The Act requires those persons and businesses involved in the buying or selling of scrap metal or motor salvage to be licensed by the local authority.
There are two licences depending on what business the dealer undertakes:
A site licence is required for businesses that take in scrap metal or vehicles and either store scrap metal for sale or future sale or process it. A site manager is required to be named for each site. The licensee is then permitted to operate from from the site as a scrap metal dealer, including transporting to and from the sites from any local authority area
A collector’s licence for those that have a business of collecting scrap, for example door to door or from business and then sell it on scrap or motor salvage yards. A collector’s licence only authorises the licensee to operate as a mobile collector in the area of the issuing local authority. If a mobile collector operates within more than one local authority’s district, a licence will be required for each authority they operate in.
You must not receive scrap metal from a person without verifying their name and address.
You must not buy scrap metal for cash.
A site licence must be displayed in a prominent place, accessible to the public, at each site identified in the licence.
A mobile collector’s licence must be displayed on any vehicle that is being used in the course of the business and can be easily read by a person outside the vehicle.
You must keep a record of all scrap metal you receive including:
- A description including type, form, condition, weight, any marks identifying previous owners or distinguishing features
- The date and time
- The registration mark of the vehicle it was delivered in or on
- The full name and address of the person received from
- The full name of the person who makes the payment acting for the dealer
You must keep a record of all scrap metal you dispose of including:
- A description including type, form and weight (site licence holders only)
- The date and time
- The full name and address of the person disposed to
- If payment is made (by sale or exchange), the price of other consideration received (site licence holders only)
How to apply
You can request an application form online, download the form or email: firstname.lastname@example.org.
The licence requires a basic disclosure as part of the application process. Information on how to apply for a basic disclosure can be found on GOV.UK.
Anyone who carries out business as a scrap metal dealer without a licence may be liable on conviction to a maximum fine of £5000.