The treatment of imports as a procurement exclusion in the Amended Codes

Posted by Transcend
Thursday, 10 March 2016  |  Comments

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The treatment of imports as a procurement exculsion in the Amended Codes

Many procurement managers have not yet fully understood the requirements for imports to be excluded under the Amended Codes.

The following in a summary of which imported goods and services may be excluded from measured procurement spend:

1.Imported capital goods or components for value-added production in South Africa provided that:
- there is no existing local production of such capital goods or components; and
- importing those capital goods or components promotes further value-added production within South Africa;

2. Imported goods and services other than those listed above, if there is no local production of those goods or services including, but not limited to, imported goods or services that:
- carry a brand different to the locally produced goods or services; or
- have different technical specifications to the locally produced goods or services.

The Amended Codes further states that exclusion of the items listed in 2. above are subject to a localisation plan, which Transcend can assist you in developing and should include:
- Clear objectives
- Priority interventions
- Key performance indicators; and
- A concise implementation plan with clearly articulated milestones.

For assistance in developing the localisation plan email brian@transcend.co.za

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