Civic Government (Scotland) Act 1982

Licensing and regulation of metal dealersS

28 Metal dealers: licensing and regulation.S

(1)[F1A] “metal dealer’s licence”, shall be required for carrying on business as a metal dealer.

F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)A metal dealer’s licence shall, in addition to specifying the activity which he engages in, specify the premises in or from which the activity is to be carried on.

F329 Metal dealers’ exemption warrants.S

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F430 Keeping of records.S

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F531 Retention of metal.S

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32 Itinerant metal dealers.S

(1)A licence, to be known as an “itinerant metal dealer’s licence” shall be required for carrying on business as an itinerant metal dealer.

(2)An itinerant metal dealer’s licence shall have effect so as to permit the licence holder to carry on business as an itinerant metal dealer anywhere in Scotland.

F633 Receipts and invoices: itinerant metal dealers.S

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[F733AAcceptable forms of payment for metalS

(1)A metal dealer or an itinerant metal dealer may pay for metal only by a method of payment specified in subsection (2).

(2)The methods of payment are—

(a)by means of a cheque which under section 81A of the Bills of Exchange Act 1882 is not transferable, or

(b)by electronic transfer of funds to a bank or building society account in the name of the payee.

(3)If a metal dealer or an itinerant metal dealer pays for metal otherwise than in accordance with subsection (1), the dealer and each of the persons listed in subsection (4) (if any) commit an offence.

(4)The persons are—

(a)in a case of payment being made by a metal dealer at a place of business of the dealer, the person with day to day management of the place,

(b)in any case, any person who, acting on behalf of the metal dealer or the itinerant metal dealer, makes the payment.

(5)It is a defence for a metal dealer, an itinerant metal dealer or a person described in subsection (4)(a) who is charged with an offence under this section to prove that the dealer or, as the case may be, person—

(a)made arrangements to ensure that the payment was to be made only in accordance with subsection (1), and

(b)took all reasonable steps to ensure that those arrangements were complied with.

(6)A person who commits an offence under this section is liable, on summary conviction, to a fine not exceeding level 5 on the standard scale.

(7)The Scottish Ministers may by regulations—

(a)amend subsection (2) so as to add, amend or remove methods of payment, and

(b)make such consequential modification of section 33B or 33C(3) as they consider appropriate.

(8)Regulations under subsection (7) are subject to the affirmative procedure.

(9)In this section, “place of business” means a place of business operated by a metal dealer in the ordinary course of that dealer's business as a metal dealer.

33BAcceptable forms of payment: meaning of “bank or building society account”S

(1)In section 33A(2)(b), “bank or building society account” means an account held with a bank or a building society.

(2)For the purposes of subsections (1) and (4)—

(a)“bank” means an authorised deposit-taker that has its head office or a branch in the United Kingdom, and

(b)“building society” has the same meaning as in the Building Societies Act 1986.

(3)In subsection (2)(a), “authorised deposit-taker” means—

(a)a person who has permission to accept deposits under Part 4A of the Financial Services and Markets Act 2000 (but see subsection (4) for exclusions),

(b)an EEA firm of the kind mention in paragraph 5(b) of Schedule 3 to that Act that has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule).

(4)The reference in subsection (3)(a) to a person who has permission to accept deposits under Part 4A of the Financial Services and Markets Act 2000 does not include—

(a)a building society,

(b)a society registered as a credit union under the Co-operative and Community Benefit Societies Act 2014 or the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)),

(c)a friendly society within the meaning given by section 116 of the Friendly Societies Act 1992, or

(d)an insurance company within the meaning of section 275 of the Finance Act 2004.]

[F833CRequirement to keep recordsS

(1)This section applies where a metal dealer or an itinerant metal dealer (“the dealer”), in the course of the dealer's business—

(a)acquires any metal (whether or not for value), or

(b)processes or disposes of any metal (by any means).

(2)In respect of any metal acquired, the dealer must record the following information—

(a)the description and weight of the metal,

(b)the date and time of the acquisition of the metal,

(c)if the metal is acquired from another person—

(i)the name and address of the person,

(ii)the means by which the person's name and address was verified,

(d)the price, if any, payable in respect of the acquisition of the metal, if that price has been ascertained at the time when the entry in the record relating to that metal is to be made,

(e)the method of payment of the price (if applicable),

(f)where no price is payable for the metal, the value of the metal at the time when the entry is to be made as estimated by the dealer,

(g)in the case of metal delivered to the dealer by means of a vehicle, the registration mark (within the meaning of section 23 of the Vehicle Excise and Registration Act 1994) borne by the vehicle.

(3)Where the dealer has paid for metal, the dealer must keep a copy of—

(a)the cheque, or

(b)the document evidencing the electronic transfer of funds.

(4)In respect of any metal processed or disposed of, the dealer must record the following information—

(a)the description and weight of the metal immediately before its processing or disposal,

(b)in the case of metal which is processed, the process applied,

(c)in the case of metal disposed of by sale or exchange—

(i)the consideration for which it is sold or exchanged,

(ii)the name and address of the person to whom the metal is sold or with whom it is exchanged, and

(iii)the means by which the person's name and address was verified,

(d)in the case of metal disposed of otherwise than by sale or exchange, its value immediately before its disposal as estimated by the dealer.

(5)The dealer must—

(a)keep separate records in relation to—

(i)metal acquired, and

(ii)metal processed or disposed of,

(b)record the information immediately after the metal is acquired, processed or disposed of,

(c)keep a copy of any document produced by a person to verify that person's name or address, and

(d)retain information recorded or documents kept under this section for a period of not less than 3 years beginning with the date on which the information was recorded or document obtained.

(6)The Scottish Ministers may by regulations––

(a)specify the means by which a person's name and address may be verified for the purposes of this section,

(b)require further information to be recorded about any metal acquired, processed or disposed of by metal dealers or itinerant metal dealers.

(7)Regulations under subsection (6)—

(a)may make different provision for different purposes, and

(b)are subject to the negative procedure.

33DForm of recordsS

(1)A metal dealer or an itinerant metal dealer (“a dealer”) must record the required information—

(a)in books with serially numbered pages, or

(b)by means of a device for storing and processing information.

(2)Where a dealer records the required information in books, the dealer must use separate books for recording the required information about—

(a)metal acquired, and

(b)metal processed or disposed of.

(3)Where a dealer uses a device for storing and processing information, the dealer must, by means of the device or otherwise, keep details of all modifications made in the records kept by the device.

(4)Where a dealer is required to keep a copy of a document under section 33C, it is sufficient for the dealer—

(a)to keep an electronic copy of the document, and

(b)in relation to a document verifying a person's name or address, keep only one copy of the document.

(5)In this section, “required information” means the information about metal acquired, processed or disposed of that a dealer is required to record under or by virtue of section 33C(2), (4) or (6).

33EMetal dealer to keep records for each place of businessS

(1)A metal dealer must keep separate records of the required information in relation to—

(a)each place of business operated by the dealer, and

(b)any metal acquired, processed or disposed of otherwise than at such a place of business.

(2)Where a metal dealer records the required information in books, the dealer must not, at any time at a place of business, use more than—

(a)one book for recording the required information about metal acquired, and

(b)one book for recording the required information about metal processed or disposed of.

(3)In this section—

• “place of business” means a place of business operated by a metal dealer in the ordinary course of that dealer's business as a metal dealer,

• “required information” means the information about metal acquired, processed or disposed of that a dealer is required to record under or by virtue of section 33C(2), (4) or (6).]

34 Offences relating to metal dealing.S

(1)Any metal dealer or itinerant metal dealer who disposes of metal to a person apparently under the age of 16 or who acquires metal from such a person, whether that person is acting on his own behalf or on behalf of another person, shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F9level 3 on the standard scale].

(2)In any proceedings for an offence under subsection (1) above, it shall be a defence to prove that the person to whom it is alleged the metal was disposed of or from whom it is alleged it was acquired was 16 years of age or over at the time.

[F10(2A)Any metal dealer or itinerant metal dealer who fails to comply with a requirement of section 33C, 33D or 33E commits an offence and is liable, on summary conviction, to a fine not exceeding level 3 on the standard scale.]

(3)Any metal dealer or itinerant metal dealer who knowingly or recklessly [F11produces any information or document which the dealer is required to record or keep under section 33C which is false or misleading in a material particular] shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F9level 4 on the standard scale].

(4)Any person who, when selling metal to or purchasing metal from a metal dealer or itinerant metal dealer, gives the dealer a false name or address shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F9level 3 on the standard scale].

35 Functions of the court in relation to metal dealers convicted of offences.S

(1)Where a metal dealer or itinerant metal dealer is convicted of an offence relating to his business as such, the court by which he is convicted may make any order which it is competent to make under section 7(6) of this Act and an extract of such conviction and sentence (if any) shall, within 6 days after the date of the conviction, be transmitted by the clerk of the court to the licensing authority which granted the licence.

(2)Where a metal dealer is convicted—

(a)of an offence relating to his business as such; or

(b)of any offence which in the opinion of the court is an offence involving dishonesty,

the court may, in addition to any other order which it is competent to make, order that he shall not dispose of or process any metal acquired by him until the expiry of a period of 7 days after its acquisition.

(3)In making an order under subsection (2) above, the court shall specify a period not exceeding 2 years for which it is to remain in force, but the court may revoke such an order at any time on the application of the person to whom it relates.

(4)Any person who fails to comply with an order made in relation to him under subsection (2) above shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F12level 4 on the standard scale] or to imprisonment for a period not exceeding 60 days or to both.

(5)A licensing authority receiving, by virtue of subsection (1) above, an extract of conviction and sentence (if any) of an itinerant metal dealer shall notify all other licensing authorities of the particulars of the conviction.

[F1335ARegister of metal dealers and itinerant metal dealersS

(1)The Scottish Ministers may by regulations make provision for and about the establishment, keeping and maintaining of a register of metal dealers and itinerant metal dealers.

(2)Regulations under subsection (1) may, in particular, make provision—

(a)about who is to keep and maintain the register,

(b)requiring the provision of information to the person who keeps the register,

(c)specifying the information to be included in the register in relation to each person who holds a licence as a metal dealer or itinerant metal dealer,

(d)about the form and publication of the register,

(e)for the charging of fees in such circumstances as may be specified in the regulations.

(3)Regulations under subsection (1) may—

(a)make incidental, supplementary, consequential, transitional, transitory or saving provision,

(b)modify this or any other enactment.

(4)Regulations under subsection (1) which contain provision which adds to, replaces, or omits any part of an Act are subject to the affirmative procedure.

(5)Otherwise, regulations under subsection (1) are subject to the negative procedure.]

36 Appropriate licence required.S

Where a person carries on business as a second-hand dealer and as a metal dealer and as an itinerant metal dealer or as any two of these kinds of dealer he shall require the appropriate licence in respect of each activity.

37 Interpretation of sections 28 to 36.S

(1)In sections 28 to 36 of this Act—

• [F14“itinerant metal dealer” means a person who—

  • (a)

    carries on a business which consists wholly or substantially of buying or selling for scrap—

    (i)

    metal articles that are old, broken, worn out or defaced, or

    (ii)

    partly manufactured articles that are made wholly or partly from metal,

    (b)

    collects articles of the kind described in paragraph (a)(i) and (ii) by means of visits from place to place, and

    (c)

    disposes of such articles without causing them to be kept in a metal store or other premises (including by disposing or giving custody of the articles to a person who keeps a metal store),]

• “metal” means any metal (including any precious metal) and any alloy of any metals, whether old or new and includes manufactured articles, whether old or new, made wholly or partly of metal, of any of the materials commonly known as hard metal or of cemented or sintered metallic carbides;

• “metal dealer” means a person carrying on business in terms of subsection (2) below but does not include an itinerant metal dealer within the meaning of this subsection;

• “metal store” means a place where metal is received or kept in the course of a metal dealer’s business;

• “processing”, in relation to metal, includes melting down and any process whereby the composition or form of the metal or of any article which is made of the metal is altered so as to make it substantially less identifiable than before the process, and “process” and “processed” shall be construed accordingly.

(2)[F15For the purposes of sections 28 to 36, a person carries on business as a metal dealer if the person—

(a)carries on a business which consists wholly or substantially of buying or selling for scrap—

(i)metal articles that are old, broken, worn out or defaced, or

(ii)partly manufactured articles that are made wholly or partly from metal, or

(b)carries on business as a motor salvage operator (so far as that does not fall within paragraph (a)).

(3)For the purposes of subsection (2)(b), a person carries on business as a motor salvage operator if the person carries on a business which consists wholly or substantially of—

(a)recovering salvageable parts from motor vehicles for re-use or sale and selling or disposing of the rest of the vehicle for scrap,

(b)buying significantly damaged motor vehicles and subsequently repairing and reselling them, or

(c)buying or selling motor vehicles which are to be the subject (whether immediately or upon a subsequent resale) of any of the activities mentioned in paragraphs (a) and (b).]

[F1637AExemptionsS

(1)The Scottish Ministers may by regulations make provision specifying circumstances in which the provisions of sections 28 to 37 are not to apply.

(2)Regulations under subsection (1)—

(a)may make transitional, transitory or saving provision,

(b)are subject to the negative procedure.]