Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)RegulationsPreferential Procurement Regulations, 20178. Local production and contents |
| (1) | The Department of Trade and Industry may, in consultation with the National Treasury— |
| (a) | designate a sector, sub-sector or industry or product in accordance with national development and industrial policies for local production and content, where only locally produced services or goods or locally manufactured goods meet the stipulated minimum threshold for local production and content, taking into account economic and other relevant factors; and |
| (b) | stipulate a minimum threshold for local production and content. |
| (2) | An organ of state must, in the case of a designated sector, advertise the invitation to tender with a specific condition that only locally produced goods or locally manufactured goods, meeting the stipulated minimum threshold for local production and content, will be considered. |
| (3) | The National Treasury must inform organs of state of any designation made in terms of regulation 8(1) through a circular. |
(4)
| (a) | If there is no designated sector, an organ of state may include, as a specific condition of the tender, that only locally produced services or goods or locally manufactured goods with a stipulated minimum threshold for local production and content, will be considered. |
| (b) | The threshold referred to in paragraph (a) must be in accordance with the standards determined by the Department of Trade and Industry in consultation with the National Treasury. |
| (5) | A tender that fails to meet the minimum stipulated threshold for local production and content is an unacceptable tender. |