Scrap Metal Dealers Act 2013

by K&L Gates LLP
Contact

On 1 December 2013 the Scrap Metal Dealers Act 2013 (the “Act”) came into force in England and Wales. The Act aims to combat the recent increase in metal theft which is being spurred on partly by rising commodity costs. The Act requires that scrap metal dealers (“dealers”) have a licence from their local authority and maintain a record of transactions. Cash payment for scrap metal is prohibited. Failure to comply is a criminal offence subject to a fine of any amount a court decides is appropriate.

1. Who is affected?

The Act applies to a person or company carrying 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”.

It would be a question of fact for a court to decide whether the buying or selling of scrap metal forms all or part of a person’s business, or such a minimal part of their overall business dealings that the definition of “scrap metal dealer” within the Act is not made out. In deciding this, a court might consider for instance the proportion of the business related to scrap metal in terms of value or volume.

However, Home Office Guidance states that the Act, in replacing the Scrap Metal Dealers Act 1964 and the Vehicles (Crime) Act 2001, was not intended to extend the scope of persons needing to register. Therefore it is unlikely that the Act would apply to companies producing ferrous and non-ferrous metals simply because they purchase processed scrap metal as a raw material to use in their manufacturing process. Likewise, the Act is not intended to apply to manufacturers if they sell scrap metal only as a by-product of manufacturing articles or as surplus material not required for manufacturing articles.

2. What are the requirements?

Scrap dealers must:

  • Have a licence (as from 1 December 2013). A licence lasts for three years and is either site-specific or mobile. Site managers will be named in site-specific licences. The local authority can only grant a licence to a “suitable person”. Suitability will be assessed having regard to any relevant previous convictions and/or enforcement actions of the applicant or any site manager, and whether the applicant has demonstrated that adequate procedures are in place to comply with the Act.
  • Notify the local authority of any changes materially affecting the accuracy of the information that was provided when applying for the licence, such as a change of name (generally within 28 days of the change).
  • Display a copy of their licence at each site identified in the licence in a prominent place in an area accessible by the public and on any vehicle being used in the course of the dealer’s business.
  • Verify the name and address of a seller of scrap metal at the point of sale, by reference to information from a reliable source.
  • Not pay for scrap metal in cash. A dealer may only pay/accept payment by cheque or by electronic transfer of funds (e.g. by debit or credit card).
  • Keep records of scrap metal bought and sold. Dealers must record a description of the metal, when it was received/disposed of, the full name and address of the other party (and a copy of any document used to verify this), and a copy of the cheque or particulars of the electronic transfer if receiving or a record of the amount of consideration if disposing.

The Environment Agency (in England) and the Natural Resources Body for Wales will maintain public registers recording:

  • the name of the authority that issued the licence; 
  • the name and trading name of the licensee; 
  • the address of any site identified in the licence; and 
  • the type of licence and the date on which the licence is due to expire.

3. What are the penalties for non-compliance?

The following are criminal offences, each subject to a fine:

From 1 October 2013

  • Payment (made or received) in cash (any amount a court considers appropriate).

From 1 December 2013:

  • Buying or selling scrap metal without a licence (any amount the court considers appropriate). 
  • Failing to comply with notification requirements or failing to display licence (up to £1,000).

Additionally, if an offence committed by a legal entity is proved to have been committed with the consent or connivance, or attributable to any neglect, of a director/manager/secretary/officer, that individual also commits an offence and is liable to the same penalty.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© K&L Gates LLP | Attorney Advertising

Written by:

K&L Gates LLP
Contact
more
less

K&L Gates LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!