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Use of the {php} in Smarty templates is deprecated and should not be used, as going forward in future versions of Smarty they may no longer work. Starting in version 6.0.0 which uses Smarty 3.0, you will need to specifically turn on use of {php} in the admin at Design > Template Sets.
You can read more info about it on the smarty.net documentation page for {php}. Below are alternatives to using {php} in your templates specific for this software.