Scrap Metal Licences

How to apply for a scrap metal licence

IN THIS ARTICLE

  • What is classed as Scrap Metal?
  • What is a Scrap Metal Licence?
  • What do I need in order to apply for a Licence?
  • Want to apply?

What is classed as Scrap Metal?

Scrap metal is classed as:

  • Any old, waste or discarded metal or metallic material
  • 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 regarded as scrap metal:

  • Gold
  • Silver
  • Any alloy of which 2 percent or more by weight is attributable to gold or silver

 

What is a Scrap Metal Licence?

The licence allows you to buy and sell scrap metal, or travel to collect scrap metal, in a certain area.

There are two types of Scrap Metal Licence:

  • A Site Licence - buy and sell scrap metal from a fixed location within the Borough
  • A Collector's Licence - travel within the Borough to collect scrap metal, but not to sell it.

You can apply for one type of licence per Authority which can include multiple sites in the Borough on that licence.

The licence lasts for three years from the issue date and then must be renewed.

 

What do I need in order to apply for a Licence?

The Scrap Metal Dealers Act 2013 states that we cannot issue a licence unless we are satisfied that you are 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 partner. When it comes to a company we assess the suitability of any directors, company secretaries or shadow directors. 

Please make sure you are able to provide us with the following: 

  • photographic ID (i.e. full driving licence (including paper part) or current passport; 

  • birth certificate; 

  • proof of address (must be less than 3 months old) i.e. utility bill or bank statement; 

  • certificate of good conduct for applicants that have been resident outside of the country for long periods, from the age of 10 years; 

  • where appropriate, documentation showing right to work (residents permits); 

  • relevant environmental permits/licence in force i.e. scrap metal dealers or motor salvage operators, waste carrier's permit; 

  • proof of bank account details that will be used for payments to suppliers; and 

  • a passport sized photograph. 

Please apply for Basic Disclosure Certificate (that is less than three months old).  Please see list of responsible organisations who provide basic check services.

  • Site Managers - Each Site Manager will need to fill out the Basic Disclosure certificate
  • Applying on behalf of a partnership - Each partner will need to fill out the Basic Disclosure certificate
  • Applying on behalf of a company - Directors, company secretaries and/or shadow directors will need to fill out the Basic Disclosure certificate

Please then pay the appropriate fee as shown on our Licensing Fees and Charges

 

Want to apply?

Apply now 

 

What happens if my application is not successful?

Where refusal occurs we will give the applicant notice to set out what the authority proposes to do, reasons why, and then we will give the applicant the opportunity to make representations/inform the authority they wish to make representations, in no less than 14 days.  

The authority may refuse the application, if: (a) within the period specified in the notice, the applicant informs authority they do not wish to make representations or (b) the period of 14 days expires with applicant making no representations, nor telling us they wish to do so.  

If within the period specified in notice, applicant informs authority they wish to make representations, the authority (a) must allow applicant a further reasonable period to make representations and (b) may refuse the application if applicant fails to make representations within that period.  

If the applicant makes representations, the authority must consider them (including oral representations.)  

If the representations are oral, the Miscellaneous Licensing Sub-Committee can be arranged to hear these.  

Should the Sub-Committee formally refuse the licence the applicant may then appeal to the Magistrates' Court, within 21 days.  

Appeals are made straight to magistrate's court, if the licence still refused after representations. Time period is 21 days beginning on day which notice decision was given. Applicants can appeal against the refusal of application.  

If my application is successful, do I need to display my Licence?

If you have a Site Licence you have to display it at each site listed in on the Licence and display it in a prominent place that can been seen by the public. 

If you have a Collector's Licence you must display it on any vehicle that is being used to collect scrap. The Licence should also be visible in a place where a person outside of the vehicle can clearly see it.  

What happens if my circumstances have now changed?

Under the act you have to tell us about anything that has changed from your first application and you must notify us within 28 days of the changes happening. You can then apply to vary your Licence but bear in mind there is a charge for this (currently £100). 

The options for a variation are: 

  • Change of licensee's details (name and address). 

  • Change from a Site Licence to a Collector's Licence (or vice versa.) 

  • Changes to the site licensed (adding, removing or changing details). 

  • Change of Site Managers. 

You also need to tell us if you have stopped dealing in scrap metal. 

Let us know within 28 days of any changes.

 

Can I pay cash for scrap?

It is an offence to pay cash for scrap.  Payments can be made by cheque or via electronic transfer (including credit/debit card).

 

Do I need to keep any records as a scrap metal dealer?

The Act states that you need to keep the following: 

  • a 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; 

  • the registration mark of the vehicle (if the metal is delivered in a vehicle); 

  • the full name and address of the person (if the metal is delivered by a person); 

  • a copy of any document you use to verify the name or address of that person (if the metal is delivered by a person); 

  • the full name of the person who makes the payment on behalf of the dealer (if you pay for the metal) 

  • a copy of the cheque 

If the dealer pays for the metal by electronic transfer: 

  • You must keep the receipt identifying the transfer 

  • If you were unable to obtain a receipt you must record the details to identify the transfer. 

If you dispose of scrap metal under a Site Licence you must record the following: 

  • a description of the metal, including its type (or types if mixed), form and weight; 

  • the date and time of its disposal; 

  • the full name and address of the person (if the disposal is to another person); 

  • If the dealer receives payment the price or whatever was received/exchanged (if you received payment for the metal) 

If you dispose of scrap metal under a Collector’s Licence, then you must keep the following information: 

  • the date and time of the disposal 

  • the full name and address of the person (if the disposal is to another person); 

These records need to be kept for three years, beginning on the day the metal is received or disposed of. 

If you are found guilty of an offence relating to Scrap Metal then you could be liable to a fine on summary conviction not exceeding level 5 on the standard scale. 

For full details about Scrap Metal Licences, please visit the Legislation website

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