Scrap Metal Dealers Act 2013

Scrap Metal Dealers Act 2013 overview

The Scrap Metal Dealers Act 2013 came into force on October 1st 2013, which intends to bring about a greater degree of control of scrap metal movement in the UK and supports legitimate dealers whilst providing powers to deal with unscrupulous operators.

The Act requires that all persons carrying on a business as a scrap metal dealer must be licenced by 1st December 2013. They must apply to all Local Authorities in whose area they conduct business, with a failure to be licensed being an offence.

There are two types of licence for which the fee for is:

• a site licence £377
• a collectors licence £194

Fees are set by each local authority, so they do vary but are based upon the anticipated costs of running the licensing regime. Each licence lasts for three years.

The Act gives Winchester City Council powers to approve a licence depending on the suitability of the applicant. Winchester City Council can also refuse or revoke a licence depending on various considerations identified within the Act.

Once issued a site licence must be displayed in a prominent position either on the premises, or for a collectors licence on the vehicle used for the collection of scrap.

The Act also brings into force three important elements which must be adhered to by the scrap metal dealer:

• Verification of the supplier’s identity
• Scrap can no longer be bought for cash
• Records of scrap bought or disposed of must be kept

Scrap metal dealers cannot now receive scrap without confirming and keeping copies of the identity of the supplier who must provide their full name and address, evidenced by providing separate documentation.

A dealer can now only buy scrap using a non transferable cheque or by the electronic transfer of funds. Copies of all cheques must be kept.

The scrap metal dealer must also keep detailed records of all suppliers, persons to whom they sell to, a detailed log of the metal itself and copies of any payments received. Records must be kept in a manner which allows the information and the scrap metal to which it relates to be readily identified by reference to each other. All records must be kept for a minimum of 3 years from the date that the metal was received or disposed of.

Full information of the records that must be kept, together with the letter sent to all Scrap Metal Dealers and the associated application form, can be found by clicking on the links at the bottom of the page. Additional guidance from the Home Office, including when such licenses may be required can be downloaded from the bottom of this page.

What is Scrap Metal?

Scrap Metal is defined as:

'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 only exemption to this is gold and silver, or any alloy which is 2% or more by weight attributable gold or silver.

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. Alternatively you can access their web pages for further information.

Do I have any relevant convictions?

In considering whether an application is suitable to hold a Scrap Metal Dealers Licence, Winchester City Council will consider whether they have any ‘relevant’ convictions. The Scrap Metal Dealers Act (Prescribed Relevant Offences and Relevant Enforcement Act) Regulations 2013 stipulated what we as the Licensing Authority must consider.

How do I apply for a Scrap Metal Dealers Licence?

You can apply for a Scrap Metal Dealers Licence by completing and returning the application form below.

In support of your application you must also submit the following documentation:

1. Documentary proof of your identity i.e. a copy of your passport. Should you not have a passport, contact Winchester City Council for confirmation of other photo ID deemed acceptable.

2. A copy of a recent (within three months) DBS check from the Disclosure and Barring Service, previously known as a CRB Check. Advice on how to go about obtaining a DBS check can be found on line.

3. The appropriate fee (made payable to WInchester City Council):

  • Site licence £377
  • Collectors licence £194

How do I pay for my licence?

Licences can be paid for by one of the following means (on line payment curently not available):

  • A cheque made payable to Winchester City Council;
  • By credit or debit card, by calling the Business Support Team on 01962 840222 ext 2172.

Do I need a collectors or site licence?

There is currently some debate regarding the differentiation between the need for a site or collectors licence. This has arisen as a site license is only needed per site from which you operate, whilst a collectors licence is needed from each local authority in which you operate. This can be more expensive if collecting from multiple local authorities’ areas.

Currently (this is subject to change pending future guidance/case law) we consider that a site licence can be applied for any relevant address and does not mean there has to have scrap actually present. If you operate from your home address this could potentially be considered for a site licence. However you will need to ensure you have the appropriate waste management and planning permissions in place.

However a site license only allows you to collect to and from the site and therefore would apply only to prearranged visits to specified addresses to collect scrap. If you are intending to visit an area unannounced to locate and buy potential scrap then you will need a collectors licence. A map of Hampshire is included to download at the bottom of this page to show which local authorities you will need to contact locally depending on the area proposed.