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In the video, David explains how Otter's free basic plan used to allow importing and transcribing long files, but the limits have changed. The current free basic plan offers free recording and zoom sync up to 600 minutes per month, with a 40-minute limit for each transcription. Importing is now only available for Otter premium and Team plans, with three trial imports for basic plan users. To transcribe more and longer files in Otter, users need to upgrade to Premium or Teams, or refer people to Otter for a one-month premium pass with unlimited imports up to 600 minutes per month.