Scrap Metal Dealers
The Scrap Metal Dealers Act 2013 came into force on October 1, 2013. This Act repeals the Scrap Metal Dealers Act 1964 and consolidates scrap metal dealers and motor salvage operators under one licensing regime. We continue to act as the main regulator but the new Act gives more powers, such as refusing or revoking a licence if the dealer is considered unsuitable.
We, and the police, have been given powers to enter and inspect premises.
In summary, the Act defines a ‘scrap metal dealer’ as a person who is for the time being carrying on a 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:
- An alloy of which two per cent or more by weight is attributable to gold or silver
If you are a scrap metal dealer you must obtain a licence from us. Operating without the proper licence is an offence for which you are liable to prosecution and a fine up to £5,000.
As well as completing the application form, you must submit a basic disclosure certificate from Disclosure Scotland and the payment to cover the fee.
There are two types of licence, one for a ‘site’ and the other for a ‘collector’.
- Site licence: We will issue this if your site is located within Carmarthenshire. We need to know about all of the sites at which you (the licensee) intend to carry out business as a scrap metal dealer. A site manager must also to be named for each site.
- Mobile Collector's licence: A mobile collector's licence issued by us will authorise you (the licensee) to operate as a collector in Carmarthenshire only. If you intend to collect from any other local authority area you must obtain a separate licence from the relevant local authority.
There is no restriction as to the location where you may transport and sell your metals.
If you are a scrap metal dealer you must display a copy of your licence at all times:
- For site operators this must be in a prominent place in an area accessible to the public
- For mobile collectors, it must be in a place where it can be easily read by a person outside your vehicle
Failure to meet these requirements is a criminal offence.
The Act places a requirement on scrap metal dealers to verify the identity of the person you are receiving metal from, and their address. This verification must be done by reference to reliable documentation, such as a passport, driving licence and a bank or utility bill. It is an offence not to obtain and verify the seller's identity.
Records must be kept in respect of any scrap metal received by you in the course of your business. This includes:
- The type of metal being purchased
- The time/date of the transaction
- Personal information on the seller
- Who is acting on behalf of the dealer
- Proof of the non-cash transaction
The Act prohibits the payment of cash for metals.
As the licensing authority we have to be satisfied that you are a suitable person to carry out business as a scrap metal dealer.
In considering suitability, we must consult with:
- Any other local authority (if you are making an application to them too)
- Natural Resources Wales
- The police
We will assess the following criteria:
- Whether you or any site manager has been convicted of any ‘relevant offence’
- Whether you or any site manager has been the subject of any relevant enforcement action
- Any previous refusal for issue of or renewal of a scrap metal license
- Any previous refusal for an environment permit or registration
- Any previous revocation of a scrap metal license
- Whether you have demonstrated that there will be adequate procedures to comply with the Act
All of the above will apply to any director or any secretary of a company if you are not an individual.