Scrap metal dealers licence | South Norfolk Council

Scrap metal dealers licence

The Scrap Metal Dealers Act 2013 requires scrap metal dealers and motor salvage operators to:

  • Have a scrap metal dealers licence 
  • Verify the name and address of any person from which they receive scrap metal
  • Not buy scrap metal for cash
  • Keep records of all scrap metal received or disposed of.

Who needs a scrap metal dealers licence 

Any persons collecting, buying or selling scrap metal need to have a scrap metal dealers licence.

There are two types of licences:

  • A site licence - this is required by an operator who has a site or sites in a council area. It allows the operator to collect scrap from any local authority area in England and Wales. The cost of a site licence is £255.00.
  • A collector licence - this is required by anyone collecting scrap in a council area that does not hold a site licence. The licence applies to South Norfolk Council's area only. If you wish to collect scrap metal from another area you will need another licence from the relevant council. The cost of a collectors licence is £117.00.

Both licences last for three years. You cannot hold the two different types of licence in one council area.

Applicants must complete a scrap metal dealers licence application form. We also require a basic disclosure (for all directors if applying as a limited company, or partners in a business or sole traders). For collectors only a passport sized photograph is also required.

Basic Disclosure Certificates can be applied for online or you can call Disclosure Scotland on 0870 609 6996 for information about other ways of applying.

Scrap metal dealers must not receive scrap metal from a person without verifying their name and address by reference to documents or other information as set out in The Scrap Metal Dealers Act (Prescribed documents and information for verification of name and address) Regulations 2013, which are as follows:

  • One of the following documents which bears the person’s full name, photograph and residential address:
    • Valid United Kingdom passport.
    • Valid passport issued by an European Economic Area (EEA) state.
    • Valid Great Britain or Northern Ireland photo-card driving licence.
    • Valid UK biometric immigration document, issued in accordance with regulations made under section 5 of the UK Borders Act 2007.
  • Or, one of the documents listed below which bears the person’s full name, photograph and date of birth:
    • Valid United Kingdom passport.
    • Valid passport issued by an EEA state.
    • Valid Great Britain or Northern Ireland photo-card driving licence.
    • Valid UK biometric immigration document, issued in accordance with regulations made under section 5 of the UK Borders Act 2007.
  • And one of the supporting documents listed below which bears the person’s full name and residential address that is not more than three months old:
    • Bank or building society statement
    • Credit or debit card statement
    • Council tax demand letter or statement
    • Utility bill, but not a mobile telephone bill.

Cash payments cannot be used by any scrap metal dealer to buy scrap metal under any circumstances.

Cheque payments are acceptable but this is limited to non-transferable cheques (“crossed cheques”), which are payable to a named individual(s) or firm and not made out to cash. However, the Act provides a clear focus on electronic transfers of money. This means that non-paper forms of payment such as direct debit, direct credits, BACS payments, faster payments, standing orders, credit transfers, online, phone and mobile banking are all acceptable forms of payment within the legislation.

These methods of payment all provide a record of the transaction from the payer’s account to the payee’s account.

The 2013 Act requires any scrap metal dealer to record the following information regarding any scrap metal purchase or disposal and retain the record for three years.

Records to be kept for metal received 

  • The 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 requirement to link recorded descriptions to the scrap metal to which they relate is intended to be proportionate and it may not be possible to go into the same level of detail for larger deliveries. If the scrap is (for example) one washing machine, it would be sensible to say so rather than use a more generic term. The records should contain sufficient identification detail to ensure there is no intention to obscure the identity and type of metal being processed
  • The date and time of its receipt
  • If the metal is delivered in or on a vehicle, the registration mark of the vehicle
  • If the metal is received from a person, the full name and address of that person
  • If the dealer pays for the metal, the full name of the person who makes the payment acting for the dealer
  • If the dealer receives the metal from a person, the dealer must keep a copy of any document which the dealer uses to verify the name or address of that person
  • If the dealer pays for the metal by cheque, the dealer must keep a copy of the cheque.
  • If the dealer pays for the metal by electronic transfer:
    • The dealer must keep the receipt identifying the transfer, or
    • If no receipt identifying the transfer was obtained, the dealer must record particulars identifying the transfer.

Records to be kept for metal disposed of 

  • Whether or not it is in the same form in which it was received
  • Whether or not the disposal is to another person
  • Whether or not the metal is dispatched from a site.

Where the disposal is in the course of business under a site licence, the dealer must record the following information:

  • The description of the metal, including its type (or types if mixed), form and weight
  • The date and time of its disposal
  • If the disposal is to another person, the full name and address of that person
  • If the dealer receives payment for the metal (whether by way of sale or exchange), the price or other consideration received.

Where the disposal is in the course of business under a collector’s licence, the dealer must record the following information:

  • The date and time of the disposal
  • If the disposal is to another person, the full name and address of that person.