How To Open A Scrap Yard In South Africa

A Scrap Yard is a place where scrap is collected before being recycled or discarded.

Below is How To Open A Scrap Yard In South Africa

Scrap metal businesses serve as great sources of income in the area of South Africa nowadays. Only those individuals who know a lot of things about metal works and business management can handle all the things that are meant to be provided in the daily operations of such type of business.

There are so many ways to make a great start for this business in South Africa. And the following ideas embody the legal steps on how to start a scrap metal business in the place that was stated at the present time.

Scrap metals are the primary investments that a businessman has to collect while aiming to start a new scrap metal business in South Africa.

Focus on the Collection of the Scrap Metals

Scrap metals can be found anywhere. It can be collected from business establishments and huge junk shops.

In fact, it is considered as one of the most important commodities in the market nowadays due to the fact that it can be used to produce several kinds of recycled items that are more affordable compared to the products that were created with the use of pure metals.

But there are so many requirements proper to make sure that the process of scrapping metals will never be illegal in the eyes of the authorities in South Africa.

And such requirements include a well-accomplished Form U18 and Form U19 from the South African Revenue.

The collection of scrap metals for a new scrap metal business must be executed also with the use of a high-quality dump truck that has a bed cap to make sure that it will never be considered by the authorities as an illegal operation.

Create a Scrap Yard and Hire Skillful Workers

A scrap metal business won’t operate excellently without a scrapyard.

A scrapyard refers to a place where the collected scrap metals can be segregated by size and can be deposited for several days or months while waiting for new buyers.

It should be constructed in an isolated place where residential and commercial establishments are not available to make sure that the harmful chemicals that are present in the scrap metals which will be deposited inside of it won’t affect the health of the residents of South Africa.

It should be provided with appropriate extraction tools to make sure that it will never be penalized by the authorities especially to the government agencies that are concern with the health of the residents of South Africa.

Scrap Metal Licence In South Africa

Application Procedure

1 Process Execution

A New Application for Registration as a Second-Hand Goods Recycler must be submitted to the DSO by the applicant whose business premise is located in the policing precinct of that DSO.
An applicant may simultaneously apply as both a Dealer and a Recycler on one SAPS 601 form (Application for the Registration as a Second-Hand Goods Dealer/Recycler). This combined application process may only be utilized if the responsible person is the same person for both registrations and the premises for the Dealer and Recycler are one, in the same premises.
Take Note: There is no payment required for second-hand goods
registration application!

2. Responsible Person(s)

 Second-Hand Goods Recycler (applicant)
 Designated Second-Hand Goods Officer (DSO)

3 Governance

Section 25 of the Act – Obligation to Register as a Recycler
“25.

(1) Every dealer who engages in the business of recycling any controlled metal must apply to be registered as a recycler, in addition to having to be registered in terms of section 2.

(2) An application for registration must be made to the National Commissioner and must be accompanied by the prescribed documents.

(3) The National Commissioner must, after consideration of the application and upon being satisfied that the applicant complies with all the requirements, register the applicant as a recycler and issue the prescribed certificate.

(a) have in his or her possession any apparatus which can be used for the recycling of any controlled metal or any article or substance containing any controlled metal, unless—
(i) such person is registered as a recycler; or
(ii) in the case of precious metals, such a person is authorized to possess and recycle precious metals under the Precious Metals Act, 2005 (Act No. 37 of 2005), or any other applicable legislation;

(b) acquire or dispose of any cable consisting of controlled metal of which the cover has been burnt, unless the seller thereof is able to provide a reasonable explanation for the burnt cover, and only after the matter has been reported to a police officer in the manner contemplated in section 22(1)(a); or

(c) be in possession of any cable consisting of controlled metal of which the cover has been burnt, unless such person is able to provide a reasonable explanation for the burnt cover.

(5) If a recycler suspects, or on reasonable grounds should suspect, that the appearance of aspects of any scrap metal offered to him or her has been tampered with or there was an attempt to alter the appearance of aspects thereof in order to conceal the identity of the scrap metal, such recycler must make a report contemplated in section 22(1)(c) which applies with the changes required by the context.”
Regulation 11 – Application for Registration as Recycler
“11.

(1) Any person intending to apply for registration as a recycler in terms of section 25 of the Act, must obtain the relevant application form
from the office of the Designated Police Officer or the official Internet website of the South African Police Service at www.saps.gov.za.
complete the appropriate portion and sign the application form.

(2) The application form contemplated in sub-regulation (1) must essentially be in the form and contain the particulars as set out in
Annexure “A” to these regulations

(3) The applicant must ensure that the duly completed application form and all the documents referred to in these regulations are lodged
with the office of the Designated Police Officer.”
Paragraph 5.1.4.1 of National Instruction: 1/2013 Second-Hand Goods “The application form, SAPS 601 (Application for the Registration as a
Second-Hand Goods Dealer/Recycler) is received by the DSO from an applicant (no payment required). The SAPS 601 form must be completed as
per the relevant Completion Instructions.”

Do you need planning permission for the scrap yard?

The scrap metal sector is subject to strict licensing controls.

As a scrap metal dealer, you must: apply for planning permission from your local planning authority if you are going to operate as a yard-based dealer.

How do I become a scrap dealer?

What Is A Scrap Business?

1- Know Where To Collect Scrap.

2- Choosing A Business Center.

3- Transportation Is Also Essential.

4- Take Permits From The Local Municipal Area.

5- Plastic Comes Mostly.

6- Conditions Abroad Are Different.

7- Caution Is Required.