1.The following costs relating to the implementation of the project shall not be considered eligible:
(a)debts and debt service charges (interest);
(b)provisions for losses or liabilities;
(c)costs declared by the beneficiary and already financed by the Union budget;
(d)purchases of land or buildings for an amount exceeding 10 % of the eligible expenditure of the project concerned;
(e)exchange-rate losses;
(f)duties, taxes and charges, including VAT, except where non-recoverable under the relevant national tax legislation, unless otherwise provided in appropriate provisions negotiated with CBC partner countries;
(g)loans to third parties;
(h)fines, financial penalties and expenses of litigation;
(i)contributions in kind as defined in Article 14(1).
2.Pursuant to Article 4 a programme may declare other categories of costs as ineligible.