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.
Transport of bulk waste bins from George Waste Transport Station to PetroSA, for a three year period 2021-02-26 12:00 COM001 OF 2021
Supply and delivery of water & wastewater chemicals and portable equipment for a period of three (03) years 2021-02-22 12:00 13-2020/2021
Appointment of a panel of four (04) service providers for supply and delivery of transformers, mini substations, cables and accessories for stores 2021-02-22 12:00 26-2020/2021
Appointment of a panel of ten (10) service providers for supply and delivery of single, triple phase, Enermax meters, metering units and circuit breakers for stores. 2021-02-22 12:00 27-2020/2021
10mm2 PVC SWA PVC 4C Cable 2021-01-27 12:00 RFx 6000000341
Terms of reference for revision of the comprehensive gender toolkit by reference group 2021-02-11 11:00 APRM/017/SIDA/ GTK/2021
Terms of reference for APRM manual on gender best practices and lesson learned 2021-02-11 11:00 APRM/016/SIDA/ MGBP/2021
Terms of reference for the Comprehensive Gender Mainstreaming Guidelines 2021-02-11 11:00 APRM/015/SIDA/ GMG/2021
Procurement of services provider/firm for production and dessimination of popular version for the study on governance, gender and peacebuilding 2021-02-11 11:00 APRM/014/SIDA/ SGGP/2021
To repair the damage roof for the walkway and build the security hurt (1GB) GRANDING 2021-01-25 11:00 R/S/2021/1696
To replace the faulty electrical pump house and replacing the broken geysers to the state house and office (1 GB/CE Grading) 2021-01-25 11:00 R/S/2021/1911
The Provision of collecting, dismantling, repairing, overhauling, rewinding, assembling, painting, testing, supply of spares, delivering as well as replacing of existing electrical motors on as and when required basis at Komati Power Station 2021-02-18 10:00 MPGXC006322R1
Supply and delivery of batteries and battery chargers for a period of 36 months 2021-02-24 12:00 A040-2020/21
Provision of electrical waste management services for a period of 36 months 2021-02-24 12:00 A042-2020/21
Provision for the Appointment of an Energy Expert for a period of 6 Months 2021-01-29 13:00 EWSETA/RFQ/91/2020
Provision for the Appointment of a Quality Assurance Specialist Manager 2021-01-29 13:00 EWSETA/RFQ/90/2020
Covid-19 Testing 2021-01-25 11:00 REQ No.01770
Servicing of fire extinguishers in Nama Khoi Municipal Area 2021-01-29 10:00 Q/NC062/18/20202-2021
Rental of tlb and 10 cub tipper truck for 20 days at Waterval 2021-01-26 12:00 FPQ202101/009
Re-Advert: Appointment of a Labour Consultant to review and develop Employment Contracts for ERWAT. 2021-01-26 12:00 FPR202011/043R

Pages

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

Many people ask us: how do you decide between using a Joint Venture, a Consortium or Sub-contractor in responding to a... Read More

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