Local Costs
There are costs associated with an export transaction that do not increase the export contract value but can be financed as they are important parts of the investment. They are called local costs. For example, in the case of machinery export, materials required for the installation or human resources are typically not provided by the exporting country as they are also available locally. Local costs include administration fees, such as fees of approval procedures. Eligible local costs shall in each case be specified in the export contract.