Scrap Metal Dealers Act 2013 Explained

scrap metal dealers act 2013 logoWe have provided this post for information regarding buying and selling of metal for recycling within the scrap metal industry.

The Scrap Metal Dealers Act 2013 is a parliamentary Act in the UK, passed on February 28th 2013, for amending the law concerning scrap metal dealers. The purpose, according to proponents, is to discourage metal thefts, which are often sold for cash. To prevent this, the Act now requires dealers to obtain details from the seller and put it on record by means of Photo ID and be payed use a recorded method instead of paying cash.

Repealing the Old Law

The Act effectively repeals the 1964 Scrap Metal Dealers Act and brings together motor salvage operators and scrap metal dealers under a single administration. Under the Act, local authorities will continue to function as the chief regulator, but authorities currently have the power to deny licence and revoke a dealer’s licence if circumstances warrant. In addition, local authorities and the police now have the power to inspect and enter the premises if required.

Definition of Scrap Metal

Under the Act, a scrap metal dealer is defined as an individual who engaged in the business of scrap metal, regardless whether the person is licensed or not. The definition of scrap metal has been extended to include any discarded, waste metal, and any assembly, article or product that has metal components. The Act further states that scrap metal refers to metallic products that are worn out, broken or no longer useful.

What the Act Means for Car Recycling Businesses

The Act stipulates that scrap metal dealers, including those in the car recycling industry, were eligible to apply for licence beginning October 1, 2013. If a current scrap metal dealer or car recycling operator failed to submit a licence application by October 16, 2013, they will be required to submit for an application. They will not be able to operate until their licence has been issued.

Car recycling business operators and scrap metal dealers that are not yet registered under the Vehicles (Crime) Act 2001 or the Scrap Metal Dealers Act 1964 can apply for a license, but they won’t be able to trade until such licence has been provided. Since 2013, penalties for buying metal for cash has been, in effect, and beginning on that date, police officers and local authorities had been accorded the right to inspect and enter sites.

The Act further stipulates that the licencing authority needs to be satisfied that the applicant has the means to deal in scrap metal. During this period, the authority may consult with other local authorities, the police or the environment agency. The authorities also reserve the right to investigate if the site manager or applicant has been convicted of any crime or if the person has been subjected to licence denial before.

During the licence application process, the authorities will determine if the applicant has previously been refused an environmental permit, or had their previous licence revoked. If the applicant has been proven capable and willing to comply with the rules of the Act, licence will be given. However, violations will result in penalties and possible revocation of the permit.

<<Back To Blog