🇦🇪UAE

عدم الامتثال لقرار مجلس الوزراء 121/2023 - فشل الشهادة

1 verified sources

Definition

Steel manufacturers failing Cabinet Decision 121/2023 compliance face production stoppages, market placement bans, and potential administrative penalties. The regulation mandates: (1) Declaration of performance, (2) Digital Product Passport, (3) ISO 9001 FPC system, (4) Notified Body verification, and (5) rolling mill mark affixing. Non-compliance = no Certificate of Conformity = no ECAS Mark = no market access. Manual verification delays and documentation gaps compound risk.

Key Findings

  • Financial Impact: Estimated: AED 50,000–200,000 per non-conformity finding (regulatory fine + production stoppage costs). Per-batch rework: AED 10,000–30,000. Typical compliance setup: 200–400 hours of labor (AED 40,000–80,000 at skilled technician rates). Annual re-assessment: AED 15,000–50,000 per Notified Body audit.
  • Frequency: Post-audit (annual or continuous surveillance cycles per regulation Section 10e)
  • Root Cause: Manual factory production control records, incomplete Environmental Product Declaration data, delays in Notified Body submission, missing or incorrect rolling mill marks on finished products

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Primary Metal Manufacturing.

Affected Stakeholders

Quality Assurance Manager, Manufacturing Operations, Compliance Officer, Production Planning

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

تأخير التحقق من الشهادة والتفتيش - وقت التحويل للنقد

Estimated: 20–50 business days delay × (Daily Revenue / 365) = 5–15% monthly cash flow delay. For AED 5M annual revenue plant: AED 70,000–210,000 quarterly cash drag. At 5% cost of financing: AED 3,500–10,500 per quarter.

توقف الإنتاج - انتظار شهادة المطابقة والتصديق

Estimated: 15–40 business days per batch × (Equipment Rental/Depreciation Value) = AED 30,000–150,000 per batch delay. For plant producing 4 batches/month: AED 120,000–600,000 monthly capacity loss. Annual: AED 1,440,000–7,200,000.

عدم الامتثال لنظام جواز السفر الرقمي للمنتجات الفولاذية

AED 50,000–150,000 per regulatory non-compliance incident (typical UAE manufacturing penalty range); estimated 20–30 hours/month for manual compliance documentation and Notified Body coordination

عدم الامتثال لآلية العكس الضريبي للمعادن الثمينة

AED 10,000–50,000 per month in manual VAT adjustment hours (estimated 15–25 hours/month at AED 150–200/hour); estimated 2–4% revenue leakage from unbilled VAT corrections

رفض المنتجات بسبب عدم استيفاء متطلبات شهادة الامتثال والعلامة البيئية

AED 100,000–300,000 annually per manufacturing facility from rework, refunds, and inventory write-downs (estimated 3–5% of monthly metal sales); AED 50,000–100,000 for EPD preparation and third-party certification (EN 15804 standard[1])

تأخير الدفع بسبب تأخر التحقق من الامتثال والمعايير البيئية

AED 30–60 additional Accounts Receivable days (typical 45–90 day payment cycle extended to 75–150 days); working capital cost estimated at AED 500,000–2,000,000 annually per manufacturing facility (at 5–7% cost of capital and AED 50M–100M annual revenue)

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