(1) The Minister responsible for trade, industry and competition (herein called ‘‘the responsible Minister’’) must, by notice in the Gazette—
(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 or manufactured goods meet the stipulated minimum threshold for local production and content, taking into account economic and other relevant factors;
(b) stipulate a minimum threshold for local production and content; and
(c) stipulate the period of the designation.
(2) The designation and stipulation, as envisaged in subsection (1)(a) and (b), may only occur after the responsible Minister has—
(a) published the proposed designation, including the proposed minimum thresholds, for public comment for thirty days in the Gazette and on the departmental website and has notified the Minister of such publication;
(b) reviewed all comments received and provided responses to the comments in a schedule setting out the comments and responses;
(c) updated the proposed designation after considering the comments and proposals made during the public comment stage; and
(d) submitted the updated proposed designation to the Minister and considered any comments made by the Minister.
(3) In determining the threshold referred to subsection (1)(b), the responsible Minister must, in addition to considering the public comments and responses envisaged in subsection (2), consider—
(a) whether there are sufficient local manufacturers in the country who are capable to compete for the provision of goods designated for local production and content by determining—
(i) the number of existing manufacturers available in the country;
(ii) security of supply or capability to supply or the period that the designation is to be in effect;
(iii) the contribution of other role-players in the supply chain of the commodity or product including distributors and product agents;
(iv) the effect of local production and content on employment; and
(b) the economic impact on imported goods.
(4) The sufficient local manufacturers referred to in subsection (3)(a) must be determined by the responsible Minister but may not be less than three local manufacturers.
(5)(a) A procuring institution must, in the case of a designation in terms of subsection (1), advertise the invitation to bid 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.
(b) A bid that fails to meet the minimum stipulated threshold for local production and content is an unacceptable bid and must be disqualified.
(6)(a) If the required quantity of goods subject to a designation in terms of subsection (1), cannot be wholly sourced from local manufacturers or at the designated local content threshold for the period of the designation, or both, the procuring institution may submit a request for a waiver, in the form determined by the responsible Minister.
(b) The responsible Minister must within 30 days respond to the request for a waiver giving reasons for the decision, failing which approval will be deemed to be granted to the procuring institution that made the request.
(c) The responsible Minister may determine by notice in the Gazette and on its website that, until further notice, that procuring institutions are granted a waiver from procuring at the stipulated minimum thresholds for local production and content as envisaged in paragraph (a).
(7) If the responsible Minister does not grant the waiver referred to in subsection (6), and the procuring institution has sufficient evidence that the quantity of goods required cannot be wholly sourced from local manufacturers or at the designated local content threshold for the period of the designation, or both, the procuring institution—
(a) may advertise the invitation to bid without 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; and
(b) must within 14 days after the advertisement inform the responsible Minister accordingly and of the reasons.
(8) A procuring institution must, in addition to the measures stipulated in subsection (1) to (7), evaluate the bid in terms of the prescribed criteria.
(9) The responsible Minister—
(a) must monitor the impact of a designation in terms of subsection (1) and three years after the designation publish a report on its impact on the website of the department of that Minister; and
(b) may at least 12 months after that report is published, review the appropriateness of the designation and its threshold and period, and if outcome of the review so requires, amend or withdraw the designation and its threshold and period in terms of subsections (1) to (4).