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In this YouTube video tutorial, Rashid explains the zip code validation API. He discusses searching for zip code validation APIs, many of which are premium and costly. After much effort, Rashid finds a free API that works well and provides similar results to premium APIs. The free API validates zip codes and provides information on the state, country, and city. It is open source, supports multiple countries, and is easy to integrate. The API returns results such as postal code, country, state abbreviation, and longitude.