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NSW Police Bans Scrap Metal Dealers from Paying Cash to Sellers

Have you heard about the Scrap Metal Industry Act 2016? You must have, in case you have tried to opt for unwanted car removal to get rid of your unwanted and scrap car. The act regulates the scrap metal industry in order to help the police department fight property crime, which comprises of the stealing and disposal of motor vehicles that have been stolen, as well as metal at scrap metal yards.

What Regulatory Measures Does The Act Provide For?

  • Stop scrap metal dealers from doling out cash for the scrap metal they buy.
  • Make scrap metal dealers register, with the Commissioner of Police.
  • Need scrap metal dealers to let the authorities know about suspicious transactions, if any.
  • Require dealers to maintain the transaction records of purchasing scrap metal that comprise of the detailed information of the person selling it.
  • Make way for long-term, as well as short-term closure orders for the premises where the scrap metal business is being conducted, in case grave criminal offences have been committed in the area or the business is not registered under the Scrap Metal Industry Act 2016.
  • Not allow scrap metal dealers to accept a motor vehicle or any of its parts (chassis or engine) as scrap metal, in case it does not display the identification details elaborately.
  • Let police officers enter a scrap metal business premise, without warrant, if they want to investigate the violation of the Act. They can also search, make records, seize and make copy of the records that are related to the scrap metal industry.

The NSW Police Force Security Licensing & Enforcement Directorate is going to maintain the Public Register of Scrap Metal Dealers, which will be displayed for inspection on the official website of the NSW Police Force.

All scrap metal business owners were asked to register their businesses before 1st March 2017, after which the offence provisions in the Act were supposed to start.

For those of you who wanted to know about the Scrap Metal Industry Regulation 2016, it is important to know the following.

The term “scrap metal” mentioned in the Act does not include aluminium cans. Therefore, the dealers of scrap metals can pay cash in exchange of these when helping a car’s owners, with unwanted car removal solutions.

The dealer is excused from keeping a record of the unique identifier of a vehicle, in the event that a vehicle is cubed, crushed or shredded before the transaction, in relation to the vehicle, took place.

The regulation gives an idea about the photo identification proofs that should be used by the individuals who sell scrap metals.

It also states that the fee required to register a business of scrap metal for a period of 3 years is $210.

One can also read the Regulation to learn about the penalty notice amounts payable by the offender, if the activity falls under the offences category of the Act.

The Scrap Metal Industry Act 2016, thus, gives an insight into the dos and don’ts of selling scrap metal and getting cash from the buyers. It highlights the rules and regulations in details, so that you face no problem while choosing unwanted car removal as an option to clean your yard and garage.
Find out more about the rules and regulations by visiting:

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