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.
The Appointment of A Service Provider To Supply, Install, Configure And Maintain An Internet Connectivity Services To The Office of The Valuer General For A Period of 36 Months 2021-03-15 11:00 OVG (05) 2020/21
Appointment of service provider to render cleaning and hygiene services for the Department of Agriculture, Land Reform and Rural Development – King Williams Town Deeds Registry for a Period of 24 months. 2021-03-22 11:00 DALRRD (CRD-13) 2020/21
Invitation to service providers to submit proposals for a cloud based contact centre solution and an end to end cloud telephony solution for CIPC head office and all of its current and future branches 2021-04-07 11:00 CIPC Bid Number: 18/2020/2021
Supply and Delivery of Hinged: Hasp and Staple 2021-03-05 11:00 none
Supply and Delivery of Plumbing Materials 2021-03-05 11:00 none
Supply and Delivery of a Multimeter 2021-03-05 11:00 none
Supply and Delivery of Proximity Testers 2021-03-05 11:00 none
Supply and Delivery of Kit 3 Partial Discharge Scanner 2021-03-05 11:00 none
Supply and Delivery of Thermal Imaging Camera 2021-03-05 11:00 none
Supply & Delivery of Lamp: 7235 2021-03-05 11:00 11600413
Invitation for bids for the appointment of an ICT service provider to provide a privilege access management solution (PAM) - installation, implementation, maintenance and support services 2021-04-08 11:00 CIPC Bid Number: 19/2020/2021
Tenders are invited for the Servicing and Repairs to the City Hall as per Returnable Pricing Schedule & Specifications available from our SCM Acquisition Offices, Harrower Rd, North End, PE 2021-03-05 11:00 CSQ02212169
Invitation for reputable and accredited bulk filing and storage companies to participate in the CIPC bid for the “storage of CIPC records (in hard copy and electronic format), scanning of records at request in the prescribed format and/or dispatch to CIPC”. 2021-04-09 11:00 CIPC Bid Number: 20/2020/2021
Supply & Delivery of Submersible Flexible Drive Trash Pumps as Per Specification Obtainable From The Buyers Office, 17 Sellick Street, Uitenhage. 2021-03-08 11:00 GQ02212670
Supply & deliver CRIMPING LUGS 240mm with 12mm hole. 2021-03-05 11:00 SQ02211700
Supply & deliver JOINTS,SPLICING KITS (28-52mm in length min.340mm)P3;M T4. 2021-03-05 11:00 SQ02211700
Supply & deliver ENERGY BULBS BS 14,watt saver,COOL WHITE ,with 1 year guarantee 2021-03-05 11:00 SQ02211700
Supply & deliver DISKUS LOCKS 24/70MM.Viro,Ab us,Cisa or approved equal. 2021-03-05 11:00 SQ02211700
Supply & deliver FERRULES 2.5MM NO.63. 2021-03-05 11:00 SQ02211700
Network Extreme Support Services for a Period of 12 Months 2021-03-05 11:00 RFQ-008512

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