TE of 20 and Over

The estimate of the total of a characteristic for the industry domain in each region (Geopraphic domain) was obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where:

  •  h = denotes for industry domain
  •  s = 1, strata of TE 20-29, and 2, strata of TE 50-99, of the non-certainty employment strata in hth industry domain in the pth region.
  •  c = 1, 2,..., Kph certainty stratum in TE of 20 and over in hth industry domain in the pth region.
  •  kphcj = total number of certainty stratum in TE of 20 and over in hth industry domain in the pth region
  •  p= denotes for 17 regions.

At the national level estimate of the total of a characteristic for each industry domain was obtained by aggregating the estimates for  the particular industry domain from all the regions

Weight Adjusment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight is

where:

  •  W1phsi = is the adjusted weight for non-certainty stratum
  •  Nphs = total number of establishments in sth non-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
  •  n1phs= total number of responding establishments in sth non-certainty employment strata in TE of 20 and over in hth industry domain in the pth region..

 

Questionaire Design

The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

The sample establishments responded also to the survey through the use of Web-based version of the 2013 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

Total response rate as of March 30, 2015 for Wholesale and Retail Trade; Repair of motor Vehicles and Motorcycles establishments with total employment of 20 and over was 88.1 percent (3,802 out of 4,314 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 61 responded online.

 

CONCEPTS AND DEFINITIONS OF TERMS

 

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2013.

Paid employees are are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.

Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, Phil Health, Pag-ibig, etc.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.

Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Expenses refers to cost incured by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Gross Margin refer to the difference between the value of goods sold on own account (including commission received on sale on account of others) during the inquiry period and the gross cost of these goods. The gross cost of goods is the value of purchased of goods intended for sale adjusted for stock change of these goods during the inquiry period.

Valued added is gross output less intermediate input. Gross output for Wholesale and retail trade; repair of motor vehicles and motorcycles is the sum of the total income (less rent income from land, delivery charges separately invoiced to customers, interest income, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories of goods for resale; less cost of goods purchased for resale. Intermediate input is equal to the sum of the following expense/cost items: materials and supplies ; fuels, lubricants, oils and greases ; electricity; water; cost of repairs, maintenance and installation work; cost of non-industrial services done by others (less rent expense for land); research and development expense; environmental protection expense; royalty fee; franchise fee; management fee; inventory of materials and supplies, fuels, lubricants, oils and greases (beginning less ending) and other cost/ expense.

Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

 


 

 

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