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During the encoding of a DataMatrix code that is GS1 compatible, the appropriate approach to dealing with FNC1 and <gs> symbols is to follow the GS1 General Specification guidelines. The FNC1 symbol should be used to indicate the beginning or end of a GS1 application identifier (AI) in the encoded data. The <gs> symbol should be used as a separator between multiple AIs within the same data field. The exact placement and usage of these symbols will depend on the specific application being encoded, and may require consultation with the GS1 organization or a qualified GS1 solution provider.