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Shaving the surface of the block where the head gaskets go, to result in a "true", flatter surface.
Because stamped factory markings (assembly codes, VIN data) are stamped into this surface just forward of the leading edge of the passenger head, decking the block often results in the loss of the factory markings, making it nearly impossible to prove an engine is the original "numbers matching" block for a car.
Here's a typical decking setup with the block registered on the main bearing saddles so the deck surface is machined parallel to the crankshaft centerline; the rotary cutter is shown above the block.
It's also been described as paying good money to perform an unnecessary machining step during overhaul that reduces the value of the car by thousands of dollars. A perfect lose-lose situation