ICV templates instructions for ADLC program
ICV submission in Dubai, UAE should be prepared based on the templates and instructions provided by the Industrial Development Bureau in Abu Dhabi.
|Page 1 – ICV summary – Applicable for all suppliers|
Section A of this stage requires details information about the suppliers’ companies. This information includes the companies’ license numbers distributed to them by the Chamber of Commerce, name of the firms as they are stated in the license, registered addresses of their organizations, personal and official address (E-mail, phone number) of the suppliers’ representatives for maintaining contact etc. Suppliers also need to mention their legal entities that are stated in their licenses.
The Federal Ministry of Economy classified each of these suppliers as per their business types. Suppliers need to state whether their business falls under SME, non-SME or international categories.
Independent certified bodies will look for the information regarding whether the business organizations are inside or outside the UAE. In the case of Free Zone, suppliers who manufacture goods will state their location as “within the UAE” and who deliver service will fall under the category of “outside the UAE”.
The suppliers will mention the ending date of the financial year based on which ICV application is being submitted. ICV must be determined based on audited financial statements and businesses cannot use financial statements that are older than 2 years. The ICV certificate in Dubai, UAE will be effective only for the next 14 months after the date of the last audited financial statements.
In Section B, details regarding the ICV score in Dubai, UAE of a supplier is presented. Here the suppliers need not fill up their respective ICV value. Rather the figures will be filled automatically based on the values and information provided by the suppliers in the next sections.
This section is signed duly by the suppliers’ authorized executives and one of the Certified Bodies along with their respective stamp, designation and date. Proper authorization is important as this page will be regarded as the ICV certificate for the suppliers. Suppliers can submit this certificate for the bid of any government or private companies’ tender.
|Page IA – General questionnaire – Applicable for all suppliers|
A questionnaire will have to be filled by all of the suppliers based on the information of their reported financial period. The certified bodies will not use this questionnaire for ICV calculation or certificate providing purpose. Rather along with the ICV certificate in Abu Dhabi, UAE, this questionnaire will be submitted by the suppliers in different tender bidding events.
|Page 2 – Products manufactured – Applicable for good manufacturers|
First of all, the supplier company will describe produced goods for their reported periods. If they have multiple product lines and similar products, they can categorize those goods under a broad section.
Detail breakdown of suppliers’ total manufacturing cost during the year will be recorded here. At first, the costs will be separated based on whether they incurred within or outside the UAE. Then in each segment, the costs will further be split into internal and 3rd party costs. Internal costs are the depreciation and amortization related costs where the latter is the costs incurred for parties outside the organization.
Third parties can be a manufacturer or service provider. For third party manufacturers, the list of the manufacturers (only those having an industrial license), their legal address, total amount of purchase etc. will be mentioned. For the latter case, only service providers having company license, their official address, amount of purchase made from them, their ICV% etc. will be presented. Total purchase cost will be multiplied by the higher percentage between 50% and service providers’ ICV% to determine the recordable amount.
CSR related expenses, sponsorship fees, management fee and any types of fines will not be included under total cost here.
Location for manufacturers of Free Zone is considered “within the UAE” and for service providers “outside the UAE”.
|Page 3 – Costs on third parties – Applicable for service providers|
Suppliers at first will enlist description of the goods or services procured for the reported year by categorizing them, specifying vendors’ names, locations, ICV value against each good or service and the total cost incurred in the procurement by them. Their ICV will be supported by one Certified Body verified ICV certificates.
Vendors with no ICV certificate in Dubai, UAE will be allocated ICV score of zero. Vendors within the UAE mainland will be allocated 10% ICV score while calculating ICV of the supplier.
Operating costs including utility, IT and government-related expenses will be included in calculating procurement cost.
Instructions regarding non-inclusion of some cost items and locations for good manufacturers will also hold to be valid for service providers.
|Page 4 – Investment – Applicable for all suppliers|
All tangible assets including the development cost of the software will be recorded in their net book value by the suppliers along with mentioning whether the assets are inside or outside the UAE. In case of revaluation of any assets, the revalued amount according to last audited financial statements will be stated here.
Assets under this category include investment properties, PPE, software development cost, capital WIP etc.
|Page 5 – Emiratization – Applicable for all suppliers|
Number of Emiratis employed by the suppliers and total yearly amount of salaries including all types of benefits that are recorded in the “Wage Protection System” will be demonstrated here for ICV calculation. Donations made to universities listed here https://www.adek.gov.ae/en/Education-System/HigherEducation/List-of-Higher-Education-Institutions-in-Abu-Dhabi will be regarded as a component of Emiratization. Management fees, internal training costs, the bonus of Emirati owners etc. will not be considered here.
Suppliers under Free Zone will come up with documents duly authorized by Free Zone’s authority for supporting information regarding Emiratis employed by them and their gross annual benefits.
|Page 6 – Expat contribution – Applicable for all suppliers|
Suppliers will provide information regarding the number of Expatriates, their annual gross salaries recorded in the companies’ WPS etc. to determine ICV value in Dubai, UAE. For supporting documents, suppliers of Free Zone will show special approval and documentation from Free Zone authority while PJSC will come up with stamped payroll documentation from management.
|Page 7 – Revenue – Applicable for all suppliers|
Suppliers will record total annual revenue from their businesses under two segments- revenue from the UAE customers (including revenue from customers of Free Zone) and revenue from customers outside the UAE. For the latter revenue segment, two further classifications are a must- revenue earned from re-export without any value addition and revenue earned from export through adding value for the economy.
|Bonus (Maximum 5%) – Applicable for all suppliers|
Companies within the UAE will be eligible for this bonus only. Revenue that is directly collected from customers outside the UAE will be part for enjoying bonus.
Emiratis will be part of this bonus. Growth in the net book value of suppliers’ last two audited financial statements’ assets will be included for the bonus.