Issue Date: 
Monday, January 18, 2016

Imported content - 8 important things you need to know

What is Imported Content? If you are operating in the tender environment you will know that content is the term that is used for your products/services/goods that you intend in selling to the Government.

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* , 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 D1** 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 “High Level” tender workshop which explains in detail how to complete these documents as well as other difficult tender issues. To find out when our next “High Level” tender workshop is taking place email us at admin@how2tender.com.

* SATS = South African Technical Specification and SATS1286:2011 specifically deals with preferential procurement and the measurement and verification of Local Content)

** This is the imported content declaration (Annexure D) that must be completed during the tender process

Title Closing Date Tender No.
Repairs and Maintenance to Filtration Plant equipment at Bellville South Swimming Pool 2017-10-02 12:00 SG11800027
Supply: Spanners 2017-09-22 12:00 W041800259
Supply: Cutter head, cutter blade & hand file 2017-09-22 12:00 W041800262
Supply of Academic Attire for Graduation Ceremonies. 2017-10-03 12:00 EGO 2017/01: ACADEMIC ATTIRE
Supply: Line & rakes 2017-09-22 12:00 W041800261
Supply: Line & rakes 2017-09-22 12:00 W041800260
Supply: Out-Board Engine 90hp Four Stroke (all cables and fitment of engine to be included in Price 2017-09-28 12:00 wc11800277
A Practical Approach to HACCP Training – Public Course 2017-10-02 09:00 SM11800165
Audio Visual Services - Older Persons Event 2017-09-27 09:00 SM11800168
Supply: 30 each x ups network management card 2017-09-27 11:00 W061800181
Supply and delivery of apc smart ups 2017-09-27 11:00 W061800180
Supply and delivery of timer switch 2017-09-22 11:00 W061800179
Supply and delivery of telephones 2017-09-27 11:00 W061800178
Supply: Sliced bread, brown 2017-09-21 15:00 R081800234
Supply: Groceries 2017-09-21 15:00 R081800241
Supply: Supply: Groceries 2017-09-26 15:00 R081800236
Tender for the supply, installation and provision of ICT solutions at African Peer Review Mechanism in Midrand, South Africa 2017-10-13 14:30 02/APRM/07/2017
Supply: Port-a-vac suction unit charger 2017-09-22 15:00 R081800239
Supply: Medical supplies 2017-09-22 15:00 R081800238
Supply: Refreshments 2017-09-26 15:00 R081800237

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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