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WHAT ARE THE RULES AROUND IMPORT EXCLUSIONS UNDER TMPS?



Under Statement 400 of the Amended General B-BBEE Codes of Good Practice, there are allowable exclusions when calculating Total Measured Procurement Spend (TMPS) and one of those items include Imports. However, there are certain rules that need to be considered.


Clause 6.5 under Statement 400 of the Amended General B-BBEE Codes of Good Practice states the following:


6.5 Imports: the following imported goods and services:

6.5.1 imported capital goods or components for value-added production in South Africa provided that:


6.5.1.1 there is no existing local production of such capital goods or components; and

6.5.1.2 importing those capital goods or components promotes further value-added production within South Africa;


6.5.2 imported goods and services other than those listed in paragraph 6.5.1 if there is no local production of those goods or services including, but not limited to, imported goods or services that –

6.5.2.1 carry a brand different to the locally produced goods or services; or

6.5.2.2 have different technical specifications to the locally produced goods or services.


6.5.3 The exclusion of imports listed under 6.5.2 are subject to them having developed and implemented an Enterprise Development and Supplier Development plan for imported goods and services. This plan should include:


6.5.3.1 Clear objectives

6.5.3.2 Priority interventions

6.5.3.3 Key performance indicators; and

6.5.3.4 A concise implementation plan with clearly articulated milestones


6.5.4 The Department of Trade and Industry will from time to time consult with the industry and issue practice notes with regard to the provisions on import exclusion.


Enterprise & Supplier Development Services are available to assist Members meeting the requirements for Import Exclusions.

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