Motor salvage, scrap metal and second hand dealers

Motor Salvage operators

Licence summary

The Scrap Metal Dealers Act 2013 came into force on the 1st October 2013 the Act repealed the Scrap Metal Dealers Act 1964 (and linked legislation) and Part 1 of Vehicles (Crime) Act 2001, which regulated Motor Salvage Operators, creating a revised regulatory regime for the scrap metal recycling and vehicle dismantling industries.

Eligibility Criteria

A person is a motor salvage operator if they:

  • recover for reuse or sale, in whole or in part, salvageable parts from motor vehicles and sell or otherwise dispose of the rest of the vehicle
  • mainly or wholly buy written-off vehicles and repair and resale the same vehicle
  • mainly or wholly sell or buy motor vehicles that are to be subject to any of the two activities above
  • carry out activities that fall under the latter two points above

Regulation Summary

There are two types of licence, one for a site and the other for a mobile collector (for those carrying on business otherwise than at a site).A site licence will be issued by the local authority in whose area a scrap metal site or motor salvage operator is situated and will require all of the sites at which the licensee carries on the business as a scrap metal dealer or motor salvage operator within the local authority area to be identified and a site manager to be named for each site. In doing so, they will be permitted to operate from those sites as a scrap metal dealer or motor salvage operator, including transporting scrap metal to and from those sites from any local authority area.

A mobile collector’s licence will authorise the licensee to operate as a mobile collector in the area of the issuing local authority, permitting them to collect any scrap metal as appropriate. This includes commercial as well as domestic scrap metal. The licence does not permit the collector to collect from any other local authority area; a separate licence would need to be obtained from each local authority in whose area the individual wished to collect in.

Scrap metal dealers licence

Licence summary

The Scrap Metal Dealers Act 2013 came into force on the 1st October 2013 the Act repealed the Scrap Metal Dealers Act 1964 (and linked legislation) and Part 1 of Vehicles (Crime) Act 2001, which regulated Motor Salvage Operators, creating a revised regulatory regime for the scrap metal recycling and vehicle dismantling industries.

Eligibility Criteria

The Act defines a “scrap metal dealer” as, a person who is for the time being carrying on business as a scrap metal dealer, whether or not authorised by a licence.

It further states that “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.”

Regulation Summary

There are two types of licence, one for a site and the other for a mobile collector (for thosecarrying on business otherwise than at a site).A site licence will be issued by the local authority in whose area a scrap metal site is situated and will require all of the sites at which the licensee carries on the business as a scrap metal dealer within the local authority area to be identified and a site manager to be named for each site. In doing so, they will be permitted to operate from those sites as a scrap metal dealer, including transporting scrap metal to and from those sites from any local authority area.

A mobile collector’s licence will authorise the licensee to operate as a mobile collector in the area of the issuing local authority, permitting them to collect any scrap metal as appropriate. This includes commercial as well as domestic scrap metal. The licence does not permit the collector to collect from any other local authority area; a separate licence would need to be obtained from each local authority in whose area the individual wished to collect in.

Application Evaluation Process

The licensing authority has to be satisfied that an applicant is a suitable person to carry on business as a scrap metal dealer. In considering suitability, the local authority may have regard to any relevant information.

Second hand dealers

To deal in secondhand goods, you may need a licence from, or to be registered with, your local authority.

You may be required to keep records of each transaction.

Request a basic DBS check

You can request a basic DBS check from gov.uk

Downloads

  • Motor Salvage and Scrap Metal
  • Second Hand Goods