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.
Design, supply, erect, inspect and dismantle of scaffolding at Thornwood Embankment rehabilitation 2020-07-23 10:00 CRAC-DNR-33228
For the hire of a crewed 41.5 x 10m barge and a tug boat with a 10ton bollard pull capacity at seawall, berth 9 pier 1, Durban harbour 2020-07-21 10:00 CRAC DNR 32500
Printing services - AU diary and calendar 2021 - Framework Contract 2020-08-06 15:00 AUC/DIC/G/005
Supply and delivery of 18 x (xqty) hydroulic lifting trolleys for Forensic Pathology Services for 14 hospitals 2020-08-05 12:00 HEAL/208/20/MP Re-advertisement
Supply and delivery of 8 x dialysis machines with RO plant for Rob Ferreira and Witbank Hospital 2020-08-05 12:00 HEAL/209/20/MP Re-advertisement
Provision of Ambulance Services and Outsourcing ERT Services at Matla Power Station for a period of five (5) years. 2020-09-03 10:00 MPGXC006225
Occupational health and safety consultant for a period of three (3) years 2020-07-16 16:00 RFQ/002/2020
Invitation to tender for Farm Rietfontein Portion 47 395 JR 2020-07-28 10:00 IRP265
OHS Agent_Upgrade of Hornlee Sewer_T06 of 2019/2020 2020-07-14 12:00 12/2020/21
OHS Agent_Hornlee_Replacement & Rehabilitation of Existing Water Network_T21 of 2019/2020 2020-07-14 12:00 13/2020/21
Supply and delivery of hand sanitizer, gloves and masks 2020-07-14 12:00 14/2020/2021
Supply and Delivery of Laptops 2020-07-16 12:00 15/2020/21
Provision of loan finance 2020-08-05 12:00 T 01 OF 2020/21
Appointment of a suitable qualified and experienced service provider as auctioneer for a period of three (3) years to conduct the auctions of municipal owned fixed assets, moveable property and impounded vehicles on behalf of the municipality 2020-08-05 12:00 T 02 of 2020/21
Erratum: Extension of validity period for additional: 120 days for electrical database and mechanical database 2020-07-10 11:00 ZNB 5731/ 2019- H/ ZNB 5730/ 2019- H
Erratum: Provide a fully managed enterprise picture archiving and communications system for the Gauteng Department of Health (GDOH) with maintenance and support for a five (5) year period 2020-07-24 11:00 RFB 2186/ 2020
Erratum: Supply & install a hosted internet protocol telephone system & IP phones for the Dep of Higher Education & Training 2020-07-17 11:00 RFB 2158/ 2020
Erratum: Request for Proposals: Appointment of a panel of suitable service providers to supply and deliver office stationery to the NHBRC for a period of three (03) years. 2020-07-10 11:00 NHBRC 41/ 2019
Erratum: Supply maintenance of network cabling for saps for a period of three (03) years 2020-07-24 11:00 RFB 2126 - 2019
Request for Proposal: Establishment of a frame agreement for provision of translation and interpretation services for UNHCR offices in regional bureau of Southern Africa. 2020-08-07 16:00 RFP/020/HCR/RBSA/SUP/019

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