Guidance Document for the Calculation of Local Content

This guidance document issued by the South African Department of Trade and Industry (the dti) provides tenderers with a detailed description of how to calculate local content of products (goods, services and works) by components/material/services, and enables them to keep an updated record for verification requirements as per SATS 1286:2011. The guideline consists of a written guide and three declarations: Declaration C (Local Content Declaration – Summary Schedule), Declaration D (Imported Content Declaration – Supporting Schedule to Annex C), and Declaration E (Local Content Declaration – Supporting Schedule to Annex C). It covers definitions of local and imported content, categories of imported content (directly by tenderer and via third party), exempt imported content, and detailed field-by-field instructions for completing Annexures C, D and E including calculation of tender prices, landed costs, exchange rates, local content percentages, manpower costs, factory overheads, and administration overheads.