Licensing of scrap metal dealers

1 Requirement for licence to carry on business as scrap metal dealer

(1) No person may carry on business as a scrap metal dealer unless authorised by
a licence under this Act (a “scrap metal licence”).

(2) 5See section 21 for the meaning of “carry on business as a scrap metal dealer”.

(3) A person who carries on business as a scrap metal dealer in breach of
subsection (1) is guilty of an offence and is liable on summary conviction to a
fine not exceeding level 5 on the standard scale.

2 Form and effect of licence

(1) 10A scrap metal licence is to be issued by a local authority.

(2) A licence must be one of the following types—

(a) a site licence, or

(b) a collector’s licence.

(3) A site licence authorises the licensee to carry on business at any site in the
15authority’s area which is identified in the licence.

(4) A site licence must—

(a) name the licensee,

(b) name the authority,

(c) identify all the sites in the authority’s area at which the licensee is
20authorised to carry on business,

(d) name the site manager of each site, and

(e) state the date on which the licence is due to expire.

(5) A collector’s licence authorises the licensee to carry on business as a mobile
collector in the authority’s area.

(6) A collector’s licence must—

(a) name the licensee,

(b) 5name the authority, and

(c) state the date on which the licence is due to expire.

(7) A licence is to be in a form which—

(a) complies with subsections (4) and (6), and

(b) enables the licensee to comply with section 10 (display of licence).

(8) 10The Secretary of State may in regulations prescribe further requirements as to
the form and content of licences.

(9) 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 authority.

3 Issue of licence

(1) 15A local authority must not issue or renew a scrap metal licence unless it is
satisfied that the applicant is a suitable person to carry on business as a scrap
metal dealer.

(2) In determining whether the applicant is a suitable person, the authority may
have regard to any information which it considers to be relevant, including in
20particular—

(a) whether the applicant or any site manager has been convicted of any
relevant offence;

(b) whether the applicant or any site manager has been the subject of any
relevant enforcement action;

(c) 25any previous refusal of an application for the issue or renewal of a scrap
metal licence (and the reasons for the refusal);

(d) any previous refusal of an application for a relevant environmental
permit or registration (and the reasons for the refusal);

(e) any previous revocation of a scrap metal licence (and the reasons for the
30revocation);

(f) whether the applicant has demonstrated that there will be in place
adequate procedures to ensure that the provisions of this Act are
complied with.

(3) In this section—

(a) 35“site manager” means an individual proposed to be named in the
licence as a site manager,

(b) “relevant offence” means an offence which is prescribed for the
purposes of this section in regulations made by the Secretary of State,
and

(c) 40“relevant enforcement action” means enforcement action which is so
prescribed.

(4) In determining whether a company is a suitable person to carry on business as
a scrap metal dealer, a local authority is to have regard, in particular, to
whether any of the following is a suitable person—

(a) 45any 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).

(5) In determining whether a partnership is a suitable person to carry on business
5as a scrap metal dealer, a local authority is to have regard, in particular, to
whether each of the partners is a suitable person.

(6) The authority must also have regard to any guidance on determining
suitability which is issued from time to time by the Secretary of State.

(7) The authority may consult other persons regarding the suitability of an
10applicant, including in particular—

(a) any other local authority;

(b) the Environment Agency;

(c) the Natural Resources Body of Wales;

(d) an officer of a police force.

(8) 15If the applicant or any site manager has been convicted of a relevant offence,
the authority may include in the licence one or both of the following
conditions—

(a) that the dealer must not receive scrap metal except between 9 a.m. and
5 p.m. on any day;

(b) 20that 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 when it is received.

(9) “Specified” means specified in the condition.

4 Revocation of licence and imposition of conditions

(1) 25The authority may revoke a scrap metal licence if it is satisfied that the licensee
does not carry on business at any of the sites identified in the licence.

(2) The authority may revoke a licence if it is satisfied that a site manager named
in the licence does not act as site manager at any of the sites identified in the
licence.

(3) 30The authority may revoke a licence if it is no longer satisfied that the licensee
is a suitable person to carry on business as a scrap metal dealer.

(4) Section 3(2) to (7) apply for the purposes of subsection (3).

(5) If the licensee or any site manager named in a licence is convicted of a relevant
offence, the authority may vary the licence by adding one or both of the
35conditions set out in section 3(8).

(6) A revocation or variation under this section comes into effect when no appeal
under paragraph 9 of Schedule 1 is possible in relation to the revocation or
variation, or when any such appeal is finally determined or withdrawn.

(7) But if the authority considers that the licence should not continue in force
40without conditions, it may by notice provide—

(a) that, until a revocation under this section comes into effect, the licence
is subject to one or both of the conditions set out in section 3(8), or

(b) that a variation under this section comes into effect immediately.

(8) In this section “the authority” means the local authority which issued the
licence.

5 Further provision about licences

Schedule 1 (which makes further provision about licences) has effect.

6 5Supply of information by authority

(1) This section applies to information which has been supplied to a local authority
under this Act and relates to a scrap metal licence or to an application for or
relating to a licence.

(2) The local authority must supply any such information to any of the following
10persons who requests it for purposes relating to this Act—

(a) any other local authority,

(b) the Environment Agency,

(c) the Natural Resources Body for Wales, and

(d) an officer of a police force.

(3) 15This section does not limit any other power the authority has to supply that
information.

7 Register of licences

(1) The Environment Agency must maintain a register of scrap metal licences
issued by authorities in England.

(2) 20The Natural Resources Body for Wales must maintain a register of scrap metal
licences issued by authorities in Wales.

(3) Each entry in the registers must record—

(a) the name of the authority which issued the licence,

(b) the name of the licensee,

(c) 25any trading name of the licensee,

(d) the address of any site identified in the licence,

(e) the type of licence, and

(f) the date on which the licence is due to expire.

(4) The registers are to be open for inspection to the public.

(5) 30The Environment Agency or the Natural Resources Body for Wales may
combine its register with any other register maintained by it.

8 Notification requirements

(1) An applicant for a scrap metal licence, or for the renewal or variation of a
licence, must notify the authority to which the application was made of any
35changes which materially affect the accuracy of the information which the
applicant has provided in connection with the application.

(2) A licensee who is not carrying on business as a scrap metal dealer in the area
of the authority which issued the licence must notify the authority of that fact.

(3) Notification under subsection (2) must be given within 28 days of the
beginning of the period in which the licensee is not carrying on business in that
area while licensed.

(4) If a licensee carries on business under a trading name, the licensee must notify
5the authority which issued the licence of any change to that name.

(5) Notification under subsection (4) must be given within 28 days of the change
occurring.

(6) An authority must notify the relevant environment body of—

(a) any notification given to the authority under subsection (2) or (4),

(b) 10any variation made by the authority under paragraph 3 of Schedule 1
(variation of type of licence or matters set out in licence), and

(c) any revocation by the authority of a licence.

(7) Notification under subsection (6) must be given within 28 days of the
notification, variation or revocation in question.

(8) 15Where an authority notifies the relevant environment body under subsection
(6), the body must amend the register under section 7 accordingly.

(9) An applicant or licensee who fails to comply with this section is guilty of an
offence and is liable on summary conviction to a fine not exceeding level 3 on
the standard scale.

(10) 20It is a defence for a person charged with an offence under this section to prove
that the person took all reasonable steps to avoid committing the offence.

(11) In this section “the relevant environment body” means—

(a) for an authority in England, the Environment Agency;

(b) for an authority in Wales, the Natural Resources Body for Wales.

9 25Closure of unlicensed sites

Schedule 2 (which makes provision for the closure of sites at which a scrap
metal business is being carried on without a licence) has effect.

Conduct of business

10 Display of licence

(1) 30A scrap metal dealer who holds a site licence must display a copy of the licence
at each site identified in the licence.

(2) The copy must be displayed in a prominent place in an area accessible to the
public.

(3) A scrap metal dealer who holds a collector’s licence must display a copy of the
35licence on any vehicle that is being used in the course of the dealer’s business.

(4) The copy must be displayed in a manner which enables it easily to be read by
a person outside the vehicle.

(5) 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 not exceeding level 3 on
40the standard scale.

11 Verification of supplier’s identity

(1) A scrap metal dealer must not receive scrap metal from a person without
verifying the person’s full name and address.

(2) That verification must be by reference to documents, data or other information
5obtained from a reliable and independent source.

(3) The Secretary of State may prescribe in regulations—

(a) documents, data or other information which are sufficient for the
purpose of subsection (2);

(b) documents, data or other information which are not sufficient for that
10purpose.

(4) If a scrap metal dealer receives scrap metal in breach of subsection (1), each of
the following is guilty of an offence—

(a) the scrap metal dealer;

(b) if the metal is received at a site, the site manager;

(c) 15any person who, under arrangements made by a person within
paragraph (a) or (b), has responsibility for verifying the name and
address.

(5) It is a defence for a person within subsection (4)(a) or (b) who is charged with
an offence under subsection (4) to prove that the person—

(a) 20made arrangements to ensure that the metal was not received in breach
of subsection (1), and

(b) took all reasonable steps to ensure that those arrangements were
complied with.

(6) A person guilty of an offence under subsection (4) is liable on summary
25conviction to a fine not exceeding level 3 on the standard scale.

(7) A person who, on delivering scrap metal to a scrap metal dealer, gives a false
name or false address is guilty of an offence and is liable on summary
conviction to a fine not exceeding level 3 on the standard scale.

12 Offence of buying scrap metal for cash etc

(1) 30A scrap metal dealer must not pay for scrap metal except—

(a) by a cheque which under section 81A of the Bills of Exchange Act 1882
is not transferable, or

(b) by an electronic transfer of funds (authorised by credit or debit card or
otherwise).

(2) 35The Secretary of State may by order amend subsection (1) to permit other
methods of payment.

(3) In this section paying includes paying in kind (with goods or services).

(4) If a scrap metal dealer pays for scrap metal in breach of subsection (1), each of
the following is guilty of an offence—

(a) 40the scrap metal dealer;

(b) if the payment is made at a site, the site manager;

(c) any person who makes the payment acting for the dealer.

(5) It is a defence for a person within subsection (4)(a) or (b) who is charged with
an offence under this section to prove that the person—

(a) made arrangements to ensure that the payment was not made in breach
of subsection (1), and

(b) took all reasonable steps to ensure that those arrangements were
complied with.

(6) 5A person guilty of an offence under this section is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.

13 Records of dealings: receipt of metal

(1) This section applies if a scrap metal dealer receives any scrap metal in the
course of the dealer’s business.

(2) 10The dealer must record the following information—

(a) 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;

(b) the date and time of its receipt;

(c) 15if the metal is delivered in or on a vehicle, the registration mark (within
the meaning of section 23 of the Vehicle Excise and Registration Act
1994) of the vehicle,

(d) if the metal is received from a person, the full name and address of that
person;

(e) 20if the dealer pays for the metal, the full name of the person who makes
the payment acting for the dealer.

(3) 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.

(4) 25If the dealer pays for the metal by cheque, the dealer must keep a copy of the
cheque.

(5) If the dealer pays for the metal by electronic transfer—

(a) the dealer must keep the receipt identifying the transfer, or

(b) if no receipt identifying the transfer was obtained, the dealer must
30record particulars identifying the transfer.

14 Records of dealings: disposal of metal

(1) This section applies if a scrap metal dealer disposes of any scrap metal in the
course of the dealer’s business.

(2) For these purposes metal is disposed of—

(b) whether or not the disposal is to another person;

(c) whether or not the metal is despatched from a site.

(3) Where the disposal is in the course of business under a site licence, the dealer
must record the following information—

(a) 40the description of the metal, including its type (or types if mixed), form
and weight;

(b) the date and time of its disposal;

(c) if the disposal is to another person, the full name and address of that
person;

(d) if the dealer receives payment for the metal (whether by way of sale or
exchange), the price or other consideration received.

(4) Where the disposal is in the course of business under a collector’s licence, the
dealer must record the following information—

(a) 5the date and time of the disposal;

(b) if the disposal is to another person, the full name and address of that
person.

15 Records: supplementary

(1) The information mentioned in sections 13(2) and (5) and 14(3) and (4) must be
10recorded in a manner which allows the information and the scrap metal to
which it relates to be readily identified by reference to each other.

(2) The records mentioned in section 13(3) and (4) must be marked so as to identify
the scrap metal to which they relate.

(3) The dealer must keep the information and other records mentioned in sections
1513(2) to (5) and 14(3) and (4) for a period of 3 years beginning with the day on
which the metal is received or (as the case may be) disposed of.

(4) If a scrap metal dealer fails to fulfil a requirement under section 13 or 14 or this
section, each of the following is guilty of an offence—

(a) the scrap metal dealer;

(b) 20if the metal is received at or (as the case may be) despatched from a site,
the site manager;

(c) any person who, under arrangements made by a person within
paragraph (a) or (b), has responsibility for fulfilling the requirement.

(5) It is a defence for a person within subsection (4)(a) or (b) who is charged with
25an offence under this section to prove that the person—

(a) made arrangements to ensure that the requirement was fulfilled, and

(b) took all reasonable steps to ensure that those arrangements were
complied with.

(6) A person guilty of an offence under this section is liable on summary
30conviction to a fine not exceeding level 5 on the standard scale.

Supplementary

16 Right to enter and inspect

(1) A constable or an officer of a local authority may enter and inspect a licensed
site at any reasonable time on notice to the site manager.

(2) 35A constable or an officer of a local authority may enter and inspect a licensed
site at any reasonable time, otherwise than on notice to the site manager, if—

(a) reasonable attempts to give such notice have been made and have
failed, or

(b) entry to the site is reasonably required for the purpose of ascertaining
40whether the provisions of this Act are being complied with or
investigating offences under it and (in either case) the giving of notice
would defeat that purpose.

(3) Subsections (1) and (2) do not apply to residential premises.

(4) A constable or an officer of a local authority is not entitled to use force to enter
premises in the exercise of the powers under subsections (1) and (2).

(5) A justice of the peace may issue a warrant authorising entry (in accordance
5with subsection (7)) to any premises within subsection (6) if the justice is
satisfied by information on oath that there are reasonable grounds for believing
that entry to the premises is reasonably required for the purpose of—

(a) securing compliance with the provisions of this Act, or

(b) ascertaining whether those provisions are being complied with.

(6) 10Premises are within this subsection if—

(a) the premises are a licensed site, or

(b) the premises are not a licensed site but there are reasonable grounds for
believing that the premises are being used by a scrap metal dealer in the
course of business.

(7) 15The warrant is a warrant signed by the justice which—

(a) specifies the premises concerned, and

(b) authorises a constable or an officer of a local authority to enter and
inspect the premises at any time within one month from the date of the
warrant.

(8) 20A constable or an officer of a local authority may, if necessary, use reasonable
force in the exercise of the powers under a warrant under subsection (5).

(9) A constable or an officer of a local authority may—

(a) require production of, and inspect, any scrap metal kept at any
premises mentioned subsection (1) or (2) or in a warrant under
25subsection (5);

(b) require production of, and inspect, any records kept in accordance with
section 13 or 14 and any other records relating to payment for scrap
metal;

(c) take copies of or extracts from any such records.

(10) 30Subsection (11) applies if a constable or an officer of a local authority (“the
officer”) seeks to exercise powers under this section in relation to any premises.

(11) If the owner, occupier or other person in charge of the premises requires the
officer to produce—

(a) evidence of the officer’s identity, or

(b) 35evidence of the officer’s authority to exercise those powers,

the officer must produce that evidence.

(12) In the case of an officer of a local authority, the powers under this section are
exercisable only in relation to premises in the area of the authority.

(13) A person who—

(a) 40obstructs the exercise of a right of entry or inspection under this section,
or

(b) fails to produce a record required to be produced under this section,

is guilty of an offence and is liable on summary conviction to a fine not
exceeding level 3 on the standard scale.