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The "import" button allows you to import database text directly into the software. Follow the on-screen instructions for exporting and importing text into the software.
A common mistake made when importing translated text is not using the correct character encoding (also called the charset). If you attempt to upload a translated file, and get a message stating something like "Imported 0 messages for your language," doublecheck the charset setting on the page site Setup > General Settings to make sure it matches the encoding for the language you're translating into.