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: 02 Dec 2017 | Removal date: open ended
Still in force

Public procurement localisation

The National Circular Number 2 of 2017/2018 designating the rail permanent way sector for public procurement was issued on 13 November 2017 and entered into force on 2 December 2017. The Circular designates minimum procurement localisation requirements for the sector and hereunder a number of goods under the Preferential Procurement Regulations, 2017, see related state act.

The minimum local content requirement on the rail permanent way sector procured by South African government entities must, in general, contain a local content threshold of 90%. Hereunder a minimum local content requirement of 100% is imposed on rails and rail joints, ballasts, ballastless, turnouts /switches and crossings, railway sleepers, rail fastening and accessories, as well as assembly and testing of fully built units, whilst railway maintenance of way plant and equipment is set at 70%. In this context, all primary steel related products and all castings and forgings related products in various materials must be manufactured and sourced locally when purchased by South African government entities for the assembly and manufacture of Rail Permanent Way Sector.

Additionally, the Circular in this context outlined that this is to support and sustain the: "existing local steelmaking capacity" and the "the existing local foundry industry and the creation of additional castings and forging capabilities".

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

412 Products of iron or steel
7302 Railway or tramway track construction material of iron or steel, the following : rails, checkrails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (crossties), fishplates, chairs, chair wedges, sole plates
730210 Rails

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