The ICV program is an initiative by the Abu Dhabi National Oil Company (ADNOC) aimed at enhancing the UAE’s economy. In general, ADNOC’s ICV program aims to increase spending on locally sourced goods and services, ultimately enhancing the UAE’s economic contributions from local organizations. The success of ICV programs has been highly contributed to by the roles of the certifying bodies that have been involved in the ICV certification process. The article narrows down its focus to the certifying bodies and their contribution to the ICV program.
Role of Certifying Bodies in the ICV Program
The certifying bodies play very significant roles in the ICV program. They certify ICVs and confirm suppliers’ ICV performance. Below are brief explanations of the roles of the certifying bodies:
- ICV Assessment: Certifying bodies take the assessment of the ICV performance of suppliers. This will be done through the use of the ICV formula, where the elements used to define a supplier’s performance include local expenditure, Emiratisation, and technology advancement. ICV performance shall be confirmed by the certifying authority through checking invoices and the supplier’s financials, supported by other documents.
- ICV Certification: In this, all those suppliers that satisfy ICV criteria are given certification by certifying authorities. An ICV certificate is one declaring the extent to which a supplier has achieved In-Country Value. The certificates are issued after confirmation of ICV performance of the supplier by the certification organization. An ICV Certificate is very valuable documentation that shows the commitment of the supplier to the program and reflects the beneficial impact of their business on the economy of the United Arab Emirates.
- ICV Compliance: The financial statements of the supplier are often audited by auditors from time to time, ensuring that the supplier is adhering to the ICV conditions by checking the ICV performance of the supplier. Moreover, the certification body can revoke the ICV certificate of a provider in case it is found that the supplier is not adhering to the regulations.
- ICV Reporting: The certifying body will report the ICV performance of the supplier to ADNOC. It includes frequent reporting in the dimension of the number of ICV certifications. The reports help ADNOC to keep track of the ICV program’s progress and look for areas that might need improvement.
Requirements for Certifying Bodies
MoIAT authorization requirements to be met by certifying bodies in the UAE are as follows:
- To certify the supplier’s ICV assessment, “Certifying Bodies” will have to be a professional services firm endorsed by MoIAT. For the purpose of ICV, only a body certified in the United Arab Emirates is allowed to authenticate supplier documentation and issue ICV certificate UAE.
- MoIAT will also carry on doing an ongoing quality audit of the certification process. This is because the certification body shall work with auditors who are accredited and have full knowledge of the ICV protocols and IT infrastructure, which is approved for the assessment.
- All the information given by the Supplier during this Certification process is strictly for private and confidential use only by Certifying Bodies.
- The MoIAT grants authorization upon strict eligibility criteria to be fulfilled by the Certifying Bodies. As per the standardization and to ensure validity, reliability, and a level playing field of the ICV certification program among all Certifying Bodies, they would follow a certain criterion.
Benefits of Certifying Bodies in the ICV Program
The key points mentioned below take into account the importance of certifying bodies in the ICV program.
- Ensuring ICV Compliance: The certifying body is supposed to ensure that the organization meets the ICV requirement by MoIAT, and they monitor and audit the ICV Performance of the supplier. This eases the control of the ICV program as required and allows suppliers to be part of growing the economy of the United Arab Emirates.
- Promoting Transparency: The certifying bodies make the ICV program more transparent. They are under an obligation to provide ADNOC with regular reports concerning the performance of the supplier, together with the reports that would indicate the overall number of issued ICV certificates. This makes the ICV program more transparent and ensures supplier liability for its ICV performance.
- Enhancing Credibility: The existence of the certification bodies will further solidify the legitimacy of the ICV Program through guaranteeing the required impartiality to properly assess suppliers’ ICV performance. As a result, the program becomes more credible, attracting many more suppliers to work with the ICV program.
- Supporting Local Businesses: The certifying bodies strongly encourage local firms to increase the purchase of goods and services from local suppliers, which further promotes the spending mentality of “buy local.” They also encourage Emiratization, which further adds to the growth and development of local organizations.
FAQs
What role do the certifying bodies play in the ICV program?
The ICV program has a keen concern for the participation of certifying bodies towards the realization of its objectives. Certifying Bodies will issue ICV Certifications to suppliers after a check on the Supplier’s ICV Performance. They also provide continued feedback to ADNOC in view of the Supplier’s performance.
What benefits will a Certifying Body bring under the ICV program?
They would bring huge benefits under the ICV program and would include the guarantees of ICV performance by the suppliers, transparency, improvements in reputation, and help for local businesses from the UAE.
Can the same Certifying Body be used for recertification?
Yes, as per the MoIAT guideline, the process to recertify the Supplier can be done using the same Certifying Body and audited financial statements that would have already been issued, within the 14-month term of validity, without the need to start everything from scratch.
Conclusion
In conclusion, certifying bodies play a key role in the ICV program as they ensure ICV compliance, which in turn contributes to the economic development of the UAE. In order to ensure that the suppliers comply with the ICV requirements, they must seek the guidance of ICV consultants in the UAE to improve their ICV performance.
