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.
For the provision of cleaning and garden services at Pretoria, Modimolle, Mookgopoing, Bela Bela and Pienaarsrivier for a period of 3 months and cleaning and garden services at Koedoespoort and Hercules for a period of three months 2020-06-11 10:00 ERACAM5031-32909
Outside Plant Sampling Systems upgrade and refurbishment at Majuba Power Station 2020-08-03 10:00 MPGXC006151
Supply and delivery of 1L x 1000 hand sanitizers 2020-06-03 12:00 IHLM/84/05/2019-20/CS
Supply and delivery of 1000 CLOTH MASKS 2020-06-03 12:00 IHLM/86/05/2019-20/CS
Supply and delivery of 8000 Disposable Masks 2020-06-03 12:00 IHLM/85/05/2019-20/CS
Supply and delivery of 02 Sanitizing booths 2020-06-03 12:00 IHLM-81/05//2019-20/MM'S
Erratum: Acquisition of an alternative suitable office space for SITA Eastern Cape Port Mthatha through an operating lease for a period of 5 years 2020-07-03 11:00 RFB 2113/ 2019
Erratum: Provide a fully redundant Microsoft Azure ExpressRoute service between Western Cape Government’s Corporate VPN at SITA and Teraco (in Cape Town) for a period of sixty (60) months 2020-06-12 11:00 RFB 2086/ 2019
Erratum: Appointment of a short-term Insurance Broker for the Mining Qualifications Authority until 31 March 2022 2020-06-15 11:00 MQA/ 06/ 19- 20
Erratum: Terms of reference for the lease of office space for ETDP SETA Eastern Cape, Free State, Gauteng, Kwazulu-Natal, Limpopo, Mpumalanga, Northen Cape, North West and Western Cape provincial offices 2020-06-26 11:00 SCMU: 16 - 2019/ 20
Erratum: Maseru Bridge: Land port of entry: Appointment of a service provider for the Maintenance and Repairs of Building, Civil, Mechanical, Electrical infrastructure and installations for a period of 36 month 2020-06-15 11:00 H 19/ 029 AI
Erratum: Makopong, Mc Carthy’s rest and Middelputs Land ports of entry: appointment of a service provider for the maintenance and repairs of building, civil, mechanical, electrical infrastructure and installations for a period of 36 months 2020-06-15 11:00 H 19/ 034 AI
Erratum: Land Port of Entry: Golela and Onverwacht: Appointment of a Service provider/s for the maintenance and repairs of Building, Civil, Mechanical, Electrical Infrastructure and Installations for a period of 36 Months 2020-06-05 11:00 H19/ 036 AI
Erratum: Appointment of a service provider to supply and deliver groceries and fresh bakery items to the Council for Geoscience as and when required for a period of three (3) years 2020-06-19 11:00 CGS- 2019- 061S
Erratum: Appointment of a service provider to supply and deliver canteen cleaning chemicals, packaging items and disposable consumables to the Council for Geoscience as and when required for a period of three (3) years 2020-06-19 11:00 CGS- 2019- 060S
Erratum: Appointment of a service provider to supply and deliver fresh produce to the Council for Geoscience as and when required for a period of three (3) years 2020-06-19 11:00 CGS- 2019- 059S
Establishment of Frame Agreements for the Supply of Standard and Multi-purpose Sleeping Mats 2020-09-01 23:45 Bid No. 2020/ITB/003
Establishment of Frame Agreements for the Supply of Polyester Mosquito Nets (LLINs - WHOPES Prequalified) 2020-08-25 23:45 Bid No. 2020/ITB/002
Decontamination Of All Municipal Offices, Buildings And Municipal Vehicles (Covid – 19 Measures) 2020-06-05 12:00 MATAT/2019/2020-46
Debt Collection Services 2020-06-22 12:00 MATAT/ 2019/2020-45

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