The Scrap Metal Dealers Act 2013 came into force on 1 October 2013. The Act repealed the Scrap Metal Dealers Act 1964 and consolidated scrap metal dealers & motor salvage operators under one licensing regime.
The Act defines a “scrap metal dealer” as a person who is for the time being carrying on business as a scrap metal dealer, whether or not authorised by a licence.
It further states that “scrap metal” includes:
- Any old, waste or discarded metal or metallic material; and
- Any product, article or assembly which is made from or contains metal and is broken, worn out or regarded by its last holder as having reached the end of its useful life.
The following is not considered to be “scrap metal”:
- Gold;
- Silver; and
- Any alloy of which 2 per cent or more by weight is attributable to gold or silver.
Section 1 of the Act requires that a scrap metal dealer obtains a licence in order to carry on business as a scrap metal dealer. It is an offence to carry on a business as a scrap metal dealer in breach of the requirement to hold a licence. This offence is punishable on summary conviction with a fine not exceeding level 5 on the standard scale.
Types of Licence
There are two types of licence, one for a site and the other for a mobile collector (for those carrying on business otherwise than at a site).
A site licence lets you buy and sell scrap metal from a fixed location within the council area. Each site will have a nominated Site Manager included on the Licence.
All the sites where a licensee carries on business as a scrap metal dealer have to be identified, and a site manager has to be named for each site. This licence allows the licensee to transport scrap metal to and from those sites from any local authority area.
A collector’s licence allows you to travel within the council area to collect scrap metal. You may not take this metal back to a site that you run within the council area in order to sell it.
This allows the licensee to operate as a collector in the area of the issuing local authority. It does not allow the collector to operate in any other local authority area, so a separate licence has to be obtained from each council the collector wishes to operate in. The licence does not authorise the licensee to operate a site; to do so they will need a site licence from the relevant local authority.
A dealer can only hold one type of licence in any one local authority area. You have to decide whether they are going to have a site or a mobile licence in any one area. You cannot hold both a site and mobile collector’s licence from the same council.
Cash Payments
The ban on paying cash for scrap metal came into force on 1 October 2013.
Applications
For your application to be considered valid the following points must be applied:
- The application must be fully completed. Where a question does not apply it must be marked as ‘not applicable’;
- Your application must include a basic disclosure certificate (less than three months old),
- An existing disclosure certificate will only be accepted if it is less than three months old;
- You will need to complete a tax check with HM Revenue and Customs (HMRC) when you renew or apply for a new licence
- Your application must also be accompanied by a relevant fee
If you do not satisfy any of these conditions your application will be returned.
Consideration of your Application
We will only issue a licence once we are satisfied that you are a suitable person to carry on business as a scrap metal dealer.
In the case of a partnership this means assessing the suitability of each of the partners in the partnership, while in the case of a company it means assessing the suitability of any directors, company secretaries or shadow directors.
You will be required to provide a Basic Disclosure certificate with the application form for each of the above as is relevant to their circumstances (as well as for each of the proposed Site Managers). This is to enable us to determine whether or not any person(s) proposed have a relevant conviction (details of which will be released in due course by the Home Office). Refusing to provide a Basic Disclosure certificate would be grounds under paragraph 4(2) of Schedule 1 of the 2013 Act for the local authority to decline to proceed with the application.
You can apply for a disclosure certificate at: https://www.gov.uk/request-copy-criminal-record
In assessing an applicant’s suitability the council can consider any information it considers relevant.
Applicants’ behaviour in the operation of their business, such as the fact they have been operating for a considerable period of time without planning permission for their site, or that they are not registered with the Information Commissioner’s Office (ICO) under the Data Protection Act, could be factors that are considered.
Frequently asked questions
Do I need a Licence to carry on as a scrap metal dealer?
Yes. A person cannot carry on business as a scrap metal dealer unless authorised by a Licence issued under the Act.
A person who carries on business as a scrap metal dealer or motor salvage operator without consent is guilty of an offence and is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
What is the meaning of “carrying on a business as a scrap metal dealer”?
A person carries on business as a scrap metal dealer if they:
- Carry on a business which consists wholly or partly in buying or selling scrap metal, whether or not the metal is sold in the form in which it was bought, or
- Carry on business as a motor salvage operator (so far as that does not fall within paragraph (a)).
For the purposes of (a) if a person sells scrap metal only as a by-product of manufacturing articles or as surplus materials they do not require a consent.
For the purposes of (b) a person carries on business as a motor salvage operator if the business consists of:
- (a) Wholly or partly in recovering salvageable parts from motor vehicles for re- use or sale and subsequently selling or otherwise disposing of the rest of the vehicle for scrap,
- (b) Wholly or mainly in buying written-off vehicles and subsequently repairing and reselling them,
- (c) Wholly or mainly in buying or selling motor vehicles which are to be the subject (whether immediately or on a subsequent re-sale) of any of the activities mentioned in paragraphs (a) and (b), or
- (d) Wholly or mainly in activities falling within paragraphs (b) and (c).
A “scrap metal dealer” is a person who carries on the business as a scrap metal dealer, whether or not authorised by a licence.
What is the definition of scrap metal?
“Scrap metal” includes:
- Any old, waste or discarded metal or metallic material, and
- Any product, article or assembly which is made from or contains metal and is broken, worn out or regarded by its last holder as having reached the end of its useful life.
But the following are not to be regarded as scrap metal:
- Gold,
- Silver, and
- Any alloy of which 2 per cent or more by weight is attributable to gold or silver.
Are there different types of Licence available?
Yes. There are two types of Licence, one for a site and the other for a mobile collector (for those carrying on business otherwise than at a site).
A Site Licence which lets you buy and sell scrap metal from a fixed location within the council area. Each site will have a nominated Site Manager included on the Licence. Your site licence with also allow you to collect scrap metal by arrangement in other local authority areas.
It is our current opinion that you are able to undertake out door to door canvassing within the administrative boundary of Plymouth but not in other council areas. You will require a collector’s licence from each district where you wish to undertake this activity.
A Collector’s Licence allows you to travel within the council area of issue to collect scrap metal.
You may only apply for one type of Licence in each council area, but you can apply to include multiple sites in that area on the one Licence.
What do I have to submit with my application form?
The Act states that a council cannot issue a Licence unless it is satisfied that the applicant is a suitable person to carry on the business of a scrap metal dealer.
In the case of a partnership this means assessing the suitability of each of the partners in the partnership, while in the case of a company it means assessing the suitability of any directors, company secretaries or shadow directors.
Therefore as part of the application process you will have to provide a Basic Disclosure certificate (available via www.gov.uk/request-copy-criminal-record) with the application form for each of the above as is relevant to your circumstances (as well as supplying one for each of the proposed Site Managers). This is to enable us to determine whether or not any person(s) proposed have a relevant conviction. Refusing to provide a Basic Disclosure certificate would be grounds for the Council to refuse the application on the grounds of suitability.
A Certificate must be no more than three months old and we will return these to applicants once we have dealt with them.
In assessing an applicant’s suitability the council can consider any information it considers relevant.
Applicants’ behaviour in the operation of their business, such as the fact they have been operating for a considerable period of time without planning permission for their site, or that
they are not registered with the Information Commissioner’s Office (ICO) under the Data Protection Act, are be factors that could are considered.
Is there a fee payable for a Licence?
Yes. The fee will allow local authorities to recover the costs arising from administering and seeking compliance with the regime. The current fee is available via the Plymouth City Council website.
What happens if the council proposes to refuse my Licence?
We will notify you in writing that we are proposing to refuse your application giving details of how to appeal.
We will give you at least 14 days in which to make an appeal by giving representations in writing or how you may request to make oral representations at a meeting. We will consider written representations or arrange for oral representations before the Designated Cabinet Member.
Following your written representations, or oral representations given to the Designated Cabinet Member if we still decide to refuse your application, we will give a written notice of the decision to refuse and the reasons for doing so. You may then appeal this decision to the Magistrates Court within 21 days.
Once granted how long does the Licence last for?
3 years and then the dealer must renew the Licence.
What happens if circumstances change once I’ve been granted a Licence?
Under the Act you are required to notify us of any changes which would materially affect the accuracy of the information you provided to us in the making of your original application, this has to be within 28 days of the changes occurring. You can then apply to vary your Licence (there will be a fee charged for this).
A variation application would be required for any of the following reasons:
- Change of licensee’s details (name or address).
- Change from a Site Licence to a Collector’s Licence or vice versa.
- Changes to the sites licensed (adding, removing or changing details).
- Change of Site Managers.
Should you cease to carry on the business of a scrap metal dealer you must also inform us of that fact within 28 days.
Do I need to display my Licence?
Yes. If you have a Site Licence you must ensure that a copy is displayed at each site identified in the Licence in a prominent place in an area accessible to the public.
If you have a Collector’s Licence you must ensure that a copy is displayed on any vehicle that is being used in the course of your business in a manner which enables it to be easily read by a person outside the vehicle. We will issue a licence and holder that you will be able to display in the front window of the vehicle.
Can I pay cash for scrap?
No. It is an offence under the Act to pay or received payment in cash for scrap metal. You can only pay via the below methods:
- By a cheque which not transferable, or
- By an electronic transfer of funds (authorised by credit or debit card or otherwise).
The Secretary of State may amend these provisions to permit other methods of payment in which case these Notes of Guidance will be updated accordingly.
In operating as a scrap metal dealer what records am I required to keep?
The Act states that a scrap metal dealer must record the following information:
- The description of the metal, including its type (or types if mixed), form, condition, weight and any marks identifying previous owners or other distinguishing features;
- The date and time of its receipt;
- If the metal is delivered in or on a vehicle, the registration number/mark of the vehicle;
- If the metal is received from a person, the full name and address of that person;
- If the dealer pays for the metal, the full name of the person who makes the payment acting for the dealer.
If the dealer receives the metal from a person, the dealer must keep a copy of any document which the dealer uses to verify the name or address of that person.
If the dealer pays for the metal by cheque, the dealer must keep a copy of the cheque. If the dealer pays for the metal by electronic transfer:
- The dealer must keep the receipt identifying the transfer, or
- If no receipt identifying the transfer was obtained, the dealer must record particulars identifying the transfer.
If a dealer disposes of scrap metal under a Site Licence they must record the following information:
- The description of the metal, including its type (or types if mixed), form and weight;
- The date and time of its disposal;
- If the disposal is to another person, the full name and address of that person;
- If the dealer receives payment for the metal (whether by way of sale or exchange), the price or other consideration received.
If a dealer disposes of scrap metal under a Collector’s Licence they must record the following information:
- The date and time of the disposal;
- If the disposal is to another person, the full name and address of that person.
The dealer must keep the information and other records mentioned above for a period of 3 years beginning with the day on which the metal is received or (as the case may be) disposed of.
A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
What forms of ID are acceptable?
In order to verify a person’s name and address you must supply sight of a document that bears the person’s full name, photograph and residential address.
The following document can be used:
- A valid United Kingdom passport; or
- A valid passport issued by an EEA state; or
- A valid Great Britain or Northern Ireland photo-card driving licence; or
- A valid UK biometric immigration document.
Where your residential address is not shown the following documents can be used provided that the document was issued not more than three months before the date that the application was received.
- A bank or building society statement;
- A credit or debit card statement;
- A council tax demand letter or statement; or
- A utility bill, but not a mobile telephone bill