Employers engaged in electrical manufacturing in the Republic of South Africa shall be eligible for membership. In order to promote the interest of local manufacturing the Association may grant membership to other local manufacturers meeting the criteria of local content as described below:
“Manufacturing” means the joint enterprise in which employers and employees are associated for the purpose of manufacturing and assembling of products where the local content amounts to at least fifty-per centum (50%) of factory cost. Factory cost is defined as:
Factory Cost: Direct Materials, Direct Labour and manufacturing Overheads (Selling, distribution and administration expenses are specifically excluded from manufacturing overheads). Refer G.A.A.P. statement AC108 for valuation.
Local content of Direct Material: Includes imported non-value added primary products e.g. steel strip, molding powders etc.
Manufacturing Overheads: These costs include all costs directly related to the conversion process, i.e. factory rental, plant and machinery depreciation, indirect labour, etc.
Primary Products are materials which require conversion/benefication in the manufacturing process in order to substantially change its form or fit for use.