The rules in an ACL may overlap. If packets match the rules with loose conditions, the later ACL rules are not processed. In this case, packets cannot match the rules with strict conditions. Therefore, the rules with strict conditions must be arranged in front lines and those with loose conditions must be arranged towards the end.
Access Control Lists (ACLs) are processed in sequential order, meaning that once a packet matches a rule, subsequent rules are ignored. To ensure that more specific (strict) conditions are applied, strict rules should be listed first, followed by loose rules. (Reference: HCIA-Datacom Training Material, ACL Configuration and Rule Order)
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