31. 3. 87 Official Journal of the European Communities "No L 88/1 (Acts whose publication is obligatory) COMMISSION REGULATION (EEC) No 894/87 of 27 March 1987 laying down transitional provisions and detailed rules for the application, as regards measures for the modernization of the fishing fleet, of Council Regula- tion (EEC) No 4028/86 THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 4028/86 of 18 December 1986 on Community measures to improve and adapt structures in the fisheries and aquacul- ture sector ('), and in particular Articles 10 (2), 34 (4) and 52 thereof, Whereas the categories of vessel modernization invest- ment eligible for aid must be defined; whereas the Member States must apply certain uniform criteria when assessing project and investment eligibility ; Whereas the modernization of a fishing vessel can be achieved either by adapting structure or by improving its equipment ; Whereas the Community assistance should be an incen- tive ; whereas therefore, Community financial aid may not be granted towards investments on which work has already started ; Whereas certain types of expenditure do not contribute to a structural improvement of the fleet; Whereas the conditions must be laid down with regard to certain technical amendments to projects after the grant of Community financial aid; Whereas applications for Community financial aid for modernization operations must include the information the Commission requires for taking a decision on the application ; whereas this information must be presented in standard form ; Whereas transitional provisions must be laid down for 1987 applying to modernization projects covered by the provisions of Article 37 (2) of Regulation (EEC) No 4028/86 ; () OJ No L 376, 31. 12. 1986, p. 7. ‘ Whereas the measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on the Fishing Industry, HAS ADOPTED THIS REGULATION : TITLE 1 Eligible investments Article 1 The categories of investment listed in Annex I shall be eligible for Community financial aid when falling within the scope of measures to modernize the fishing fleet as defined in Title III of Regulation (EEC) No 4028/86. However, in the decisions specified in Article 35 of the said Regulation, the Commission may grant financial aid for modernization investments other than those referred to in Annex I that meet the requirements of Article 9 (3) of that Regulation. Article 2 1.  No Community aid shall be given for modernization projects falling into any of the categories listed in Annex I 2. The investments referred to in Annex III shall be ineligible for any Community financial assistance in the framework of a modernization measure. Article 3 1.  Eligible investments shall be expressed net of ‘reco- verable value added tax (VAT). 2.  No Community aid shall be given for projects where the eligible investment exceeds 50 % of the value of a new vessel of the same type.