Scrap metal dealer licences

Scrap Metal Dealers must apply to their local authority for a licence under the Scrap Metal Dealers Act 2013. The Act repeals the Scrap Metal Dealers Act 1964 and consolidates scrap metal dealers and motor salvage operators under one licensing regime. Registrations under the Scrap Metal Act1964 and the Vehicles Crime Act 2001 acts are no longer valid.

If you want to operate as a scrap metal dealer in the Borough you must therefore apply for a licence from us.

Who needs a licence?

Anyone carrying on business as a scrap metal dealer requires a licence under the Scrap Metal Dealers Act 2013.

A person carries on business as a scrap metal dealer if the person either carries 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 carries on business as a motor salvage operator.

However, gold, silver, and any alloy of which 2 per cent or more by weight is attributable to gold or silver is not defined as scrap metal. Also, a person who manufactures articles is not considered to be selling scrap metal if that person sells scrap metal only as a by-product of manufacturing articles or as surplus materials not required for manufacturing them.

Licence Summary

In order to run a scrap metal business you must be licensed by the council. There are two types of licence:

A site licence

This will be required where a business of scrap metal dealer is carried out at a premises. A site manager will be required to be named for each site. There can be a site manager for more than one site, but each site can not have more than one site manager named on its licence. The licensee will then be permitted to operate from that site as a scrap metal dealer including transporting to and from those sites from any local authority area.

A collector’s licence

This authorises the licensee to operate as a mobile collector only in the area of the issuing local authority, permitting them to collect scrap metal as appropriate. This includes commercial as well as domestic scrap metal. If a mobile collector operates within more than one local authority’s district, a licence will be required for each authority that (s)he operates in. Please note- A licensee can not hold both a site licence and a collectors licence issued by the same authority. In addition, one can not hold more than one site licence issued by the same authority but can hold site and/or collectors licences in other authorities. 

Further Information

• Scrap Metal Dealers Act 2013 (Legislation website)
• Guidance to Applicants (PDF)