SNC scrap metal dealers licence

The Scrap Metal Dealers Act 2013 (the Act) requires scrap metal dealers and motor salvage operators to:

• have a scrap metal dealers licence
• verify the name and address of any person from which they receive scrap metal
• not buy scrap metal for cash
• keep records of all scrap metal received or disposed of

Who needs a scrap metal dealers licence 

Any persons collecting, buying or selling scrap metal must have a scrap metal dealers licence.

There are two types of licence:

• a site licence - this is required by an operator who has a site or sites in a council area. It allows the operator to collect scrap from any local authority area in England and Wales
• a collector licence - this is required by anyone collecting scrap in a council area that does not hold a site licence. The licence applies to the specific council area only.

Where can I find out if someone has a scrap metal dealers licence

A register of all scrap metal dealers licensed under the Scrap Metal Dealers Act 2013 can be found on the public register held by the Environment Agency. 

Verifying the name and address of a scrap metal supplier

Scrap metal dealers must not receive scrap metal from a person without verifying their name and address by reference to documents or other information as set out in The Scrap Metal Dealers Act (prescribed documents and information for verification of name and address) Regulations 2013, which are as follows:

• one of the following documents which bears the person’s full name, photograph and residential address:
  • valid United Kingdom passport
  • valid passport issued by an European Economic Area (EEA) state
  • valid Great Britain or Northern Ireland photocard driving licence
  • valid UK biometric immigration document, issued in accordance with regulations made under section 5 of the UK Borders Act 2007
• or, one of the documents listed below which bears the person’s full name, photograph and date of birth:
  • valid United Kingdom passport
  • valid passport issued by an EEA state
  • valid Great Britain or Northern Ireland photocard driving licence
  • valid UK biometric immigration document, issued in accordance with regulations made under section 5 of the UK Borders Act 2007
• and one of the supporting documents listed below which bears the person’s full name and residential address that is not more than three months old:
  • bank or building society statement
  • credit or debit card statement
  • Council Tax demand letter or statement
  • utility bill, but not a mobile telephone bill

Offence of buying scrap metal for cash

Cash payments cannot be used by any scrap metal dealer to buy scrap metal under any circumstances.

Cheque payments are acceptable but this is limited to non-transferable cheques (“crossed cheques”), which are payable to a named individual(s) or firm and not made out to cash. However, the Act provides a clear focus on electronic transfers of money. This means that non-paper forms of payment such as Direct Debit, direct credits, Bacs payments, faster payments, standing orders, credit transfers, online, phone and mobile banking are all acceptable forms of payment within the legislation.

These methods of payment all provide a record of the transaction from the payer’s account to the payee’s account.