Issue Date: 
Thursday, October 31, 2019

Local and Imported content – Important things you need to know 

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

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?  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. Especially 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:
    1. Goods imported directly by the tenderer; and
    2. 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.

How to Tender present a “Local Content Specialist” workshop which teaches the bidder how to complete the Local Content Documents (SBD 6.2 and Annexures C, D & E) correctly.  You can book and pay online at  https://howtotender.co.za/local-content-specialist/.

To learn more about tenders, attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Request for Proposals (RFP) The provision of Managed Bandwidth Connectivity Link for University of Venda for the CSIR based in Pretoria 2020-02-07 16:30 3354/07/02/2020
Appointment of duly authorised service provider for training of 118 child and youth care workers in Dr Ruth Segomotsi Mompati District 2020-02-20 12:00 NW/DSD/13/2019
Provision of security services at Apel Regional Office, Moses Mabotha Civic Hall, Strydkraal Community Hall, Municipal House In Burgersfort, Burgerfort Flea Market, Burgersfort Landfill Site and Pelangwe Community Hall (Cluster 5) 2020-02-17 12:00 FTM/T11/19/20
Supply, delivery, registration and licencing of sedans for traffic department 2020-02-07 12:00 FTM/T10/19/20
Request for two (2) 60 Seater Buses for the University of Limpopo 2020-02-19 10:00 UL/2020/01/03
Request for Ultra High Performance Liquid Chromatography - Mass Specifications for the University of Limpopo 2020-02-19 10:00 UL/2020/01/01
HOPETOWN: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW02/ 20
NOUPOORT: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW05/ 20
BRITSTOWN: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW01/ 20
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of consulting services for the reseal between St Albans I/C and Linton Grange I/C on National Route 2 Section 11 km 7.19 to km 23.26. 2020-02-14 14:00 SANRAL N.002- 110- 2019/ 1F
DE AAR: MAGISTRATE OFFICE: Installation and replacement of air conditioners Bidders should have a: CIDB Grading: 1ME OR HIGHER OR 1 MEPE OR HIGHER 2020-01-31 11:00 CW04/ 20
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement on National Route N2 Sections 14 and 15 from Green River (km 60) to Buffalo River bridge (km 3.2). 2020-02-14 14:00 SANRAL N.002- 145- 2012/ 1
Department of Basic Education: Midlands Region: Estcourt: Emadolobheni Primary School: Water and sanitation: upgrades to sanitation systems contract period: nine (09) calendar months cidb grading: 4GB or higher (open tender) joint venture: 3x3GB 2020-02-18 11:00 ZNTL 03026 W
Invitation for contractors with C2DB holding 2GB to 7GB, 2CE to 7CE and 2EP to 7EP to register on the Department of Human Settlements Framework [NEC] for a period of three years. 2020-02-14 11:00 HSC 03/ 2019/ 2020
SANSA invites bidders to bid for Comprehensive Travel Management Services for SANSA for a period of three (3) years. 2020-02-18 11:00 SS/ 018/ 01/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the Consulting Engineering Services for the Reseal between Jeffreys Bay I/C and Gamtoos River on National Route 2 Section 10 km 39.2 to km 54.0. 2020-02-14 14:00 SANRAL N.002- 100- 2019/ 2F
Appointment of a service provider to maintain, enhance and hosting of website for Robben Island Museum (RIM) for a period of thirty-six (36) months 2020-02-14 11:00 RIM ICT 03- 2019/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement on National Route N2 Sections 14 and 15 from Green River (km 60) to Buffalo River bridge (km 3.2). 2020-02-14 14:00 SANRAL N.002- 145- 2012/ 1
The Road Accident Fund (RAF) requires rental of office space for the RAF Cape Town Branch for a period of nine (9) years and eleven (11) months. 2020-02-21 11:00 RAF/ 2019/ 00028
Appointment of a service provider to conduct Environmental impact assessment and Township establishment for Gauteng Industrial Development Zone (GIDZ) Springs SEZ 2020-02-10 11:00 GIDZ/ 07/ 2019- 20/ SPRINGSSEZ

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