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 & deliver SCADA EQUIPMENT to be fully compatible wth existing Motorola Ace equipment already installed which must include protocols;MDLC,I EC101,DNP3.0,M ODBUS,IEC6185 0. 2021-03-05 11:00 GQ02212668
Supply and deliver LEAD SLEEVES 87mm x 1.5metre. 2021-03-05 11:00 SQ02211707
ARC Data Centre ( DC) Assessment Services 2021-03-05 14:00 RFQ-008736
Supply & deliver LEAD SLEEVES 75mm x 1.5mtr 2021-03-05 11:00 SQ02211707
Supply & deliver TINNED COPPER WIRE,2.0MM fusewire 2021-03-05 11:00 SQ02211707
Supply & deliver INSULATED GLOVES,RUBBER working voltage 1000v max,Class 0, S.A.B.S. BS, Size 10 (large).Elsec or approved equal. 2021-03-05 11:00 SQ02211707
Economic Scenario Generator 2021-03-15 12:00 2020/21
Tenders are invited for the Servicing and Repairs to the Feather Market Conference Centre as per Pricing Schedule & Specifications available from SCM Acquisition Offices, Harrower Rd, North End, PE. 2021-03-08 11:00 CSQ02212170
Supply & Deliver of Shredder as per Specification 2021-03-09 11:00 GQ02212676
Provision of Hiring and Delivery of thirty (30) Skips for Loading Iron-ore for period of 2 years 2021-03-30 10:00 ICLM SD 340/TPT
Spray Bottles 500ml (Empty) 2021-03-05 11:00 SQ02211715
Bac Hard Sanitizer For Vehicles And Hard Surfaces In 20l Drums. 2021-03-05 11:00 SQ02211715
For the Eastern Cape Intelligent Transport System (ITS) – design, build, operate and maintain 2021-04-02 11:00 SANRAL X.003-023-2018/1 AND X.003-055-2020/1
Bac Hard Sanitizer For Vehicles And Hard Surfaces In 20l Drums. 2021-03-05 11:00 SQ02211715
16l Knapsack Sprayer Complete With Shoulder Straps And Adjustable Brass Nozzle With Metal Pump Lever, Hogh Quantity Bendable Plastic Pipe With Metal Hand Piece Pipe. 2021-03-05 11:00 SQ02211715
For upgrading of National Route N2 between Grahamstown and Fish River Pass. Phase 3: section 13, km 92.6 to km 103.6, and section 14, km 0.0 to km 5.05 2021-03-26 11:00 SANRAL N.002-145-2016/1
Switch Gear Airtype 22kv 400 Amp Rocking Type Pole Mounting 3449 15.1 Ka Cripeece 550 Mm. 2021-03-08 11:00 SQ02211716
Wire Tinned Copper 2.0 Mm Fusewire In 500 Gram Roll. 2021-03-08 11:00 SQ02211716
Boxes Fire Hydrant Cast Iron To Sabs 558 Type 5 With Letters F.H. Bitumen Dipped (Hydrex Z300x400-C) 2021-03-08 11:00 SQ02211716
Line Splice Automatic Full Tension For Pine Aaal Fargo Gl 407. 2021-03-09 11:00 SQ02211706

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.