Explanation
The configuration shown in the exhibit is for a Layer 3 VPN that connects customer sites that use different AS numbers. A Layer 3 VPN is a type of VPN that uses MPLS labels to forward packets across a provider network and BGP to exchange routing information between PE routers and CE routers. A Layer 3 VPN allows customers to use different routing protocols and AS numbers at their sites, as long as they can peer with BGP at the PE-CE interface. In this example, CE-1 is using AS 65530 and CE-2 is using AS 65531, but they can still communicate through the VPN because they have BGP sessions with PE-1 and PE-2, respectively.