IN-COUNTRY VALUE (ICV) CERTIFICATION

What is ICV Certification?

ICV Certification is issued to certified suppliers. The National In-Country Value (ICV) Program is a UAE government program initiated by ADNOC to support the Ministry of Industry and Advanced Technology’s mandate of improving the productivity and sustainability of the UAE’s industrial sector.

 

Purpose of ICV Certification:

To ensure validity and accuracy of the information provided by suppliers in terms of ICV Contribution.

 

Objectives of the program

  • Strategic localization of supply chains and the development of new local industries and services.
  • Stimulating and attracting foreign investments, diversifying the economy, and increasing exports.
  • Creating valuable job opportunities in the private sector.
  • Contributing to the growth of national GDP.
  • Enhance spending on R&D and advanced technology; and
  • Increase the private sector’s contribution to national GDP.

 

Is ICV certificate mandatory?

While it is not compulsory to hold an ICV certificate to participate in ADNOC Group tender, suppliers that have an ICV certificate will have advantage during the tendering process. (Suppliers without the certificate will be considered to have 0% ICV).

 

How is ICV calculated?

  • Contribution- 50% contribution for calculating ICV Score for services.
  • Formula – ∑ Value of good & services procured per vendor & subcontractor x ICV of the vendor & subcontractor + Emirati Cost + 0.6* Expat cost divided by Total Revenue

 

ICV Certification in UAE-YUGA Accounting.

How to obtain an ICV Certificate :

  1. Issue audited financial statements for the company/supplier, based on IFRS.
  2. Fill the certificate application form according to recent guidelines & financial statement.
  3. Select authorized certification company to issue the certificate & present its requirements.
  4. Use the certificate according to the guidelines of each applicable authority.

 

There are some guidelines to get ICV Certificate :

  • The first thing is that ICV Certification can only be handed out by  ICV certifying bodies in UAE.
  • When a supplier applies, they shall require a separate ICV Certificate for every business license that they owned. Every business license will be recognized as a  separate legal entity.
  • ICV Certification Templates must be completed by the applicant.
  • All the Figures in the template must be taken from a company’s latest IFRS compliant audited financial statements and it should not be older than 2 years.
  • Newly established companies (less than 10 months old) who do not have audited financial statements can take figures from their Management Accounts instead.
  • After the Certificate has been received, it will remain valid for 14 months from the date of issuance of audited financial statements. Companies can apply for certification again before this time period ends. They may use the same financial statements as well.
  • Once a company appoints an  Certifying Body to verification of Certification, it will not be able to switch to a new certifying body for the duration of their certification.
  • The submission shall take all costs and revenues of the company during its financial year.
  • If a company is not able to present consumption details (listed by invoice and vendor), purchases made by the company during that year can be taken into account instead.
  • The Certifying body and supplier will have to share any required information with the representative, whenever it is asked for review.
  • Negligence or tampering in a company’s submission will lead to penalties. These penalties can include a ban preventing them from doing business with ADNOC.

Once you are certified, you can begin submitting bids to participating entities. The bidding process will be determined by your ICV score.

 

Validity of the ICV Certificate

The ICV Certificate is valid for a period of 14 months from the date of issuance of the audited financial statements.

 

What is ICV certificate Abu Dhabi?

ICV certification is a requirement for all companies operating in Abu Dhabi that wish to apply for governmental and semi-governmental procurements. The ICV factor accounts for 40% of the financial evaluation.

 

What is ICV certificate Dubai?

Over 3,000 companies in the UAE are ICV certified. ICV certification includes, among others, goods manufactured, investment, Emiratisation, expatriate contribution, revenue from outside the UAE, and growth in investment.

 

FOR MORE INFORMATION, CONTACT US :

Phone : +971 52 1952 532 / +971 4 240 1110

Mail-Id : info@yugaaccounting.com

Website : www.yugaaccounting.com

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