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.
Purchase of earth moving equipment 2020-05-05 11:00 AHT23827
Appointment of a panel of electrical contractors (CIDB grade 3EP to 9 EP) to provide electrical construction services to the Alfred Duma Local Municipality for a period of one year 2020-04-16 11:00 EES 01/2020
Invitation for Service Providers to Provide Short Term Insurance for uMgungundlovu District Municipality 2020-04-23 12:00 09/2020
Supply and delivery of Refuse Skip Loader Truck for Makhado Local Municipality 2020-05-08 12:00 15 of 2020
Request for Proposals for the Placement on the Municipal Panel of Professional Civil, Structural, Mechanical and Electrical Engineering Consultants for a period of thirty-six (36) months 2020-04-24 12:00 UGU-07-1540-2020
Provision of Services: Taking of Water and Sewage Samples, Analysing, and Monitoring it in Botrivier, Caledon, Tesselaarsdal, Genadendal, Grabouw, Greyton, Riviersonderend and Villiersdorp for the Period From 01 July 2020 To 30 June 2023 2020-04-24 12:00 ENG 01/2020/21
Re-advert: Procurement of Service Provider for Enhancement of the APRM Electronic Questionnaire Tool for the African Peer Review Mechanism (APRM) 2020-04-28 11:00 APRM/001B/SIDA/EQT/2020
Supply and Installation of Artificial grass in various parks in Hermanus for a contract period ending 30 June 2020. 2020-04-03 12:00 SC2080/2020
Supply and Delivery of Sewing Equipment 2020-04-03 12:00 FWQ201/2019
Supply and Delivery of Cable 2020-04-03 12:00 FWQ204/2019
Supply and Delivery of Sewage Mixers 2020-05-08 12:00 FWQ207/2019
Supply and Delivery of a Soft Starter Water Pump Station Alwyndal 2020-05-08 12:00 FWQ208/2019
Installation of Perimeter Fence at Polokwane Traffic Station 2020-04-30 11:00 PUDP 758
Supply, Delivery and Installation of General Steelworks and Fittings 2020-04-30 12:00 TDR125/2019
Appointment of Contractors in the Built and Environment for construction Rivoni School for the blind for the Limpopo Department of Education 2020-04-30 11:00 LDE/IA/B18/2019/20
Supply and Delivery of Manhole Rings and Covers 2020-04-09 12:00 TDR120/2019
Supply and Delivery of Chemical Cleaning Product for use in the Wastewater Systems 2020-04-09 12:00 TDR121/2019
Supply and Delivery of a Cobra Safe MLP System with Various Components and Cobra Brass Fittings 2020-04-09 12:00 TDR123/2019
Appointment of panel of contractors for urban / rural stormwater maintenance 2020-05-04 12:00 13/2020
Supply and Delivery of Various Water Fittings 2020-04-09 12:00 TDR122/2019

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