Woking Borough Council Scrap Metal Act 2013: Frequently Asked Questions

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1 Woking Borough Council Scrap Metal Act 2013: Frequently Asked Questions 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. Who needs to apply for a licence? You will need to apply for a licence if you buy, sell or collect scrap metal as a business or you operate as a motor salvage operator. Local government will now be responsible for the licensing of scrap metal dealers & enforcement of the licensing regime alongside the Police What is the definition of a scrap metal dealer? No one can carry out the business of dealing in scrap metal unless they have a licence. A person carries on business as a scrap metal dealer if they: (a) carry on a business which consists wholly or partly in buying or selling scrap metal, whether or not the metal is sold in the form in which it was bought, or (b) carry on a business as a motor salvage operator. What is the definition of a mobile collector? Mobile collector means a person who: (a) carries on business as a scrap metal dealer but does not store collected metal on site, and (b) Regularly engages, in the course of that business, in collecting waste materials and old, broken, worn out or defaced articles by means of visits from door to door. Note that the Act makes reference to collecting waste material but does not make reference to payment. A mobile collector will need a licence to buy or sell any scrap metal collected. Even if the material is provided free of charge, a licence is required in order to sell it on. The definition of a scrap metal dealer includes any person who carries on a business which consists wholly or partly in buying or selling scrap metal When does it commence? The provisions of the Act came into force on 1st October 2013, and requires that all persons carrying on a business as a scrap metal dealer MUST be licensed by 1st December They must apply to all Local Authorities where they conduct business for a licence. Persons contacting Woking Borough Council prior to this date, have had their details recorded, as the council was not in the position to receive applications at that time. What is a deemed Licence? If you were already registered as a Scrap Metal Dealer or a licensed Motor Salvage Operator before the 1st October 2013 then as part of the transitional arrangements you had until 15th October 2013 to apply for the new Scrap Metal Dealers licence.

2 What types of licence are there? There are two types of licence: a site licence a collector s licence A site licence authorises you to carry on business at any site in the authority s area which is identified in the licence and must: Name the licensee; name the authority; identify all the sites in the authority s area at which the licensee is authorised to carry on business; name the site manager of each site; and state the date on which the licence expires. A site licence allows the licensee to transport scrap metal to and from those sites from any local authority area. It does NOT allow the licensee to collect scrap metal door to door. A collector s licence authorises the licensee to collect scrap door to door as a mobile collector in the authority s area and must: Name the licensee; name the authority; and state the date on which the licence expires. It does NOT allow the licensee to operate a scrap metal site A mobile collector's licence will cover any employees working for that business. If they are not employed directly by that mobile collector s business and are self-employed, they will need their own collector s licence even if they are collecting metal from the same van as a person who has a mobile collector s licence Can I apply for a site and collector s licence in the same local authority area? No, a dealer can only hold either a site licence OR a collector s licence in a local authority area, not both. If I apply for a collector s licence will it cover more than one local authority area? No, the applicant must apply for a collector s licence from each local authority in which they wish to operate. If I collect metal as part of my trade, do I need to register? Motor salvage operators Motor salvage operators will need to hold a scrap metal dealer s licence which replaces the need to separately register with the local council. The Act repeals Part 1 of the Vehicles (Crime) Act 2001 which is the requirement to register as a vehicle salvage operator. Producers of ferrous and non-ferrous metals Producers of ferrous and non ferrous metals purchase processed scrap metal as a raw material used in their manufacturing process. Whilst on a case by case basis this may meet the test of wholly or partly buying or selling scrap metal, the Act was never intended to extend beyond those who were expected to register under the Scrap Metal Dealers Act 1964 or the Vehicles (Crime) Act 2001 which this Act replaces. Therefore, the Government has advised Local Authorities that such companies are not required to comply with the licensing requirement. Agent, broker or trader A person that buys or sells scrap metal on paper without actually operating a scrap metal site carries on business as a scrap metal dealer and will require a licence. This person will carry out their business as a scrap metal dealer from premises and will need to hold a site licence as a site is any premises used in the course of carrying on business as a scrap metal dealer (whether or not metal is kept there) (section 22 (9)).

3 Skip Hire Company Skip hire companies may need a scrap metal dealer s licence. It will be a question of fact for a court to decide whether, under all the circumstances, the buying or selling of scrap metal forms the whole or part of the person s business, or alternatively, whether the buying or selling of scrap metal forms such a minimal part of their overall business dealings that the definition of scrap metal dealer in the Act is not made out. There are many factors a court may consider in reaching its judgment such as the proportion of the business related to scrap metal in terms of value or volume. If a skip hire company places skips only at businesses/demolition sites to process and sell on the scrap metal this may be considered to be the whole or part of their business and therefore require a licence. However, a company that only rents skips to households where recoverable scrap metal forms a minor part of the skip contents and the company s business that they may not require a licence. Tradespersons Tradespersons will not require a scrap metal dealer s licence if buying or selling scrap metal is an incidental function of their business (eg being a plumber or electrician). It will be a question of fact for a court to decide whether, under all the circumstances, the buying or selling of scrap metal forms the whole or part of the person s business, or alternatively, whether the buying or selling of scrap metal forms such a minimal part of their overall business dealings that the definition of scrap metal dealer in the Act is not made out. Vehicle collection companies If a scrap metal dealer (who is a motor salvage operator) holds a site licence and employs or sub-contracts a company to pick up cars on the company s behalf in the course of the business from that site the Government has indicted that it does not consider that they will need individual mobile collector s licences as this is not regularly engaging in collecting waste materials and old, broken, worn out or defaced articles by means of visits from door to door but pre-arranged appointments. If the vehicle is to be scrapped, the collection company will be committing an offence if they buy the vehicle for cash and do not verify the name and address of the supplier on behalf of the site licence holder. The scrap metal dealer will be responsible for ensuring that the vehicle collection company complies with these requirements. Do I need a waste carriers licence to apply for a collector s licence? Yes Do I need a permit to operate a site? Yes, you will need either a permit from the Environment Agency or an exemption to operate a site. What about companies applying for a licencei? In determining whether a company is suitable to carry on business as a scrap metal dealer, a local authority should have regard, in particular, to whether any of the following is a suitable person (a) any director of the company; (b) any secretary of the company; (c) any shadow director of the company (that is to say, any person in accordance with whose directions or instructions the directors of the company are accustomed to act).

4 What about partnerships? In determining whether a partnership is suitable to carry on business as a scrap metal dealer, a local authority is to have regard, in particular, to whether each of the partners is a suitable person. How long does a licence last for? A licence lasts for three years from the day it is issued. Does a scrap metal dealer have to notify the local authority if they cease trading? If a scrap metal dealer ceases trading they must notify the local authority within 28 days of doing so. Similarly if the trading name of the business changes, the local authority must be notified within 28 days. Do licences have to be displayed? A scrap metal dealer who holds a site licence must display a copy of the licence at each site identified in the licence, in a prominent place accessible to the public. A scrap metal dealer who holds a collector s licence must display a copy of the licence on any vehicle that is being used in the course of the dealers business, in a manner which enables it easily to be read by a person outside the vehicle. The licensee will also be issued with an identity badge which can be worn. What records do I have to keep? If a scrap metal dealer receives any scrap metal they must record: The description of the metal, including its type, form, condition, weight, marks identifying previous owners or other distinguishing features Date and time of the receipt Vehicle registration number of collecting vehicle Name and address of the supplier Name of the person paying the supplier for the metal Copy of any document used to verify the name and address Copy of the cheque, if the supplier is paid by this method. Receipt identifying the electronic transfer if payment was by that method, or, in the absence of a receipt, identifying particulars. How long to I need to retain the records? You must retain the records for three years. Failure to keep records as detailed above is an offence punishable by a fine on conviction. Do I have any relevant convictions? In considering whether an applicant is suitable to hold a Scrap Metal Dealers licence, the Council will consider whether they have any relevant convictions. They will need to obtain a Basic Disclosure Certificate from Disclosure Scotland ( must be less than 3 months old when presented to the Council). If you have any relevant convictions we may consult with the Police and Environment Agency. To assess your suitability to be issued with a licence, you may be asked to provide further proof of identity, address or any other relevant information

5 What are relevant offences? These relevant offences and enforcement action are prescribed by the Scrap Metal Dealers Act 2013 (Prescribed Relevant Offences and Relevant Enforcement Action) Regulations Any of the offences or the enforcement actions listed here must be declared in connection with an application and may affect the suitability of the applicant to hold a licence. Control of Pollution (Amendment) Act 1989: Sections 1, 5 or 7(3) Customs and Excise Management Act 1979: Section 170 (for environmental/metal theft related offences only) Environment Act 1995: Section 110(2) Environmental Permitting Regulations 2007: Regulation 38 Environmental Permitting Regulations 2010: Regulation 38 Environmental Protection Act 1990: Sections 33 and 34 Food and Environment Protection Act 1985: Section 9(1) Fraud Act 2006: Section 1 (for environmental/metal theft related offences only) Hazardous Waste (England and Wales) Regulations 2005 Hazardous Waste (Wales) Regulations 2005 Landfill (England and Wales) Regulations 2002 Legal Aid, Sentencing and Punishment of Offenders Act 2012: Section 146 Pollution Prevention and Control (England and Wales) Regulations 2000 Proceeds of Crime Act 2002: Sections 327, 328, 330, 331 & 332 (for environmental/metal theft related offences only) Producer Responsibility Obligations (Packaging Waste) Regulations 2007 Scrap Metal Dealers Act 1964 (for environmental/metal theft related offences only) Scrap Metal Dealers Act 2013 Theft Act 1968: Sections 1, 8, 9, 10, 11, 17, 18, 22 & 25 (for environmental/metal theft related offences only) Transfrontier Shipment of Waste Regulations 1994 Transfrontier Shipment of Waste Regulations 2007 Vehicles (Crime) Act 2001: Part 1 Waste Electrical and Electronic Equipment Regulations 2006 Waste (England and Wales) Regulations 2011: Regulation 42 Water Resources Act 1991: Section 85, 202 or 206 Relevant Enforcement Action (i.) the person has been charged with an offence specified in the Schedule to the Regulations [above], and criminal proceedings in respect of that offence have not yet concluded; or (ii.) An environmental permit granted in respect of the person under the Environmental Permitting (England and Wales) Regulations 2010 (1) has been revoked in whole, or partially revoked, to the extent that the permit no longer authorises the recovery of metal Do I need to seek independent legal advice? If you any relevant offences or do not understand the legislation you are advised to seek your own independent legal advice.

6 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. To support of your application you must also submit the following documentation: 1 A valid and recent (within three months) Basic Disclosure Certificate. 2 The fee Passport sized photographs (if the application relates to a collectors licence) (Other relevant documentation may also be requested). Tacit consent should not apply in relation to scrap metal dealer licence applications as there is an overriding public interest in ensuring that the suitability of applicants is assessed before the licence is issued. Other Licences If you carry waste, you will also be required to have a waste carriage licence obtained from the Environment Agency. You must supply details on the application form. How do I pay for my licence? Licences can be paid for by one of the following preferred means: A cheque/postal order made payable to Woking Borough Council By credit or debit card to Civic Offices. NB Cash should not be sent through the normal postal service You can contact us: By environmental.health@woking.gov.uk By phone: By post: Environmental Health, Civic Offices, Gloucester Square, Woking, Surrey GU21 6YL