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: 25 Aug 2016 | Removal date: open ended
Still in force

Public procurement localisation

This intervention designates minimum procurement localisation requirements for transformers, shunt reactors and associated equipment. Effective 25 August 2016, transformers, shunt reactors and associated equipment procured by the South African government entity must contain a local content value of 100%.

Under the procurement rules of 2011, the South African Department of Trade and Industry (DTI), alongside the National Treasury, has the power to designate specific sectors in where public procurement bids have to comply with a set of local production requirements stipulated minimum. Such minimums vary by sector. If raw materials or input are not available to produce such products, bidders must obtain written authorization of the DTI to import such materials.

Any organ of the state may also choose to establish local manufacturing minimum for non-designated sectors. Such minimums must follow the DTI and the National Treasury’s directives and consult with them beforehand.

Such minimums may include small variations amongst the percentage of a minimum required depending on the length of the public procurement contract.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

461 Electric motors, generators & transformers; parts
8504 Electrical transformers, static converters (for example, rectifiers) and inductors.
850410 Ballasts for discharge lamps or tubes
850421 Having a power handling capacity not exceeding 650 kVA
850422 Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA
850423 Having a power handling capacity exceeding 10,000 kVA
850431 Having a power handling capacity not exceeding 1 kVA
850433 Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA
850434 Having a power handling capacity exceeding 500 kVA
850440 Static converters
850450 Other inductors
850490 Parts

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