Scrap Metal Dealer Licence

Page updated on: 24/11/2023

To operate as a scrap metal dealer or collector in Carmarthenshire 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.

There are two types of licence:

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, as the licensee, intend to carry out business as a scrap metal dealer. A site manager must also to be named for each site.
  • You will require a site licence to be able to take parts off vehicles to sell or to use to repair other vehicles.

Mobile Collector's licence:

  • A mobile collector's licence issued by us will authorise you as 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.
  • You will need a Mobile Collectors licence to transport end of life vehicles.

You can only hold one type of licence (Site Licence or Collectors Licence), which will last for 3 years. The expiry date will be shown on your licence.

You will also need to obtain a Waste Carriers licence from Natural Resources Wales to be able to collect scrap metal.

There is no restriction as to the location where you may transport, weigh in or sell your metals.

In summary, the Act defines a ‘scrap metal dealer’ as a person who is carrying on a business as a scrap metal dealer, whether 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 are not considered to be scrap metal:

  • Gold,
  • Silver
  • 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 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, sold, exchanged or disposed by you in the course of your business. This includes:

  • The type of metal being purchased
  • The time and date of the transaction
  • Personal information of the seller
  • Who is acting on behalf of the dealer
  • Proof of the non-cash transaction

You cannot use cash to buy and sell scrap metal as the Scrap Metal Dealers Act 2013 Legislation doesn’t allow the use of cash in the industry.

We, and the police, have been given powers to enter and inspect premises. 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 licence
  • Any previous refusal for an environment permit or registration
  • Any previous revocation of a scrap metal licence
  • 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.

The Scrap Metal Dealers Act 2013 came into force on October 1, 2013. This Act covers both 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.

Before applying for a licence you must:

The application will take between 1 - 2 weeks to process. You must send all documentation together with the application or we can't process it.

You must renew your Mobile Collectors and Site Licence every three years. You should contact us at least two months before your licence expires so that it gives us time to process your renewal application.

If you are applying for a Mobile Collectors Licence: Once the application has been completed we will send you a Collectors Licence and two ‘Registered Scrap Metal Dealers Record Books’. The records must be kept for two years beginning from the day the last entry was made in the book. 

If you require more Scrap Metal Dealers Record Books from us you can call us on 01267 234567. The books cost £5 each.

Application Form     Consent Form

Application Site Licence Mobile Collectors Licence
New £380 £260
Renewal £320 £260
Variation £60 £60

The following information will help us to identify the unlicensed dealer or collector:

  • Vehicle registration numbers
  • Photos
  • Any known addresses the dealer is operating from
  • Contact telephone numbers
  • Adverts, any links to social media

To report an unlicensed dealer or collector anonymously you can call the Contact Centre on 01267 234567 or email us at

You do not have to provide your details, but it will help the investigating officer if you can be contacted as we might need more information. Any details provided are confidential.