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.
Repairing of potholes in Ward 5 2019-12-19 12:00 138/2019/20
Repairing of potholes in Ward 4 2019-12-19 12:00 139/2019/20
Repairing of potholes in Ward 2 2019-12-19 12:00 140/2019/20
Repairing of potholes in Ward 1 2019-12-19 12:00 141/2019/20
Bidders are invited for Collection, Conveyance and Deposit of Cash for the period of 36 months. 2020-01-17 12:00 LIM473/cashcollection/19/20/26
Expression of Interest for Hotel and Conference Facility Development and Operations in Steve Tshwete Municipality - Middelburg Mpumalanga 2020-01-08 12:00 BS05/11/2019
For the supply and delivery of a new white 26 seater minibus 2019-12-19 16:00 ITB/RSA/SU/12.03/2019
Supply and Delivery of Plumbing Fittings 2019-12-17 11:00 303133
Electrical Maintenance and Fault Findings For Breede Valley Municipality’s wwtw’s and Pumpstations 2019-12-17 11:00 303281
Supply, Delivery and Installation of Air Conditioners at Worcester wwtw 2019-12-17 11:00 301985
Stripping, Repair and Reassemble of 4 Robot Submersible Pumps and 1 X 15 Kw Electrical Motor at Worcester Wastewater Treatment Works. 2019-12-17 11:00 303274
Supply and Delivery Cable 300mm Single Core 2019-12-17 11:00 303241
Supply and Delivery of Electrical Fittings 2019-12-17 11:00 303243
Supply and Delivery of Office Furniture 2019-12-19 11:00 303296
Supply and Installation of Control Equipment and Office Furniture for Oyama and Tshepiso Dreamweaver 2019-12-13 12:00 RFQ/LED/2019-20/249
Service Provider to Supply and Deliver a Fruit Juice Production Equipment 2019-12-13 12:00 RFQ/LED/2019-20/248
First Aid Level 3 Training Programme 2019-12-13 12:00 RFQ/DHR/2019-20/247
Supply and Delivery Of 30 X Size 315/80r22.5 Stock Retreads For Coastal Solid Waste Vehicles 2019-12-13 12:00 RFQ/DIS/2019-20/246
Supply and Delivery of a Portable Breathing Air Compressor 2019-12-20 12:00 RFQ/HPS/2019-20/252
Supply and Delivery of Firefighting Hoses Complete 2019-12-20 12:00 RFQ/HPS/2019-20/251

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