Scrap Metal Dealers
The Scrap Metal Dealers Act 2013 requires all scrap metal dealers to hold a licence with their local authority.
Scrap metal includes:
- 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
Scrap metal does not include:
- any alloy of which 2% or more by weight is attributable to gold or silver
The new Act gives Local Authorities more powers of control, for example refusal of a licence or revocation of a licence if the dealer is considered 'unsuitable', or the operators are not abiding to the legislative requirements set out in their application. The Police and Local Authority now have powers of entry for inspection of scrap metal premises.
Main requirements of the Act
- Motor Salvage Operators are now included;
- There is now a requirement for all metal dealers to complete appropriate applications and disclosures and satisfy their local authority that they are genuine traders;
- All applicants of the licence must now apply for a Basic Disclosure Certificate. Applications can be made online through Disclosure Scotland. All named people on the application form must apply and provide the Council with a certificate; this would include the site manager and director;
- All sellers of metal must provide ID at point of sale which is recorded and retained by the scrap metal dealer. This may be inspected by the Police and local authority at any time;
- Cash must no longer be given as payment for scrap metals. Sellers must be paid by BACS or cheque (or another electronic traceable method). This will now apply to all collectors of scrap metal;
- There are two types of licence: a Site Licence and a Collector’s Licence. You cannot hold both a site and collector's licence issued by the same council at the same time.
Licences can be issued to an individual, a partnership or a company and are valid for 3 years.