Issue Date: 
Monday, January 18, 2016

Imported content - 8 important things you need to know

South Africa needs to create new jobs. One way to do this is by ensuring that the manufacturing sector is constantly growing. To encourage economic growth and to stimulate job creation the Department of Trade and Industry (the DTI) has designated industries, sectors and sub-sectors for local production at a specified level of local content You can find out which these sectors are by visiting their website at www.dti.goz.za.
 
But what is Imported Content and why must we know what Local Content is? In order for you to understand this better here are eight important things you need to know about Imported Content:
1.    According to SATS 1286:2011 (SATS stands for South African Technical Specification and SATS1286:2011 specifically deals with preferential procurement and the measurement and verification of Local Content), the local                         content of a product is the tender price less the value of imported content, expressed as a     percentage.
2.    It is, therefore, necessary to first calculate the imported value of a product to determine the local content of a product.
3.    Identify the imported content, if any, by value for components or material or services (Goods).
4.    In the case of Goods sourced from a South African manufacturer, agent, supplier or subcontractor (i.e. third party), obtain that information and Declaration D (This is the imported content declaration (Annexure D) that must be                   completed during the tender process) from the third party.
5.    Very important to know as stated in clause 3.2.4 of SATS 1286:2011: "If information on the origin of the Goods is not available, it will be deemed to be imported content."
6.    Imported content of Goods are separated into two categories, namely:
       a.    Goods imported directly by the tenderer; and
       b.    Goods imported by a third party and supplied to the tenderer.
7.    When the tenderer supplies Goods that are imported by any third party (for example, a domestic manufacturer, agent, supplier or subcontractor in the supply     chain), the onus is on the tenderer to obtain verifiable evidence from             the third party.
8.    Exemptions, if any, are granted by the Department of Trade and Industry (the DTI). Evidence of the exemptions must be provided and included in Annexure D.
       Once you have determined the Important Content of your goods you can determine if you are within the Local Content limits set out in the Designated Sector list.
 
Remember that when you respond to a tender and your product has to comply with Local Content then you will have to complete Standard Bidding Document 6.2 as well as Annexures C, D and E. Failure to complete these Annexures (Declarations) will lead to disqualification of your tender.
 
If you have difficulties completing these documents you can attend our Local Content ½-Day tender workshop which explains in detail how to complete these documents. To find out when our next Local Content ½-Day tender workshop tender workshop is taking place email us at estelle@how2tender.com

Title Closing Date Tender No.
Phuthaditjhaba Magistrate Office: Rendering Of Cleaning Services For 24 Months. 2018-10-16 11:00 BL18/ 061
Rendering of travel agency services to the Department of Social Development (excluding MEC & HOD),for a period of 36 months. 2018-10-05 11:00 NC/ SOC/ 013/ 2018
Supply , Delivery and Off-loading of Perishable Provisions for Thohoyandou and Polokwane management areas ( Limpopo Province) 2018-11-06 11:00 LMN 06/ 2018 LIMPOPO
Appointment of service providers to implement The Animal and Veld Management Programme (AVMP) Soil Rehabilitation Projects in Spitskop and Zandmartinsdrift Land Reform Farms in the Edinburg area in Kopanong Local Municipality within Xhariep District Municipality as well as in De Hoop Land Reform Farm in the Bloemfontein area within Mangaung Metro Municipality in the Free State province. 2018-10-05 11:00 PSSC- RID- FS 0004 (2018/ 2019)
Supply, Delivery and Off-loading of Perishable Provisions at Klerksdorp, Rooigrond and Rustenburg Management Areas (North -West Province) 2018-11-06 11:00 LMN 04/ 2018 NORTH - WEST
Appointment of service providers to implement The Animal and Veld Management Programme (AVMP) Soil Rehabilitation Project in Rietfontein Land Reform Farm in the Soutpan area in Masilonyana Local Municipality within Lejweleputswa District Municipality in the Free State province. 2018-10-05 11:00 PSSC- RID- FS 0003 (2018/ 2019)
Supply , Delivery and Off-loading of Perishable Provisions at Barberton ,Bethal and Witbank management areas( Mpumalanga Province) 2018-11-06 11:00 LMN 05/ 2018 MPUMALANGA
Appointment of a service provider to render security guarding services at the Department of Public Service and Administration for a period of two (2) years. 2018-10-12 11:00 DPSA002/ 2018
Provision of Geographical Information Solution (GIS) including maintenance and support services. 2018-10-24 11:00 RFP 29/ 2018
6000 units of emollient bp cream with chlorocresol 500g, or equivalent 2018-10-08 11:00 ZnqLS443/ 18gaz
Butterworth Magistrate: Repairs & Servicing of Air-Conditioners. 2018-10-11 11:00 MTH 59/ 2018
36 units of Dextran 40, 10% in sodium chloride injection iv solution, 0.9% 500ml (Rheomacrodex), or equivalent 2018-10-08 11:00 ZnqLS442/ 18gaz
Drain cleaning and verge maintenance on Road P242, from 0.00KM TO 9.9KM. 2018-09-27 11:00 ZNT373T/ 2/ 4/ CDUR/ 601/ S/ 10/ 2018- 19
Drain cleaning and verge maintenance on main road P100 section 1&2 between chainage 0.00KM to chainage 14.5KM. 2018-09-27 11:00 ZNT373T/ 2/ 4/ CDUR/ 601/ S/ 05/ 2018- 19
Supply and Delivery of Dairy products and Maize Drink to the Gauteng Provincial Government (GPG) Departments and State Information Technology Agency (SITA) for a period of 36 months 2018-10-12 11:00 GT/ GPT/ 126/ 2018
Betterment and graveling on road D755 from KM 1.80 TO KM 2.80. 2018-09-27 11:00 CDUR/ 620/ S/ 03/ 2018
Supply and Delivery of Self-Adhesive Pharmaceutical Labels to all Hospitals/Institutions under the control of the Department of Health, Western Cape Government for a period of three (3) years 2018-10-19 11:00 WCGHSC0168/ 2018
Installation of Speed humps and Rumble strips on P129. 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 13
Request for Proposals to assist the ARC with the travel, accommodation and conference services for all the ARC offices nationally 2018-10-22 11:00 ARC/ 11/ 09/ 18
Installation of Speed humps and Rumble strips on P1-8. 2018-10-23 11:00 ZNT373T/ C237/ 12000/ S/ 12

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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