Procurement – imports
The new codes have changed the way imports are handled. Previously certain imports were exempt but you could only reduce your preferential procurement by a maximum of 25% of your total procurement.
The final codes are more lenient: They give a long list of excluded imports, and amongst others are capital goods that do not have local production in this country.
Another clause, 18.104.22.168 even allows for the exclusion of goods that carry a brand different to the locally produced gods or services
and clause 22.214.171.124 allows for products with different specifications to the locally produced goods or services.
This implies that the importer of branded foreign goods will not be penalised in his procurement calculation because 95% of his procurement is from his principal overseas. In that case the importer will have very low eligible procurement, and should be able to achieve quite high points.
As an example many importers of electronic equipment should now be able to achieve good scores.
We have updated the procurement spreadsheet which is available as a free download to all registered users on this site.