In the ever-evolving realm of the National In-Country Value Program (ICV), the Ministry of Industry and Advanced Technology (MoIAT) has unveiled updated guidelines, weaving simplicity and clarity into the fabric of this strategic initiative. The revised guidelines, introduced in 2023, bring forth a seamless understanding of the ICV framework, fostering a more accessible approach for participants. Let's take a closer look at the important new changes in the updated guidelines, painting a picture of the evolution from the previous framework:
- Introduction to the National In-Country Value Program (ICV) - Streamlined Introduction
The National In-Country Value Program (ICV) is a strategic initiative that plays a pivotal role in fostering economic growth and sustainability within a country. Updated guidelines, implemented in October 2023, have streamlined the introduction of the ICV program, enhancing its effectiveness and adaptability.
- A User-Friendly Journey through the ICV Platform
Navigating the official ICV Platform is simplified, ensuring a user-friendly experience for suppliers.
- In-Country Value (ICV) Program: Updated Entities, Guidelines, and Evaluation Process
- Participating Entities include governmental bodies and actively engaged companies within the In-Country Value (ICV) program.
- Suppliers, characterized as legal entities securing the ICV Certificate, are subject to assessment by Certifying Bodies—professional firms authorized by MoIAT for validation.
- Significantly, recent guidelines bring forth a modification in Audited Financial Statements, mandating compliance with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA).
- Additionally, the ICV Certificate, acquired through the official ICV Platform, conveys the Supplier's ICV score.
- Revised ICV Platform Registration Process:
As per the updated 2023 guidelines, the ICV Platform Registration Process is as follows:
- Access the official ICV Platform by visiting https://icv.moiat.gov.ae/.
- Utilize UAE Pass credentials to log in.
- If the company does not possess a pre-existing profile, commence the registration procedure by selecting the "Register Company" button.
- Follow the provided prompts to finalize the company registration process.
- Newly introduced NAFIS registration requirement
The previous guidelines did not include the NAFIS registration link, but the updated October 2023 guidelines now highlight it. Suppliers are now required to undergo registration on the NAFIS platform as 'Partners' via https://nafis.gov.ae/. This registration is compulsory for all private companies before they can acquire the ICV (In-Country Value) Certificate.
- Formula Enhancements for Goods Manufacturers:
Goods Manufacturers face a refined evaluation in the updated guidelines. Beyond traditional criteria like Manufacturing Cost and Investment, the inclusion of an Advanced Technology and Sustainability Bonus underscores a commitment to innovation and eco-conscious practices.
- Enhancements in ICV Formula for Service Providers
In the ICV (In-Country Value) formula for service providers, the new guidelines introduced in 2023 include a Sustainability Bonus, whereas the previous guidelines only considered Third Party Spend Cost, Investment in UAE, Emiratization, Expatriate Contribution, and the Bonus criteria comprising Revenue from outside UAE, Emirati Headcounts, and Investment Growth.
- ICV Calculation Criteria for Third-Party Service Providers
Third-party service providers face meticulous evaluation, including the introduction of a Farmer Score. The refined exclusions from total costs showcase a nuanced approach, recognizing and incentivizing diverse contributions.
- Exclusions from Total Costs:
Certain expenses are excluded from the total costs for ICV calculation.
- Management fees (amounts paid to the board of directors’ members)
- Sponsorship fees (amounts paid to the sponsor of the company in the UAE)
- Governmental fines/penalties/taxes
- Charity amount/expenses for Corporate Social Responsibility
In the new guidelines, the following additions to exclusions are made:
- Loss on disposal of assets/Foreign exchange
- Depreciation on excluded assets
These refinements aim to provide a more comprehensive and updated approach to ICV calculations for Third-Party Service Providers.
- Considerations for Donations in ICV Calculation (AED)
In the context of In-Country Value (ICV) calculation, the guidelines now specify that only donations made to Sondoq Al Watan or the following Government Universities/Education Institutes are considered:
- UAE University
- Higher Colleges of Technology
- Zayed University
- Khalifa University
- Petroleum Institute
- New York University AD
As per the new guidelines, these are the exclusive entities for which donations are taken into account in the ICV calculation, reflecting a refined and specified approach compared to the previous guidelines.
- Introduction of Advanced Technology and Sustainability Bonus for Goods Manufacturers in Updated Guidelines
In the updated guidelines, a new template for the Advanced Technology and Sustainability Bonus has been introduced specifically for Goods Manufacturers. This addition signifies an enhanced focus on encouraging and recognizing advancements in technology and sustainability practices within the manufacturing sector.
- Integration of Sustainability Criteria for Service Providers: A New Dimension in Updated Guidelines
In the latest guidelines, a noteworthy addition for service providers is the incorporation of Sustainability as a factor. This new inclusion underscores the importance of sustainable practices within the service sector.
The 2023 guidelines of the National In-Country Value Program (ICV) showcase a progressive shift towards simplicity, clarity, and sustainability. From streamlined introductions to user-friendly platforms, the updates aim to enhance accessibility for participants. Notable changes include a refined evaluation process for goods manufacturers, the introduction of sustainability bonuses, and the incorporation of advanced technology criteria. The inclusion of NAFIS registration and specified considerations for donations further tailoring the ICV program, creating a more nuanced and comprehensive approach. As we explore these updates, it becomes evident that the ICV initiative is not just evolving—it's embracing a future marked by innovation, eco-conscious practices, and a commitment to holistic economic development.