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.
PNQ4 IT HARDWARE. 2021-05-20 10:00 PNQ4 IT HARDWARE
PNQ4 HARDWARE 2021-05-20 10:00 PNQ4 HARDWARE
PNQ4ELECTRICAL 2021-05-20 10:00 PNQ4ELECTRICAL
Supply , Delivery and Off-Loading of Toilet Paper and Hand Towels as From 01 July 2021 – 30 June 2024 2021-05-31 12:00 B/SM 94/21
Sampling and Testing of Potable and Waste Samples in The Stellenbosch Municipal Area for a Contract Period Ending 30 June 2024 2021-06-07 12:00 BSM 100/21
Additions and alterations for Community Development Offices in 21 Simonsberg Street, Stellenbosch 2021-06-07 12:00 B/SM 99/21
Provision of travel management services to the Buffalo City Metropolitan Development Agency Soc Ltd (BCMDA) for a period of 3 years 2021-06-14 12:00 BID 3 OF 2021
Underwriting & Management of Municipal Short Term Insurance & Risk Portfolio: Contract period: 1 July 2021 to 30 June 2022 2021-06-02 12:00 B/SM 102/21
Provision Of Professional Services for the Design, Tender Documentation and Contract Supervision For New Cells and Associated Infrastructure at The Stellenbosch Landfill 2021-06-14 12:00 BSM 98/21
Supply and Delivery Of 100w Lamps: 7258 2021-05-19 11:00 None
Supply and Delivery of Strapping: 10786 2021-05-19 11:00 None
Supply and Delivery of Advanced Multi-Meter. 2021-05-20 11:00 None
Supply and Delivery Of Frl 95 – 240 Mech Sc (5351) 2021-05-20 11:00 11657916
Supply and Delivery of Pole Mount Dome Miniature Circuit Breaker Cover Item: 540 2021-05-24 11:00 None
Tenders are invited for SANA CALIBRATION FOR TESTO SAVERIS 2 DATA LOGGER WIFI SYSTEM. 2021-05-20 11:00 CSQ04212236
Tenders are Invited for the Repair and Replace GC and GC-MS lines as per Specification, available at SCM:Acquisitions, Harrower Road Port Elizabeth. 2021-05-20 11:00 CSQ04212247
Tenders are invited for the Renovation of Extraction System for Chemical Woods as per Specifications, available at SCM: Acquisitions, Harrower Road, Port Elizabeth. 2021-05-20 11:00 CSQ04212247
Tenders are invited for Supply and Delivery of Laboratory Glassware as per Specification, Available at SCM: Acquisitions, Harrower Road, Port Elizabeth. 2021-05-20 11:00 GQ04212772
Tenders are invited for the Purchasing of Microbiological Laboratory Media as per Specification, Available at SCM: Acquisitions, Harrower Road, Port Elizabeth. 2021-05-20 11:00 GQ04212772
Request for Expression of Interest – Air Conditioning Consultancy Firm 2021-05-25 16:00 ADB/EOI/RDGS/2021/0076

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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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