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.
Department of Health: Dundee Regional: Upgrades and renovations to Dundee regional laundry. Only bidders who are 6GB and above will legible to bid. 2020-08-03 11:00 ZNTL 02400W: WIMS 055041
Goodwood: Correctional Centre: Intergrated Security Systems (ISS) Appointment of Electrical Engineer: 36 Months: Only BBBEE Level 1 & 2 2020-07-31 11:00 CPT1003 / 20
Cape Town: Parliamentary Villages: Appointment of a specialised deep cleaning contractor for a period of 24 mnoths: Only BBBEE Level 1 & 2 2020-07-31 11:00 CPT1004 / 20
Malmesbury : Correctional Centre : Intergrated Security Systems (ISS) Appointment of Electrical Engineer : 36 Months : Only BBBEE Level 1 & 2 2020-07-31 11:00 CPT1002 / 20
RFB 2190-2020: Provision of hygiene services to SITA Erasmuskloof, Centurion, Numerus and Beta buildings for a period of 36 months. 2020-07-31 11:00 RFB 2190- 2020
RFB 2147-2020: Provide Maintenance and Support of Video Conferencing Equipment and related Software to Department of Correctional Services (DCS) for a period of twelve (12) months. 2020-07-31 11:00 RFB 2147- 2020
Appointment of a service provider to deliver cleaning services to SITA Mpumalanga buildings (Nelspruit and Middelburg) for a period of 36 months. 2020-07-31 11:00 RFB 2173/ 2020
Request to place and advertisement of the Bid: RTMC BID 04/2020/21 for appointment of a service provider to provide security services at RTMC Colleges (Boekenhoutkloof and Denel Campus) and Head Office (Eco Park, Centurion) for a period of two (2) years 2020-08-05 11:00 RTMC BID 04/ 2020/ 21
Request to place and advertisement of the Bid: RTMC BID 02/2020/21 for appointment of a panel for Information Technology and related services for a period of five (5) years 2020-08-04 11:00 RTMC BID 02/ 2020/ 21
Appointment of a service provider to intergrate gender based violence (GBV) system and victims empowerment (VEP) system to enable the information exchange between the intergrated justice system (IJS) cluster departments 2020-07-31 11:00 SD04/ 2020
Appointment of a service provider to develop an alternative care management system 2020-07-31 11:00 SD05/ 2020
Department of Public Works: Harry Gwala District Office, 2 Margaret Street: Ixopo: Provision of Security Service for the period of 36 months 2020-08-13 11:00 ZNT 2955W
Appointment of a service provider for facility management services at a detention facility for illegal immigrants pending deportation to their countries of origin by the Department of Home Affairs for a period of sixty (60) months. 2020-08-07 11:00 DHA10- 2020
To supply and fitting of Steel Cabinets for Five (5) Hospitality Kitchens. 2020-08-03 11:00 EEC/ T02/ 2020
The provisioning of optometric services and optometric consumables for a period of three (3) years with an option to extend for an additional two (2) years based on performance for Red Cross War Memorial Children’s Hospital (RCWMCH) 2020-08-07 11:00 RCCH07/ 2020
TBH 504/2020: For the installation of waste compacting unit and rendering of a waste compacting and removal service at Tygerberg Hospital for a period of three (3) years 01 September 2020 until 30 August 2023, thereafter on a month-to-month basis not exceeding four (4) months 2020-08-07 11:00 TBH 504/ 2020
Request for proposal for the appointment of strategic investor for the operationalization of Bhambanana abattoir on “operate, train & transfer” principles prequalification criteria 2020-07-30 11:00 DARD11/ 20A
Supply, deliver and offload new tractors and implements at Ethekwini and Ilembe District Offices 2020-07-30 11:00 DARD10/ 20A
Appointment of service provider to oversee the implementation of four (04) Agri-hubs in KwaZulu Natal Province. 2020-07-30 11:00 DARD09/ 20A
For the supply and delivery of frozen vegetable products for the Food Services Department at Tygerberg Hospital for a twelve (12) month period, effective 1 September 2020 until 31 August 2021 with the option to extend on a month to month basis not exceeding four (4) months 2020-08-07 11:00 TBH 306/ 2020

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