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The drain is built into the filter housing. I know this with great certainty after performing my most recent oil change with the wrong sequence of steps. When you unscrew the cap the oil held in the housing is allowed to drain into the pan. When I did it wrong last week I drained the oil pan, then reinstalled the drain plug and moved to the top to change the filter. As soon as I started unscrewing the cap I could hear the oil draining from the filter down into the motor. I then had to go back under the car and remove the drain plug a second time to get rid of the oil from the filter area.

I like the paper filter for another reason - it lets me visually inspect the pleats of the filter to see if any metal particles or other debris has accumulated. That is much harder to do with the metal canister filters. You need an oil filter cutting tool to remove the metal can.
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