The National In-Country Value (ICV) program in the UAE is an initiative by the Ministry of Industry and Advanced Technology to improve the performance and sustainability of the industrial sector by increasing the contribution of local industries. The ICV certificate is issued to suppliers to evaluate their contribution to the local economy, and certified suppliers are given an advantage during the award of contracts and purchases based on their ICV score. However, the process of obtaining an ICV certificate can be complex, and suppliers may face legal challenges that can impact their certification. This article will discuss the legal challenges in obtaining an ICV certificate UAE and guide how to navigate them.
Legal Challenges in ICV Certification
The ICV certification process involves several legal requirements that suppliers must comply with to obtain their certificate. Some of the legal challenges that suppliers may face include:
- Compliance with the UAE’s legal framework: The ICV certification process is governed by the UAE’s legal framework, which includes federal laws, regulations, and guidelines. Suppliers must ensure that they comply with all relevant legal requirements, including those related to company registration, licensing, and taxation. For example, suppliers must register their companies with the relevant authorities and obtain the necessary licenses to operate in the UAE.
- Meeting the eligibility criteria: To be eligible for ICV certificate UAE, suppliers must meet certain eligibility criteria, including being a legal entity registered in the UAE, having a valid trade license, and having audited financial statements that are not older than two years. Suppliers must ensure that they meet all eligibility criteria before applying for ICV certificate UAE.
- Accurate financial reporting: The ICV certification process involves the calculation of the supplier’s ICV score based on their financial statements. Suppliers must ensure that their financial statements accurately reflect their operations and are prepared in accordance with the International Financial Reporting Standards (IFRS). Any discrepancies in the financial statements can result in the rejection of the ICV certificate.
- Compliance with the ICV formula: The ICV formula is used to calculate the supplier’s ICV score based on various factors, including goods manufacturing costs, investment in the UAE, Emiratization, expatriate contribution, and bonus. Suppliers must ensure that they comply with the ICV formula and provide accurate information in the ICV certificate template. Non-compliance with the ICV formula can result in the rejection of the ICV certificate.
Navigating Legal Challenges in ICV Certification
Navigating the legal challenges in ICV certification can be a complex and time-consuming process for suppliers. To ensure compliance with the legal requirements and maximize their ICV score, suppliers may consider engaging an ICV certificate consultant in the UAE.
An ICV certificate consultant is a professional who specializes in the ICV certification process and is familiar with the legal requirements and challenges that suppliers may face. The consultant can provide guidance and support throughout the certification process, helping suppliers to:
- Understand the legal requirements: An ICV certificate consultant can help suppliers understand the legal requirements for ICV certification, including company registration, licensing, and financial reporting requirements.
- Prepare accurate financial statements: An ICV certificate consultant can help suppliers prepare accurate financial statements that comply with the IFRS. The consultant can review the financial statements and identify any discrepancies or errors that may impact the ICV score.
- Ensure compliance with the ICV formula: An ICV certificate consultant can help suppliers ensure that they comply with the ICV formula and provide accurate information in the ICV certificate template. The consultant can review the template and identify any areas where the supplier may need to provide additional information or clarification.
- Maximize the ICV score: An ICV certificate consultant can help suppliers identify opportunities to maximize their ICV score. The consultant can review the supplier’s operations and identify areas where they can increase their local content or investment in the UAE.
- Ensure timely certification: An ICV certificate consultant can help suppliers ensure that they complete the certification process in a timely manner. The consultant can help suppliers prepare their documentation and submit their application to the Ministry of Industry and Advanced Technology.
When engaging an ICV certificate consultant, it is essential to choose a reputable and experienced professional. Suppliers should look for a consultant who has a proven track record of success in ICV certificate UAE and is familiar with the legal requirements and challenges in the UAE. Suppliers may also want to consider engaging a consultant who has experience in their specific industry or sector.
Conclusion
In conclusion, engaging an ICV certificate consultant in the UAE can help suppliers navigate the legal challenges in ICV certification and maximize their ICV score. By providing guidance and support throughout the certification process, an ICV certificate consultant can help suppliers ensure compliance with the legal requirements of ICV certificate UAE and increase their competitiveness in the UAE market.
Read More: Why is ICV Certification Critical for Your UAE Business?
