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.
Supply and deliver 75mm X 45mm Number Decals starting from 0-8 2018-03-05 11:00 GQ02181698
Supply and deliver Oval Decals with a length of approximately 285mm and width of 202mm 2018-03-05 11:00 GQ02181698
African Union research grants: 2018 - open call for proposals 2018-05-22 17:00 HRST/ST/AURG-II/CALL2/2018
Supply and install Inlet and Outlet Pressure Gauges for Inductively coupled Plasma 2018-03-05 11:00 CSQ02181226
Supply and install High Purity Nitrogen Regulator for Inductively coupled Plasma 2018-03-05 11:00 CSQ02181226
Supply fluke tpak toolpak 2018-02-27 12:00 GD11800773
Supply Endress+Hauser Ultrasonic FMU90R22CA161AA1A Flow Meter,and Prosonic Level Sensor FDU91 2018-03-02 12:00 GD11800775
Supply vegawell 52 pressure transmitter 2018-02-27 12:00 GD11800776
Torula yeast,Nature’s choice 500g x 5bottles 2018-03-02 11:00 RFQ 000225
Supply of Precise Leveling equipment 2018-03-02 12:00 GD11800778
Re-Advert - Appointment of a service provider for the supply and implementation of an in-house finance system 2018-03-02 11:00 009- 2017/ 2018
Supply: Battery operated grinder 2018-03-02 12:00 GD11800779
Request for proposals to assist the ARC with the Annual Organizational and 360 degree assessments (Re-advertisement) 2018-03-23 11:00 ARC/ 13/ 09/ 17
Supply and Deliver SS Bracket as per Drawing attached, 3 Core 1mm instrumentation Screen Cable and E+H FDU 92 2018-03-02 12:00 GD11800780
Supply and deliver Cuvettes for Diaspect HB meter 2018-03-09 11:00 H392/ 17/ 18
Supply and deliver Screening OAE with DPOAE 2018-03-09 11:00 H346/ 17/ 18
Supply Comb binder & laminator a4&a3 machine 2018-02-26 11:00 GM11800633
Supply and delivery of firearm spare parts for Heckler and Koch Submachine Guns: to the South African Police Service nationally for a period of two (02) years 2018-03-23 11:00 19/ 1/ 9/ 1/ 46TT (17)
Gauze Swabs Sterile 100x100x8ply -100 Pieces Per Pkt ,40 Pkts Per Case X 100 Cases 2018-03-05 11:00 ZNQ 573/ 17/ 18
Supply, Delivery, Installation, Commissioning and Maintenance of Imaging Radiology Equipment at Various Gauteng Health Institutions for period three (3) years 2018-03-16 11:00 GT/ GDH/ 049/ 2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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