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.
Placement of next generation sequencer for a period of (5) five years for Virology Doctor George Mukhari with service and maintenance. 2020-10-09 11:00 RFB187/ 19/ 20
Standard Laptops 2020-10-13 11:00 0010430697
Renewal of Mimecast licenses for KwaZulu-Natal Department of Human Settlement for a period of three (3) years. 2020-10-09 11:00 RFB 2130/ 2020
RFB 2226/2020: Supply, install and configure an electronic mail secure archive and compliance solution to Sita with maintenance and support for a period of five (5) years 2020-10-09 11:00 RFB 2226- 2020
Supply and delivery of Lidar camera (with maintenance and spares contract) and post-processing software (including updates) for the SAEON Elwandle Node’s existing Airborne Remote Sensing Platform in Port Elizabeth 2020-10-23 11:00 NRF/ SAEONLIDAR/ 12/ 2020- 21
Supply and delivery of 9mm and 5.56mm ammunition to the Public Transport Enforcement Services Directorate for a 3 year project 2020-10-09 11:00 ZNB0068/ 19T
Appointment of a suitable service provider for a once-off supply, delivery and installation of office furniture at the Office of the valuer General Centre Walk building. 2020-10-09 11:00 OVG (03) 2020/ 21
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Ugu District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0799-0958 E/ 2019/2020 2020-10-09 11:00 ZNB 0007 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umlazi District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1325-1450 E/ 2019/2020 2020-10-09 11:00 ZNB 0010 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within iLembe District under the National School Nutrition Programme (NSNP) for Kwazulu-Natal Department of Education for the duration of the current tender ZNB 0249-0379 E/ 2019/2020 2020-10-09 11:00 ZNB 0004 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umzinyathi District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1451-1595 E/ 2019/2020 2020-10-09 11:00 ZNB 0011 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umgungundlovu District under the National School Nutrition Programme (NSNP) for KwazZulu-Natal Department of Education for the duration of the current tender ZNB 0959-1127 E/ 2019/2020 2020-10-09 11:00 ZNB 0008 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Pinetown District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0600-0798 E/ 2019/2020 2020-10-09 11:00 ZNB 0006 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within King Cetswayo District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0380-0599 E/ 2019/2020 2020-10-09 11:00 ZNB 0005 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Amajuba District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0035-0126 E/ 2019/2020 2020-10-09 11:00 ZNB 0002 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Harry Gwala District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 0127-0248 E/ 2019/2020 2020-10-09 11:00 ZNB 0003 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Umkhanyakude District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1128-1324 E/ 2019/2020 2020-10-09 11:00 ZNB 0009 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Uthukela District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1451-1595 E/ 2019/2020 2020-10-09 11:00 ZNB 0012 E/ 2020/ 2021
Expression of interest in the appointment of service providers to be included in a database for the replacement of defaulting service providers and allocation of new clusters in the provision of food items [perishables and non–perishables] to feeding schools within Zululand District under the National School Nutrition Programme (NSNP) for KwaZulu-Natal Department of Education for the duration of the current tender ZNB 1451-1595 E/ 2019/2020 2020-10-09 11:00 ZNB 0013 E/ 2020/ 2021
Call for expression of interest to provide various off-the-shelf eLearning courses 2020-10-07 15:00 AUC/AHRM/C/006

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