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.
Training of 23 EPWP participants on Occupational Certificate: Health Promotion Officer: SAQA ID 94597: NQF Level 3: QCTO Learnership Registration Number 11Q110030001633 in Gert Sibande District Municipality: Project Name: Isiphephelo HBC 2020-09-01 11:00 HP20/ 003GS
Training of 25 expanded public works programme (EPWP) participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID: 60209: NQF level 4: HWSETA learnership registration number: 11Q110014351554 in Capricorn District Municipality: Bakone HCBC 2020-09-01 11:00 HP20/ 002GS
Training of 25 EPWP participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID 60209: NQF Level 4: HWSETA Learnership Registration Number: 11Q110014351554 in West Rand District Municipality. 2020-09-01 11:00 HP20/ 005GS
Training of 20 expanded public works programme (EPWP) participants on National Certificate: general security practice: SAQA ID: 58577: NQF level 3: SASSETA learnership registration number: 29Q290038431243 in Garden Route District Municipality: Law Enforcement 2020-09-01 11:00 HP20/ 004GS
Provision of haemodialysis services to selected institutions in Kwazulu-Natal Department of Health: 3 year contract. 2020-09-02 11:00 ZNB 5284/ 2020- H
The objective of this Terms of Reference (TOR) is to outline the scope of work for the provision of the MPLS services for CATHSSETA. 2020-08-31 11:00 CATHS/ MPLS/ 021/ 2020
The objective of this bid is to appoint a panel of three (3) Legal and Compliance Experts to assist CATHSSETA with legal matters and ancillary related services. 2020-08-31 11:00 CATHS/ PLCE/ 024/ 2020
The NEF herewith invites potential service providers to submit proposals for the provision of Reliable and Secured Internet Connectivity. 2020-09-01 15:00 RFP: NEF 02/2020/21: (Provision of Reliable and Secured Internet Connectivity)
Procurement Of Supply, Installation, Configuration, Maintenance And Support For NGN Edge Routers, Servers And Peripherals For The National Department Of Labour For The Period Of Five (5) Years. 2020-08-28 11:00 RFB 2217/ 2020
Provide Enterprise Content Management (ECM) Implementation Services for KZN COGTA including Maintenance and Support for a period of three (3) years. 2020-08-28 11:00 RFB 2171/ 2020
Provision of Vulnerability Management Solution with support for the Department of Defence (DOD) for a period of thirty-six (36) month 2020-09-04 11:00 RFB 2200/ 2020
Provision of health and hygiene packages to ECD centres in the Northern Cape Province 2020-08-14 11:00 NC/ SOC/ 007/ 2020
Provision of personal protective equipment (PPEs) for soup kitchens and nutrition centres in NC 2. 2020-08-14 11:00 NC/ SOC/ 008/ 2020
Panel of Three (3) Suppliers for Maintenance/Services and Repairs on Fleet (Trucks, Cars and LDV`s) for Two (2) Years 2020-09-07 12:00 GTLM/INFR17/2020/2021
Supply and Delivery of 500PPM Farm Grade Diesel Fuel for Onrus caravan Park for a contract period ending 30 June 2023 2020-09-11 12:00 SC 2110/2020
Supply and Delivery of 3-Ton Truck with a Canopy 2020-08-21 12:00 GTLM/INFR22/2020/2021
Supply and Delivery of Two Double Cab LDV (4X2) 2020-08-21 12:00 GTLM/INFR23/2020/2021
Planning, Design, Construction Monitoring, Construction and Close Out (Turnkey) of Rooiwal Access Road 2020-09-07 12:00 GTLM/INFR18/2020/2021
Quotation for Wireless Project 2020-08-14 11:00 KCDM/Quote/48/2020
As and When Electrical and Refrigeration Contract for East London 2020-08-15 16:00 ECR/08/08/2020

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