ANNOUNCEMENT 26 Sep 2012
On 26 September 2012, the South African National Treasury issued National Treasury designated sectors Instruction of 2012 designating set top boxes as a sector for public procurement under the Preferential Procurement Regulations, 2011.
NUMBER OF INTERVENTIONS
National Treasury of South Africa, National Treasury Instruction Notes on invitation and evaluation of bids based on a stipulated minimum threshold for local production and content: For the set top boxes sector, 26 September 2012: http://ocpo.treasury.gov.za/Resource_Centre/Legislation/INote%20on%20a%20stipulated%20minimum%20threshold%20for%20Set%20Top%20Boxes%20Sector.pdf
The Instruction designates minimum procurement localisation requirements for set top boxes. Local content and production of the subject good procured by South African government entities must contain a local content threshold of 30%. In this context, the following components and manufacturing activities of set top boxes must be exclusively undertaken in South Africa: PC board, PD board population, connection cables, enclosures and set top boxes assembly. The minimum public procurement requirements entered into force on 26 September 2012.
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.