The National In-Country Value (ICV) Program was launched by the Ministry of Industry and Advanced Technology (MoIAT) to improve the performance and sustainability of the industrial sector in the UAE. The ICV program aims to increase the contribution of local industries through:
- Enabling more local spending and sourcing within the UAE economy
- Supporting the growth of local SMEs
- Recognizing local companies’ role in economic and social development
- Contributing to an increase in GDP
As part of this program, suppliers can apply for an ICV Certificate by completing an ICV Template and submitting it to an authorized Certification Body. The scores and ratings in the ICV Certificate UAE allow suppliers to demonstrate their in-country value to government entities and companies participating in the program.
Significance of the ICV Template
The ICV Template provided by MoIAT is a standardized format for suppliers to systematically calculate their ICV score based on prescribed formulas. Here are some key reasons why the ICV Template is significant:
- Standardized process: It provides a uniform methodology for all suppliers to quantify their ICV contributions consistently. This ensures fair comparisons.
- Comprehensive assessment: The template covers various ICV factors like local procurement, investment, employment, etc. giving a holistic picture of a supplier’s economic participation.
- Accuracy: Instructions clarify acceptable evidence and calculation methodology, preventing arbitrary interpretations. This leads to accurate ICV scoring.
- Validity: Only certificates generated from filling the template are considered valid by participating entities for qualification purposes.
- Future compliance: Understanding the template early helps suppliers track ICV metrics proactively for smooth annual certification.
- Tracking progress: Historical templates allow tracking a supplier’s ICV growth over time, informing strategy and policy decisions.
Instructions for Filling the ICV Template
To accurately report data and successfully obtain the ICV Certificate, proper understanding, and adherence to the following template instructions are essential for suppliers:
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Use the Latest Financial Statements
Suppliers must populate the ICV Template using figures from their most recent audited financial statements, which cannot be older than two years from the certification year. In the case of new companies less than 10 months old without audited statements, unaudited management accounts for up to 9 months can be used instead.
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Select the Correct Business Type
The template contains separate sections for goods manufacturers holding an industrial license and service providers with other licenses. Suppliers must choose which categories apply based on their license type and business activities.
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Provide Required Details
All relevant non-shaded cells in the template sections like manufacturing costs, procurement, investments, employment, etc. must be filled in as per reporting guidelines. Ensure company and contact information is accurately provided.
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Cite Acceptable Evidence
When claiming ICV percentages for locally procured items, suppliers must reference valid ICV certificates of the vendors or use deemed percentages specified for utilities. Fixed asset details must match schedules in the financial statements.
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Apply Relevant Considerations
Factors such as free zone entity classification, excluded costs like taxes, and related party exclusions are clearly defined and must be correctly applied during data capture. Exchange rates for foreign amounts should also be specified.
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Reach Out for Clarification
In case of any ambiguity in template guidelines, suppliers can contact MoIAT or the certifying body to clarify classification, assumptions, or methodology before submitting. All reported figures need to be validated from source documents.
Table 1: Summary of ICV Template Sections
| Section | Applicability | Key Details Requested |
|---|---|---|
| Company Information | All suppliers | Business details, license, contacts, financial period |
| ICV Summary | All suppliers | Auto-fill scorecard |
| General Questionnaire | All suppliers | Business activity overview |
| Manufacturing Cost | Goods manufacturers only | Cost breakdown by local/import, ICV percentages |
| Third-Party Spend | Service providers only | Procurement list, vendor names, costs, ICVs |
| Investment | All suppliers | Fixed asset schedule, net book values, locations |
| Emiratization | All suppliers | Emirati employee list, salaries, benefits, training costs |
| Expatriate Contribution | All suppliers | Expatriate staff list, salaries, training costs |
| Revenue | All suppliers | Revenue sources, percentages |
| ICV Bonus | All suppliers | Revenue from outside UAE, Emirati headcount, and investment growth |
| Advanced Technology and Sustainability Bonus | Goods Manufacturers only | Industrial Technology Transformation Index, ISO Environmental Standards Certification, and Green Industries Labelling |
| Sustainability Bonus | Service providers only | Implementation of sustainability policies and procedures and ISO Environmental Standards Certification |
Conclusion
In conclusion, following the detailed instructions of MoIAT’s standardized ICV Template is essential for suppliers to systematically calculate their score and demonstrate their economic participation in an accurate, fair, and transparent manner. This ensures the objectives of the national ICV program are upheld, benefiting both suppliers and participating stakeholders in the country. Adherence to the guidelines is important to obtain a valid ICV Certificate on the first application.
Read More: The Role of ICV Certification in Promoting Sustainable Business Practices
