Scrap Metal Licence Application

1 Every person, business or organization that carries on a business of dealing in second-hand goods, must register with the South African Police Service. This includes an auctioneer, general dealer, jeweler, motor vehicle dealer, and scrap metal dealer/recycler.

2 It is important to note that the Act only applies to a person who carries on a business of dealing in second-hand goods. A person getting rid of his or her own (privately owned) used goods does not fall under the Act and these persons do not have to register. In most instances, these persons will not pay income tax on the money they get from the sale of their goods. On the other hand, a person who buys and sells second-hand goods for a living is carrying on a business in second-hand goods and therefore must be registered as a Second-Hand Goods Dealer in terms of the Act.

3 A Dealer, who engages in the business of recycling controlled metal must in addition to being registered as a Dealer, also be registered as a Recycler. A recycler will, therefore, be registered both as a dealer and as a recycler. A
recycler is a person who processes controlled metal for melting, smelting or granulating.



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

(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.

(4) No person may—

(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 authorised 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 official 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 or aspects of any scrap metal offered to him or her has been tampered with or there was an attempt to alter the appearance or 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

(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
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 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.”

Download Full Scrap Dealership Licence Procedure here