IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Feb 2017 | Removal date: open ended
Still in force

Public procurement localisation

The Instruction designates minimum procurement localisation requirements for conversion processes for local production and content for steel products and components for construction. Local content and production of these steel products and components procured by South African government entities must contain a local content threshold of 100%. The input of raw material in the product of steel products and components for construction are included in the calculation of the local content i.e. these must also be undertaken in South Africa. The minimum public procurement requirements entered into force on 1 February 2017.

Steel products and components for construction cover the following goods: fabricated structural steel, frames, roof cladding, vertical cladding, wire products, fasteners, ducting and structural pipework, gutters, downpipes and ladders made from sheeting as well as primary steel products including flat and long products.

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 which public procurement bids have to comply with a set of minimum local production requirements. Such minimums vary by sector. If input materials or components of the subject good cannot be obtained in South Africa a written exemption must be submitted and approved by the DTI.

Any organ of the state may also choose to establish a 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

412 Products of iron or steel
7210 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, clad, plated or coated.
721011 Of a thickness of 0.5 mm or more
721012 Of a thickness of less than 0.5 mm
721030 Electrolytically plated or coated with zinc
721041 Corrugated
721049 Other
721050 Plated or coated with chromium oxides or with chromium and chromium oxides
721061 Plated or coated with aluminiumzinc alloys
721069 Other
721070 Painted, varnished or coated with plastics
721090 Other
7216 Angles, shapes and sections of iron or nonalloy steel.
721631 U sections
721632 I sections
721633 H sections
721650 Other angles, shapes and sections, not further worked than hot rolled, hotdrawn or extruded
721691 Coldformed or coldfinished from flatrolled products
721699 Other
7217 Wire of iron or nonalloy steel.
721710 Not plated or coated, whether or not polished
721720 Plated or coated with zinc
721730 Plated or coated with other base metals
721790 Other
7220 Flatrolled products of stainless steel, of a width of less than 600 mm.
722020 Not further worked than coldrolled (coldreduced)
722090 Other
7222 Other bars and rods of stainless steel; angles, shapes and sections of stainless steel.
722220 Bars and rods, not further worked than coldformed or coldfinished
722230 Other bars and rods
722240 Angles, shapes and sections
7307 Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel.
730721 Flanges
730729 Other
730791 Flanges
730799 Other
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
730890 Other
429 Other fabricated metal products
7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotterpins, washers (including spring washers) and similar articles, of iron or steel.
731812 Other wood screws
7326 Other articles of iron or steel.
732690 Other

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