SARS published the new Preferential Procurement Policy on 23 March 2022


On 23 March 2022 a new document, SARS Preferential Procurement Policy, has been published. Find it Here

Information and Implications

The policy has been Developed to enable SARS to comply with section 217 (2) and (3) of the Constitution that makes it incumbent on organs of state to apply a system of preferential procurement and to do so in terms of national legislation (BBBE Act).

Context for beginners

The Preferential Procurement Policy Framework Act 5 of 2000 (PPPFA) regulates the procurement policy and framework of organs of state. Its purpose is to enhance the participation of Historically Disadvantaged Individuals (HDIs) and small, medium and micro enterprises (SMMEs) in the public-sector procurement system.

The draft Preferential Procurement Regulations, 2022 supports the PPFA and were published for public comment on 10 March 2022. The purpose of the Draft Regulations is to prescribe the threshold amounts in which the 80/20 and 90/10 preference point systems must be used, together with the formula to be applied.

Read more regarding the rationale for the Draft Preferential Procurement Regulations, 2022 Here.

SARS published their Preferential Procurement Policy to:

  • Customs will not be able to transmit electronic messages to the licensed facility in terms of the status of the consignment and
  • the CCD will be rejected.

Need assistance

Should you have any technical queries regarding the SARS Preferential Procurement Policy send an email to Taxtech@Saiba.Org.Za.

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