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.
Supply and Delivery of Sanitizing Tunnel 3 2020-06-01 12:00 2019-2020-148
Erratum: Land Port of Entry Monantsa Pass and Peka Bridge: Appointment of a service provider for the maintenance and repairs of building, civil, mechanical, electrical infrastructure and installations for a period of 36 months 2020-06-10 11:00 H19/ 035 AI
Provision of Cleaning Services for a period 3 years (36 months) as per the terms of reference for Driving Licence Card Account at 459B Tsitsa street, Erasmuskloof Pretoria 0048 2020-06-12 11:00 DLCA/ 2020/ 03
Erratum: Appointment of a Service Provider to Render Guarding Security Services to the Department of Transport for a period of 24 months (two (2) years). 2020-06-12 11:00 DOT/ 16/ 2019/ COO
Provision of operation and management of the Stellenbosch Landfill for period from 1 July 2020 ending 30 June 2021 2020-06-08 12:00 BSM 91/20
East London Sewer Diversion: Central WWTW to Reeston WWTW: Phase 2: Construction of a Sewer Tunnel and Civil Works 2020-08-21 12:00 BCMM/DES/PIU/1260/2012
Erratum: Department of Justice and Constitutional Development: Northern Cape: Site Clearance for the placement of mobile units in Britstown, Carnavon, Ritchie, Kuruman, Kuduman and Williston and Construction of a new building in Strydenburg. 2020-06-08 11:00 H19/ 030 AI
Erratum: Acquisition of an alternative suitable office space for SITA Eastern Cape Port Elizabeth through an operating lease for a period of 5 years 2020-07-03 11:00 RFB 2082/ 2019
Erratum: Lebombo Port of Entry: 36 Months Repair, Maintenance and Servicing of Buildings, Civil, Mechanical and Electrical Infrastructure and Installations. 2020-06-12 11:00 H19/ 032 AI
Erratum: Alexander Bay, Vioolsdrift & Onseepkaans: Land Port of Entry: Appointment of service provider/s for the Maintenance and Repairs of Building, Civil, Mechanical, Electrical Infrastructure and Installation for a period of 36 Months. 2020-06-12 11:00 H19/ 031 AI
Erratum: Request to source a service provider to deliver Hygiene services to SITA Nelspruit and Middelburg building for a period of three years 2020-06-12 11:00 RFB 2102/ 2019
Erratum: Appointment of a panel of laboratory and clinical suppliers 2020-06-19 11:00 SAMRC/ SCMAPL& CS/ 2019/ 19
Erratum: Request for Supply; Installation and configuration of Cabling, Hardware Infrastructure and a Wireless Solution for Limpopo Department of Social Development (Vhembe District) 2020-06-12 11:00 RFB 2098/ 2019
Provide Firewall Maintenance and Support to Gauteng Provincial Government for a period of 36 months 2020-06-12 11:00 RFB 2144/ 2020
Procurement of uninterruptable Power Supply (UPS) and the server room environmental maintenance and support to Department of Rural Development and Land Reform for a period of 36 months 2020-06-12 11:00 RFB 2146/ 2020
Appointment of an experienced Graphic Design and production company to design and produce SASSETA’s corporate publications from date of appointment until 31st March 2023 2020-06-15 11:00 RFP/ SASSETA/ 201920132/ 1
Appointment of an experienced Photography and Videography Service Provider from date of appointment until 31st March 2023 2020-06-15 11:00 RFP/ SASSETA/ 201920131/ 1
Appointment of a panel of Trainers to train researchers and M&E experts for the period ending 31st March 2023 2020-06-15 11:00 RFP/ SASSETA/ 201920112/ 1/ 3
Appointment of a panel of researchers for the period ending 31st March 2023 2020-06-15 11:00 RFP/ SASSETA/ 201920112/ 1/ 2
Appointment of a service provider to undertake debt recovery services up to 31st March 2023 2020-06-15 11:00 RFP/ SASSETA/ 201920134/ 1

Pages

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.