Licence - scrap metal dealer

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What does the Scrap Metal Dealers Act 2013 cover? 

The Act replaces the Scrap Metal Dealers Act 1964, Vehicles (Crime) Act 2001 and The Motor Salvage Operators Regulations 2002.

The Act covers scrap metal dealing, scrap metal collecting or motor salvage operations. 

A scrap metal licence must be issued by us for:

  • a site licence or

  • a collectors licence

What is scrap metal?

 Scrap metal includes:

  • any old, waste or discarded metal or metallic material and
  • 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 scrap metal:

  • gold
  • silver
  • any alloy of which 2% or more by weight is attributable to gold or silver

Does the City Council have a Scrap Metal Dealers Policy?

Yes. Derby City Council Scrap Metal Dealers Policy can be found here.

What is a Site Licence?

A Site Licence authorises the licensee to carry on business at any site in the City of Derby. Your licence will allow you to have sites in areas shown within the black line on the Scrap Metal Dealers Area Map. A Site licence allows you to collect scrap metal in the course of your business anywhere in the country.

Please note these licences do not replace the Waste Carrier's Licence. To deal in and collect scrap in Derby you will be required to hold a licence issued by us and a Waste Carriers Licence that is issued by the Environment Agency.

What is a Collectors Licence?

A Collectors Licence authorises the licensee to carry on business as a mobile collector in the City of Derby. Your licence will allow you to collect in areas shown within the black line on the Scrap Metal Dealers Area Map.

If you wish to collect in another council area, you must contact the relevant council for an application form.

Every person working on a vehicle collecting scrap metal must be licensed unless they are properly employed by a business licensed as a site or hold a collector’s licence. A certified copy of that licence must be displayed in the vehicle.

Each business requires a licence. Self employed people are classed as a business. If you are self-employed and share a vehicle, each self-employed person will require a licence in their own right, in order to collect scrap metal.

Please note these licences do not replace the Waste Carrier's Licence. To deal in and collect scrap in Derby you will be required to hold a licence issued by us and a Waste Carriers Licence that is issued by the Environment Agency.

Do I need a licence to transport scrap metal?

If you transport scrap metal you will most likely require a waste carriers licence from the Environment Agency, who can be contacted on 08708 506506.

How do I apply for a new or renew a licence?

Complete the scrap metal dealers new and renewal application form and send with the relevant payment. See our Licensing current fees  and How to pay for General Licences. You will also need to apply for a Basic Disclosure Certificate from Disclosure Scotland.

Your DBS Disclosure is only valid for 3 months from the date that the Disclosure was issued by the Disclosure and Barring Service.

What are the fees?

See our Licensing current fees  and How to pay for General Licences

Can I buy scrap metal for cash?

A scrap metal dealer must not pay cash for scrap metal. Payment must only be by cheque or by an electronic transfer of funds (authorised by credit or debit card or otherwise).

Do I need to check the identification of the person selling/delivering the scrap metal to my site?

A scrap metal dealer must not receive scrap metal from a person without verifying the persons full name and address. The verification must be referenced to documents, data or other information verifying the persons full name and address.

Do I need to give my correct name and address to a scrap metal dealer?

A person who on delivering scrap metal to a scrap metal dealer, gives a false name and address is guilty of an offence and is liable to a fine.

What happens to my application if I don’t get a licence?

If representations are made against an application, then the application will be heard by our Licensing Committee. The hearing must be carried out within 20 working days ('working day' is any day other than a Saturday, Sunday or a Bank Holiday) from the end of the consultation period.

An appeal process is available to the applicant and those who made representations to an application, if they are not satisfied with the decision of the licensing committee.

We issue a notice of the decision to the applicant and anyone who made relevant representations. Appeals can be made against new, variation, renewal and the revocation of licence applications. 

Any appeal must be lodged at the local Magistrates' Court within 21 days of the date the applicant was informed of the committee's decision. 

How long does an application for a licence take?

The time taken to process an application depends on each individual application. The time period can range from a minimum of one month up to two months, but this could be longer if appeals are made following a committee hearing.

When an application is submitted, a 21 day consultation period will follow. This allows time for Consultees to give their responses to the application.

What are the relevant offences and relevant enforcement action that may affect obtaining a licence and my licence once it is granted?

Relevant Convictions/Enforcement Actions are listed on Relevant Offences – Scrap Metal Dealers

Can my licence be varied if the applicant or site manager(s) receive convictions?

If the applicant or any site manager has been convicted of a relevant offence we may include in the licence one or both of the following conditions:

  • that the dealer must not receive scrap metal except between 09:00 and 17:00 on any day
  • that all scrap metal received must be kept in the form in which it is received for a specified period, not exceeding 72 hours, beginning with the time it is received.

How can I contact the Consultees?

These authorities are able to comment on applications made under the Scrap Metal Dealers Act 2013.

Environment Agency

National Customer Contact Centre
PO Box 544
Rotherham
S60 1BY

Contact for advice:

HM Revenue and Customs (HMRC)

Northgate House
Agard Street
Derby
DE1 1RU

Derbyshire Constabulary

C/o Licensing Officer
St Mary's Wharf
Prime Parkway
Chester Green
Derby
DE1 3AB

Contact for advice:

Environmental Protection

Derby City Council
Environment Protection Team
The Council House
Corporation Street
Derby
DE1 2FS

Contact for advice:

Trading Standards

Derby City Council
Trading Standards Team
The Council House
Corporation Street
Derby
DE1 2FS

Contact for advice:

Licensing Authority

Derby City Council
Licensing Team
The Council House
Corporation Street
Derby
DE1 2FS
 

Will I need to apply for anything else for a Site Licence?

Yes. You may need other permissions to those required from us.

These must be obtained before you begin your licensed activities. Please note that this list gives a general guide and is not a complete list:

Planning permission

Check if you need planning permission before you make a licence application by emailing planning.applications@derby.gov.uk 

Waste Carriers Licence

You will may need to register with the Environment Agency for a Waste Carriers Licence.

Health and Safety Executive (HSE)

You may need to register with the Health and Safety Executive.

How long does my licence last?

Once granted, the licence will be valid for 3 years, unless it is revoked.

Once licensed, what are my responsibilities?

  • A scrap metal dealer who holds a site licence must display the licence at each site identified in the licence. The licence must be displayed in an area accessible to the public.
  • A scrap metal dealer who holds a collectors licence must display the licence in any vehicle that is being used in the course of the dealers business. The licence must be displayed in a manner which enables it easily to be read by a person outside the vehicle.

A scrap metal dealer who fails to comply with this section is guilty of an offence and is liable on summary conviction to a fine.

What records do I need to keep on receipt of metal?

The dealer must record the following information:

  • 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 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

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 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 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 collectors 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 3 years beginning with the day on which the metal is received or disposed of.

Does my licence allow me to have sites in other local authority areas?

A person may hold more than one licence issued by different local authorities but may not hold more than one licence issued by any one local authority.

Does my licence allow me to collect in other local authority areas?

Yes, but only if a site licence is held and the collections are undertaken in the course of that business. If you collect door to door, a licence is required for every local authority you collect in.

Can my licence be revoked?

We may revoke your licence if we are satisfied that:

  • the licensee does not carry on business at any of the sites identified on the licence
  • the site manager named in the licence does not act as site manager at any sites identified in the licence
  • we are no longer satisfied that the licensee is a suitable person to carry on business as a scrap metal dealer

Can the Police and or the Local Authority enter and inspect my site or vehicle?

A constable or an officer of the council may enter and inspect a licensed site at any reasonable  time on notice to the site manager.

A constable or an officer of the council may enter and inspect  a licensed site at any reasonable time, otherwise than on notice to the site manager if:

  • reasonable attempts to give such notice have been made and have failed or
  • entry to the site is reasonably required for the purpose of ascertaining whether the provisions of the Scrap Metal Dealers Act are being complied with or
  • the giving of notice would defeat that purpose

If your premises is a residential property then the police and ourselves need to request a warrant from a Justice of the Peace, if there are reasonable grounds for believing that entry to the premises is reasonably required for the purpose of:

  • securing compliance with the provision of the Act
  • ascertaining whether those provisions are being complied with

A constable may stop and search the vehicles(s) of mobile collectors with regard to the Scrap Metal Dealers Act 2013, but also wider considerations in relation to vehicle road worthiness, possession of insurance and correct tax status.

A constable or an officer of the Council can check if the correct licences are displayed in the vehicle.

Can my licence be transferred?

Site Licences can be transferred, but Collectors Licences cannot.

A licence cannot be transferred from one person to another person. A Site Licence can be transferred into a Collectors Licence and a Collectors Licence can be transferred into a Site Licence.

How can I convert my Site Licence into a Collectors Licence?

 Yes. You will need to write to us with conversion details and send with the relevant payment. See our Licensing current fees  and How to pay for General Licences

How can I convert my Collectors Licence into a Site Licence?

Yes. You will need to write to us with conversion details and send with the relevant payment. See our Licensing current fees  and How to pay for General Licences

What happens if circumstances change once I have been granted a Licence?

 An applicant for a Scrap Metal Licence or the renewal or variation of a licence, must notify us of any changes which materially affect the accuracy of the information which the applicant has provided to us in connection with the application:

  • a licensee who is not carrying on a business as a Scrap Metal Dealer in our area must notify us in writing of that fact within 28 days.
  • if a licensee carries on business under a trading name, the licensee must notify us in writing of any changes to that name within 28 days.

 If any of the following changes occur, you need to apply to vary your Licence in writing to us within 28 days of the changes occurring.  The options for this type of variation are as follows:

  • change of licence holder's details (name and/or address)
  • changes to the site(s) details (moving a site licence to another site, but not changing the site licence holder’s name or site manager)

What happens if the name of the site manager changes?

You will need to apply as soon as possible using the Scrap metal dealer variation site manager application form for either of the following options:

  • the change of a site manager(s) where a suitability test is required (change of site manager where they have previous relevant convictions or previous relevant enforcement action, the case may need to be determined by the Councils Licensing Committee)
  • where there are no previous convictions or previous relevant enforcement action then a suitability test will not be required.

A suitability test is based on the information from the basic disclosure certificate. See our Licensing current fees  and How to pay for General Licences

How can I get a replacement Licence?

You must write to us requesting a replacement licence, and send this with the relevant payment. See our Licensing current fees  and How to pay for General Licences

Can I add a new Scrap Metal Site to my licence?

Yes. You must write to us with address of the new site, and send this with the relevant payment within 28 days of any changes. See our Licensing current fees  and How to pay for General Licences

 

How can I update my licence if the applicant, including the correspondence address for the business or site manager changes their name or address?

You must write to us the details of the new address and send this with the relevant payment within 28 days of any changes. See our Licensing current fees  and How to pay for General Licences

Is my business exempt from the Scrap Metal Dealers Act?

If scrap metal is a by-product of your business you may be exempt from the need to be licensed, it will be necessary for you to prove the proportion of your business that consists of dealing in scrap metal. Examples of businesses that may be able to claim exemption are:

  • builders
  • plumbers
  • electricians
  • motor vehicle repair garages
  • engineering workshops
  • where scrap metal is recovered or produced as the result of the main purpose of the business

Do the cash for gold companies have to apply?

Gold, silver and any alloy of which 2% or more by weight is attributed to gold or silver is not deemed as scrap metal. You will not need to apply for a licence under the Scrap Metal Dealers Act 2013.

Data Protection

Please note that we may be required by law to disclose to the appropriate authorities, further information relating to applications and licences for the purposes of law enforcement and the prevention of fraud.

Public Register

The Environment Agency must maintain a public register of Scrap Metal Dealer Licences. Each entry in the register must record:

  • the name of the authority which issued the licence
  • the name of the licensee
  • any trading name of the licensee
  • the address of any site identified in the licence
  • the type of licence
  • the date on which the licence is due to expire

Opening times

Day Times
Monday 9.00am to 12.45pm
Tuesday 9.00am to 12.45pm
Wednesday 9.00am to 12.45pm
Thursday 9.00am to 12.45pm
Friday 9.00am to 12.45pm
Saturday Closed
Sunday Closed

Useful forms

Downloads

Contact details

Email:
Post address:
Licensing Team
Derby City Council
The Council House
Corporation Street
Derby
DE1 2FS
Phone: 01332 641951
Minicom: 01332 640666
Fax: 01332 643299
Licensing Team
Derby City Council
The Council House
Corporation Street
Derby
DE1 2FS