East Suffolk Council
Scrap metal dealer licensing
Under the Scrap Metal Dealers Act 2013, those who deal in scrap metal require a licence. There are two types of licence – one for running a site and one for mobile collectors who do not operate from a site.
Who can apply?
Any ‘suitable person’ may apply for either licence. A ‘suitable person’ is assessed at the time of application as someone who does not have any previous, relevant convictions. All responsible persons within a company or partnership must be ‘suitable persons’.
A current Disclosure Barring Service Check, issued within the last six months will be required before any application can be processed. In addition, all Scrap Metal Collectors must hold an Upper Tier Waste Carriers registration from the Environment Agency. The registration number for this will be required at the time of the application.
If you intend to collect scrap metal in more than one local authority area, you must apply for a licence from each local authority. You should therefore contact each authority directly to obtain a copy of their application form.
Payment for Scrap metal
Can I buy scrap metal for cash?
No. Any holder of a licence, whether a site licence covering a scrap metal dealer or motor salvage operator, or mobile collector, can only pay for scrap by way of a cheque (which, under the Bills of Exchange Act 1881- is not transferable) or by electronic transfer of funds. This includes paying in kind, whether by goods or services. If cash is paid for scrap each of the following is guilty of an offence:
- The scrap metal dealer
- If the payment is made at a site, the site manager
- Any person who makes the payment acting for the dealer
However, it is a defence for the dealer and site manager to prove that they have made arrangements to ensure cash was not paid for scrap and that they had taken all reasonable steps to ensure the arrangements were complied with.
It is acknowledged that the electronic payments market is rapidly evolving with new products regularly entering the market.
Why can I not buy scrap metal with cash?
Payment methods which provide anonymous or near cash alternatives are not acceptable within the legislation.
Record keeping
What records does a dealer have to keep on receipt of scrap metal?
If a scrap metal dealer receives any scrap metal they must record:
- The description of the metal, including its type, form, condition, weight, marks identifying previous owners or other distinguishing features
- Date and time of the receipt
- If delivered on a vehicle, the registration mark of the vehicle
- Name and address of the individual if received from an individual
- Name of the person paying the supplier for the metal
- Copy of any document used to verify the name and address
- Copy of the cheque, if the supplier is paid by cheque
- Receipt identifying the electronic transfer if payment was by that method or, in the absence of a receipt, identifying particulars.
The above information must be retained in a way that can link it to the scrap metal it refers to and must be retained for three years.
Records must be recorded in a manner which allows the information and scrap metal to be easily identified by reference to each other. 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.
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 (see 12. below for acceptable forms of ID).
How do I verify the identity of suppliers selling scrap metal?
You must verify a person’s name and address, to verify the identity of suppliers selling scrap metal the scrap metal dealer must refer to either:
- A document which bears the person’s full name, photograph and residential address
- A document which bears the person’s full name, photograph and date of birth, and a supporting document which bears the person’s full name and residential address.
The documents that can be used to verify the identity are:
- A valid United Kingdom passport
- A valid passport issued by an EEA state
- A valid Great Britain or Northern Ireland photo-card driving licence a valid UK biometric immigration document, and
- A bank or building society statement; a credit or debit card statement;
- A council tax demand letter or statement; or
- A utility bill, but not a mobile telephone bill provided that the date on which the document in question was issued is not more than three months before the date when the scrap metal is received by the scrap metal dealer
What records do I need to keep on disposal of metal?
The dealer must record the following information:
- Whether or not it is in the same form which it was received
- Whether or not the disposal is to another person
- Whether or not the metal is dispatched from 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 disposal
- If the disposal is to another person, the full name and address of that person
- If the dealer receives the 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
The information must be recorded in a manner which allows the information and the scrap metal to which it relates to be readily identified by reference to each other. The dealer must keep the information and other records for a period of three years beginning with the day on which the metal is received.
Do I have to verify the identity of repeat suppliers every time I buy scrap metal?
No, whilst a scrap metal dealer must keep a copy of any document used to verify the name and address of the supplier, you can verify the name and address of repeat suppliers by referring to a copy of the document(s) retained in your records which were used to verify their name and address before, for example, documents supplied to you on the first transaction.
How do I verify the name and address of the supplier if the scrap metal has no obvious owner?
If you are a mobile collector and you pick up waste materials and old, broken, worn out or defaced articles have been left abandoned on the roadside there may be no obvious owner and therefore, it may not be possible for you to verify the name and address of the supplier.
However, as a mobile collector, you must record 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 and the date and time of its receipt. If a mobile collector collects scrap metal from a person, they will need to verify the name and address of that person. However, repeat recording of property as being 'found' and having no owner’s records to connect may indicate evasion of the mobile collector’s record keeping duties which may warrant further investigation.
The Vehicle Registration Mark for each vehicle used to collect scrap metal, must be registered with the Local Authority, and must display the licence plate as provided by the Local Authority at the time the application is granted.
Is planning permission required?
We recommend that you discuss your proposals with our planning team to determine whether a planning application is needed.
How long will it take for my application to be assessed?
Once your application has been received, an officer will contact you as soon as possible, and within 28 days. The amount of time taken to determine the application will range depending on a number of factors, such as whether the application is complete or if further information is required.
Will tacit consent apply?
No - a site must not be run without a licence and scrap metal must not be collected without a licence.
How do I apply?
How much does a licence cost?
| Site licence | Collector's licence | |
|---|---|---|
| New application | £454 | £265 |
| Variation | £185 | £102 |
| Renewal | £350 | £225 |
How long does a licence last?
Site licences and collector’s licences last for 3 years from the date they are issued.
What can I do if my licence application is refused?
You can apply to the Magistrates' Court if your application is refused.
Public register of licensed sites and collectors
The Environment Agency publishes a national register of site licences and collectors licences.
Renewal applications
From April 2022, those applying to renew their application, must provide a copy of their Tax Conditionality check. This can be obtained by visiting the Gov.uk website here- Complete a tax check for a taxi, private hire or scrap metal licence - GOV.UK (www.gov.uk)
You then must provide the 9 Character code on your application, at the time of applying for a renewal.