🇦🇪UAE

عدم الامتثال لقرار مجلس الوزراء 121/2023 - تقارير الاختبار الرقمية (Non-Compliance with Cabinet Decision 121/2023 – Digital Test Reports)

1 verified sources

Definition

Cabinet Decision 121/2023 requires manufacturers to implement factory production control (FPC) systems, issue Digital Product Passports with static and dynamic QR codes, and submit declarations of performance. The Notified Body assessment includes verification of product performance documentation. Failure to comply by the 27 November 2024 deadline prevents manufacturers from placing steel products on the market. Manual or slow report generation creates bottlenecks in the certification approval workflow, risking missed deadlines and license revocation.

Key Findings

  • Financial Impact: Estimated: AED 50,000–250,000 in potential fines and suspension penalties per non-compliance finding; Plus loss of market access (estimated 10–30% revenue impact during suspension); Manual report generation: 15–25 hours/month per facility at AED 200/hour = AED 3,000–5,000/month operational overhead
  • Frequency: Continuous (annual renewal and surveillance required); Critical at initial compliance deadline (27 Nov 2024 – PASSED; ongoing for new products and batch releases)
  • Root Cause: Manual mill test report generation and traceability; delays in Digital Product Passport issuance; lack of automated QR code management; insufficient integration with MoIAT eServices portal

Why This Matters

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

Affected Stakeholders

Manufacturing Operations Manager, Quality Assurance Officer, Regulatory Compliance Manager, Product Certification Specialist

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Financial Impact

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Methodology & Sources

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

Evidence Sources:

Related Business Risks

تكاليف الامتثال لأنظمة التحكم في الإنتاج والشهادات (ISO 9001 & Factory Production Control Compliance Costs)

Estimated: AED 30,000–80,000/year in ISO 9001 surveillance audit fees; AED 15,000–50,000/year for EPD certification (independent auditor fees); Manual report reconciliation: 20–30 hours/month = AED 4,000–6,000/month overhead; Average audit re-visit cost: AED 8,000–15,000 per finding

فقدان المبيعات والأخطاء في الفواتير بسبب تأخر إنشاء التقارير (Sales Loss & Invoicing Errors from Report Generation Delays)

Estimated: 5–15% monthly revenue loss during report generation delays; Typical invoice value per batch: AED 100,000–500,000; Lost orders per month: 2–4 at AED 50,000–150,000 per order = AED 100,000–600,000/month; Manual report generation: 10–15 hours/batch at AED 200/hour = AED 2,000–3,000 per batch

تأخر التحقق من المنتجات وتأخر الدفع (Product Verification Delays & Cash Collection Lag)

Estimated: 5–10 day payment delay (vs. 1–2 day target) = 4–9 days excess AR hold; At AED 10M monthly revenue: 9 days delay = AED 3M excess working capital tied up; Financing cost at 6% annual: AED 180K–300K/year; Manual verification overhead: 8–12 hours/batch at AED 200/hour = AED 1,600–2,400 per batch × 25 batches/month = AED 40,000–60,000/month

اختناقات الإنتاج وتأخر إصدار شهادات المطابقة (Production Bottlenecks & Certification Delays)

Estimated: 2–4 hour delay per batch × 25 batches/month = 50–100 lost production hours/month; At AED 500/hour mill utilization cost (depreciation + energy): AED 25,000–50,000/month in idle capacity; Throughput loss: 10–20% = AED 500K–2M/month in lost saleable output; Overtime cost to recover: AED 50–100/hour × 100 hours = AED 5,000–10,000/month

ثغرات التتبع والشهادات المزيفة (Traceability Gaps & Fraudulent Certificates)

Estimated: License revocation fine/penalty: AED 50,000–250,000; Reputational damage and lost sales: 5–30% of annual revenue (AED 5M–50M for mid-large producers); Recall/rework cost if fraudulent batches discovered: AED 1M–10M; Insurance claims and liability: AED 500K–5M

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

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