Information on Origin and Local Content
Ensuring opportunities for domestic suppliers to compete on the basis of value for money advantages, such as those identified above, requires knowledge of the origin and local content of the goods or services offered. Unless specifically requested, this information is not likely to be included in offers to supply. Buyers may also find that consultants or other agents engaged to make recommendations on purchases, or brokers organising supply contracts, have no knowledge of origin or local content when they recommend or select a supplier.
Accordingly, government departments have been directed to:
- require origin and local content information in all offers to supply goods, and to obtain this information from any brokers before buying goods under contracts arranged by them. Where there is difficulty in identifying local content (e.g. in complex technical purchases) this requirement should be undertaken on a "best endeavours" basis.
Elements of local content will vary depending on the product, but may include all or some of the following:
- place of final manufacture;
- source of major components or materials;
- place of modification and assembly;
- origin and ownership of intellectual property;
- location of research and development effort;
- origin of design; and
- contribution to service and support back-up.
For any given purchase, buyers should use their judgement and discretion in assessing value for money advantages associated with these elements. Undue time and effort should not be wasted in attempting to assess local content factors in imports which clearly have little significant local value added, or in small one-off purchases.
Similar considerations should apply, as appropriate, in the purchasing of services.
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