IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 07 Dec 2011 | Removal date: open ended
Still in force

Public procurement preference margin

On 8 June 2011, the National Treasury of South Africa gazetted new Preferential Procurement Regulations, which grants the preference for local firms in line with the Broad-Based Black Economic Empowerment (B-BBEE) Act. The B-BBEE Act aims to eliminate any economic disadvantages that are remnants of the Apartheid regime by promoting corporate ownership, management positions, employment equity, enterprise development etc. among the black population.

In line with this policy, the Preferential Procurement Regulations provide for a preference point system whereby tenderers that have a higher B-BBEE status level (i.e. that score better in terms of black economic empowerment) enjoy progressive procurement preferences.

Moreover, in the case of designated sectors where local production and content is deemed 'of critical importance', the tendering procedure must be restricted to locally produced goods, services or works only (Art. 9(1)).
As of April 2014, these designated sectors are: 

  • Bus bodies
  • Textile, clothing, leather and footwear
  • Power pylons
  • Canned / processed vegetables
  • Railway rolling stock
  • Pharmaceutical products
  • Set-top boxes for TV digital migration
  • Furniture
  • Power and telecom cables
  • Solar Water Heaters

And the shipbuilding sector is about to be designated (see "Related measures").
 
The "Tariff lines affected", "Sectors affected", and "Affected trading partners" listed here are those with respect to the designated sectors. As the B-BBEE scheme covers all economic activities, though, the true number of tariff lines, sectors and trading partners affected is likely to be higher.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

213 Prepared & preserved vegetables, pulses & potatoes
2002 Tomatoes prepared or preserved otherwise than by vinegar or acetic acid.
200210 Tomatoes, whole or in pieces
200290 Other
2004 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 20.06.
200410 Potatoes
2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 20.06.
200520 Potatoes
200551 Beans, shelled
200580 Sweet corn (Zea mays var. saccharata)
271 Made-up textile articles
9404 Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or
940430 Sleeping bags
940490 Other
352 Pharmaceutical products
3001 Glands and other organs for organotherapeutic uses, dried, whether or not powdered; extracts of glands or other organs or of their secretions for organotherapeutic uses; heparin and its salts; other human or animal substances prepared for therapeutic or
300190 Other
3002 Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes; vaccines, toxins, cultures of micr
300210 Antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes
300220 Vaccines for human medicine
300230 Vaccines for veterinary medicine
300290 Other
3003 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale.
300320 Containing other antibiotics
300390 Other
3004 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packin
300410 Containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives
300420 Containing other antibiotics
300431 Containing insulin
300432 Containing corticosteroid hormones, their derivatives or structural analogues
300439 Other
300440 Containing alkaloids or derivatives thereof but not containing hormones, other products of heading 29.37 or antibiotics
300450 Other medicaments containing vitamins or other products of heading 29.36
300490 Other
3005 Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes.
300510 Adhesive dressings and other articles having an adhesive layer
300590 Other
3006 Pharmaceutical goods specified in Note 4 to this Chapter.
300610 Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dent
300630 Opacifying preparations for Xray examinations; diagnostic reagents designed to be administered to the patient
300640 Dental cements and other dental fillings; bone reconstruction cements
300660 Chemical contraceptive preparations based on hormones, on other products of heading 29.37 or on spermicides
369 Other plastics products
3006 Pharmaceutical goods specified in Note 4 to this Chapter.
300691 Appliances identifiable for ostomy use
381 Furniture
9401 Seats (other than those of heading 94.02), whether or not convertible into beds, and parts thereof.
940120 Seats of a kind used for motor vehicles
940130 Swivel seats with variable height adjustment
940140 Seats other than garden seats or camping equipment, convertible into beds
940151 Of bamboo or rattan
940161 Upholstered
940169 Other
940171 Upholstered
940179 Other
940180 Other seats
940190 Parts
9403 Other furniture and parts thereof.
940320 Other metal furniture
940330 Wooden furniture of a kind used in offices
940340 Wooden furniture of a kind used in the kitchen
940350 Wooden furniture of a kind used in the bedroom
940360 Other wooden furniture
940370 Furniture of plastics
940381 Of bamboo or rattan
940389 Other
940390 Parts
9404 Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or
940410 Mattress supports
940429 Of other materials
387 Prefabricated buildings
9406 Prefabricated buildings.
940600 Prefabricated buildings.
421 Structural metal products & parts
7308 Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridgesections, lockgates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors,
730820 Towers and lattice masts
730830 Doors, windows and their frames and thresholds for doors
730840 Equipment for scaffolding, shuttering, propping or pitpropping
730890 Other
439 Other general-purpose machinery & parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841940 Distilling or rectifying plant
841950 Heat exchange units
841960 Machinery for liquefying air or other gases
841989 Other
841990 Parts
445 Machinery for food, beverage & tobacco processing; parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841981 For making hot drinks or for cooking or heating food
448 Domestic appliances & parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841911 Instantaneous gas water heaters
841919 Other
449 Other special-purpose machinery & parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841939 Other
463 Insulated wire & cable; optical fibre cables
8544 Insulated (including enamelled or anodised) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with
854411 Of copper
854420 Coaxial cable and other coaxial electric conductors
854430 Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships
854442 Fitted with connectors
854449 Other
854460 Other electric conductors, for a voltage exceeding 1,000 V
854470 Optical fibre cables
465 Electric filament or discharge lamps; lighting equipment; parts
9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof not elsewhere spe
940510 Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares
940520 Electric table, desk, bedside or floorstanding lamps
940530 Lighting sets of a kind used for Christmas trees
940540 Other electric lamps and lighting fittings
940550 Nonelectrical lamps and lighting fittings
940599 Other
473 Broadcast recording apparatus; microphones, loudspeakers, etc.
8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus.
852841 Of a kind solely or principally used in an automatic data processing system of heading 84.71
852849 Other
852851 Of a kind solely or principally used in an automatic data processing system of heading 84.71
852859 Other
852861 Of a kind solely or principally used in an automatic data processing system of heading 84.71
852869 Other
852871 Not designed to incorporate a video display or screen
852872 Other, colour
852873 Other, monochrome
481 Medical & surgical equipment & orthopaedic appliances
9402 Medical, surgical, dental or veterinary furniture (for example, operating tables, examination tables, hospital beds with mechanical fittings, dentists' chairs); barbers' chairs and similar chairs, having rotating as well as both reclining and elevating mo
940290 Other
492 Motor vehicle bodies; trailers & parts thereof
8707 Bodies (including cabs), for the motor vehicles of headings 87.01 to 87.05.
870790 Other
495 Railway & tramway locomotives & rolling stock; parts
8607 Parts of railway or tramway locomotives or rollingstock.
860711 Driving bogies and bisselbogies
860712 Other bogies and bisselbogies
860719 Other, including parts
860721 Air brakes and parts thereof
860729 Other
860730 Hooks and other coupling devices, buffers, and parts thereof
860791 Of locomotives
860799 Other

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