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.
Sale of 74 industrial and two unregistered portions of erf 1 Caledon situated in Chavonnes Way Caledon 2022-06-24 12:00 TPM 01/2022/23
Request for Proposal: Children on the Move End of Project Evaluation 2022-06-03 17:00 No reference number
Construction of a security room at the Nama Khoi Workshop in Springbok 2022-05-30 10:00 Q/NC062/10/2021-2022
Control of aquatic and terrestrial invasive plants, removal and disposal of biomass and litter from site 2022-06-21 10:00 343S/2021/22
Maintenance of lifts and escalators for a period of 1 year at King Shaka International Airport 2022-06-21 12:00 KSIA6813/2022
Operation of Tuck shop at Midrand High School 2022-06-03 12:00 Tuckshop Tender MHS_05/2022
Individual Consultant Selection – to Support Procurement and Disbursement Implementation for Bank Finance Projects 2022-06-03 15:00 ET-AUC-293330-CS-INDV
Terms of reference for the recruitment of five (5) consultants for the production of the 2023 Africa’s Development Dynamics Report 2022-06-03 15:00 No reference number
Consultancy services to: Develop proposal for the division of labour between the African Union, Regional Economic Communities, Regional Mechanisms and Member States, pursuant to assembly decisions Assembly/AU/Dec.635 (XXVIII), Ext/Assembly/AU/Dec.1 (XI) and Assembly /AU/Dec.798 (XXXIV) 2022-06-30 15:00 AUC/BCP/C/002
Re-Advert: Appointment of a labour relations specialist/consultant to assist with chairing disciplinary proceedings 2022-05-26 13:00 EWSETA/RFQ/015/2022
Request for proposal for the placement on the municipal panel of attorneys for a period of 36 months 2022-06-09 12:00 16/2022
TD-04/05/2022: Erection and construction of a new container hive next to Thusong and Bongulethu Police Station, Oudtshoorn 2022-06-20 12:00 FORMAL TENDER TD-04/05/2022:
Tender for the appointment of a service provider for online electronic search and information verification for a period of three (3) years from date of appointment 2022-06-20 12:00 FIN003/2022
On-site calibration of power meters at the SABS. 2022-05-24 11:00 RFQ 20570
Re-advert: Appointment of a service provider for the provision and management of security services for the period of three years 2022-06-15 12:00 T02/2022
Re-advert: Appointment of a panel of consulting engineering firms for various projects in Dr Pixley Ka Isaka Seme Local Municipality as and when required for a period of three years 2022-06-03 12:00 T01/2022
Rendering of medical related services as well as professional and community counselling services for a period of three (3) years from date of appointment 2022-06-20 12:00 BA024/2022
Provision for Pest Control and Sanitation Services 2022-06-13 12:00 CO 22/18 O
Supply and delivery of LBO-NCPM1064-AR: LBO pre-mounted in the oven and a Crystal oven with precision temperature controller to iThemba LABS-NRF, Faure, Western Cape 2022-06-02 11:00 iLABS/RFQ 2022/23:51
Provision for Medical Surveillance Services for Staff and Students 2022-06-13 12:00 CO 22/17 O

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