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.
Appointment of additional legal advisors to the panel of legal advisors to MEGA for a period of three (03) years 2021-03-11 12:00 MEGA/2020/07
Fasset is seeking to appoint a suitably qualified and experienced service provider for the provision of Legal Services Panel 2021-03-19 11:00 FAS/MD/LEGAL/LEGALSERVICEPANEL/CON3077/20
Supply And Delivery Of Dropper Clip Contact 161mm2 And Nylon Catenary (Tiger Wire) Dropper Clips 161mm2 At Germiston Depot – Once Off. 2021-03-11 10:00 RFQ CRAC-VEG 351440.
RFP - Appointment of professional environmental specialists for the inner city public transport ranks for a period of 36 months. 2021-03-31 12:00 JDA/DI/INNER CITY RANKS/CN009/2021
Request for Quotation: For the provision of internet and session initiation protocol (SIP) trunk services for UNHCR in Windhoek, Namibia 2021-03-04 16:00 RSA-2021-005
Graphic design services for a period of three (3) years (re-issue) 2021-03-17 15:00 051/020
Appointment of a marketing cordinator or consultant 2021-03-22 12:00 CFO/SCM/COMMUNICATION/R20-21/16
Provision for the implementation and maintaining of Public Transport Infrastructure for a period ending 30 June 2023 2021-03-29 12:00 BSM 66/21
Supply, Delivery, Installation and Repair of Steel Park Equipment and Steel Street Furniture For Stellenbosch Municipality Until 30June 2023 2021-03-29 12:00 BSM 46/20
Appointment Of Municipal Panel Of Attorneys 2021-03-24 12:00 2020/2021-147
Batho Pele Charts 2021-03-25 12:00 2020-2021-130
Supply & delivery of a vehicle 2021-03-23 12:00 NMSE/2021/01
Request for proposal - a panel of service providers for provision of revenue investigations and collection for government debt 2021-03-31 10:00 SCM011/FIN/2020/2021
Appointment Of Municipal Panel Of Attorneys/ Five Firm Of Attorneys 2021-03-24 12:00 MATAT/ 2020/2021-65
South African Social Security Agency invites potential service providers to offer Oracle Hardware Maintenance and support for a period of 36 Months 2021-03-15 11:00 SASSA: 73-20-ICT-HO
Internal Auditors 2021-03-30 13:00 OBP03/21/FIN1
Provision of Security Services for a Period of Three Years for The Matatiele Local Municipality (Mlm) (Commencing From The Period Of Appoinment) 2021-03-25 12:00 MATAT/ 2020/2021-66
Panel of service providers for Supply and delivery of stationery and cartridges/toner for the period three (03) years 2021-03-15 12:00 26 of 2021
Invitation to service providers to supply, install, configure and commission HP BL460C Gen10 servers or equivalent. 2021-04-07 11:00 CIPC Bid Number: 16/2020/2021
Panel of service providers to provide a service of grass cutting , litter picking in Makhado municipality parks, empty stand and open spaces as and when required basis for the period of three (03) years. 2021-03-15 12:00 22 of 2021

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