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 Service Providers For The Supply, Delivery and Off-Loading Of Bulk Metering Kiosks (Bmk) and Freestanding Bulk Metering Units (Bmu) On an as-and-When Required Basis From Date Of Award Until 30 June 2024. 2021-07-22 10:00 A-EE 04 - 2021
The Appointment of a Service Provider For The Supply Of Sip Terminals, Sip Trunk Services, Telephony Support Services of a Dedicated Hosted Multi-Tenancy Pbx & Ucc Platform As Well As Direct Internet Access (Centralised Breakout) on an as When Required Basis On From Date Of Award Until 30 June 2024 2021-07-21 10:00 A-ICT 03 - 2021
The Appointment of a Service Provider for The Supply, Installation, Support and Maintenance of The Fleet Tracking Units and Monitoring Data On as and When Required Basis From Date Of Award Until 30 June 2024 2021-07-21 10:00 A-ICT 04 - 2021
The appointment of a service provider for upgrading of ten (10) existing air quality monitoring stations: supply and installation of meteorological sensors and equipment, and particulate matter 2.5 (pm2.5) analysers from date of award until 30 June 2022 2021-07-09 10:00 A-HEA 04-2021
The appointment of Electrical Contractors for the Electrification Projects in City of Ekurhuleni on an as and when required basis from date of award until 30 June 2024 2021-07-19 10:00 A-EE 17-2021
The Appointment of Electrical Contractors For The Supply, Installation and Commissioning Of 25m Counter-Balanced Highmast Lighting Structures on an as-and-When Required Basis From Date of Award Until 30 June 2024. 2021-07-23 10:00 A-EE 05 - 2021
The Appointment Of Service Providers for the Testing, Fault Location, Repair and Maintenance Of Gas Filled and Oil Filled Underground Cable Networks From 33kv To 132kv on an as and When Required Basis From Date Of Award Until 30 June 2024. 2021-07-26 10:00 A-EE 10 - 2020
The Appointment of Electrical Contractors For The Repair and Maintenance Of Paper Insulated And Xlpe Underground Cable Networks From 33kv Up to 132kv and Associated Copper and Optic Fibre Pilot Cables on an and When Required Basis From Date Of Award Until 30 June 2024. 2021-07-26 10:00 A-EE 11 - 2020
Appointment Of Electrical Contractors for the Installation Of New Medium and Low Voltage Cables (Copper And Aluminium) and Equipment as well as Pilot Cables (Optic Fibre) For Planning and Construction Reticulation Projects on an as-And when Required Basis From Date Of Award Until 30 June 2024. 2021-07-23 10:00 A-EE 11 - 2021
Appointment of a Debt Sponsor, Panel of Dealers and Settlement and Paying Agent for the IDC Domestic Medium Term Note (DMTN) Programme 2021-06-28 11:00 T24/06/21
Appointment of CIDB grading 1EB to 3 EB contractors for minor routine electrical maintenance of CoE buildings/facilities, property, plant, and equipment on an as and when required basis from date of award until 30 June 2024 2021-07-22 10:00 A-RE 01-2021
Appointment of electrical contractors with a CIDB grading of 4EB (including 3EB PE) to 9EB for electrical maintenance work in all CoE buildings/facilities, property, plant and equipment on an as and when required basis from date of award until 30 June 2024 2021-07-23 10:00 A-RE 05-2020
Appointment of service providers for distribution, putting-up and removal of printed material for various projects carried out by City of Ekurhuleni on an as and when required basis from date of award until 30 June 2024. 2021-08-12 10:00 A- CM 01-2021
Appointment of a Panel Of Specialist Forensic Investigation For the City Of Johannesburg for the Period Of Thirty Six Months (36 Months). 2021-07-09 10:30 A873
Provision of travel, accommodation and conferencing services 2021-07-09 11:00 CGET 02/2021/22
Provision of cleaning and hygiene services 2021-07-09 11:00 CGET 01/2021/22
Co-sourcing of internal audit activities 2021-07-09 11:00 CGET 03/2021/22
Request For The Provision Of Office Accommodation/Space For The Ugu District Municipality Budget & Treasury And Human Resources Units For A Period Of Thirty-Six (36) Months 2021-07-23 12:00 UGU-05-1565-2020
Service Providers To Form A Panel Of Medical Practitioners For uMgungundlovu District Municipality 2021-07-29 12:00 02/2021
Disposal/Auction Of Council Vehicle 2021-06-29 09:00 ZDMQ: 0122/06/2021

Pages

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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