All those carrying on business as a scrap metal dealer must hold a scrap metal dealer's licence under the Scrap Metal Dealers Act 2013. In summary, this legislation provides the following:
- scrap metal dealers and motor salvage operators are both "scrap metal dealers"
- the licence application process includes consultation with the Police and Environment Agency.
The Scrap Metal Dealers Act 2013 defines scrap metal as:
- any old, waste or discarded metal or metallic material
- any product, article or assembly which is made from or contains metal and is broken, worn out or regarded by its last owner as having reached the end of its useful life.
There are 2 categories of licence:
- a site licence (may be for multiple sites within the council's area)
- a mobile collector's licence (separate licences are required for each council area where collections take place).
Both types of licence are valid for 3 years.
A "site" is any place occupied for the purposes of the scrap metal dealer's business; a site licence holder may collect scrap metal, but only by prior arrangement.
A mobile collector must not occupy a site for the purposes of their scrap metal business, but may collect scrap metal without prior arrangement.
All scrap metal dealers must keep comprehensive records of any scrap metal that they collect or dispose of, which must include among other things:
- a full description of metal along with the date and time it was received or collected
- if it was delivered in or on a vehicle, the registration mark of the vehicle
- if it was received from a person, their full name and address and a copy of the ID used to verify their identity
- if it's paid for by cheque, a copy of the cheque or if it's paid for by electronic transfer, either a receipt or other particulars identifying that transfer.
We have power to refuse or revoke licence or impose conditions where appropriate, subject to the right to make representations before refusal, revocation or the imposition of conditions (these are limited to times of operation and a requirement that metal will be kept in its original form for minimum of 72 hours)
A copy of the licence must be displayed at the site or on a mobile collector's vehicle where it can be read by the public.
Sellers must produce prescribed personal ID (photo ID) and proof of address at the point of sale. The dealer must keep a record of the documents produced.
Cash purchases of scrap metal are prohibited - payment must be by cheque or electronic transfer of funds. The only possible exception will be where a vehicle is driveable and has an MOT certificate or has genuine potential for repair.