A BRIEF OVERVIEW OF THE ACT AND ITS IMPACT ON RECYCLERS OF CONTROLLED METAL SECOND-HAND GOODS ACT (ACT NO. 6 OF 2009) SA INSTITUTE FOR FOUNDRYMEN

PERFORMANCE PLAN Reducing levels of crime will be realized through: ensuring compliance in terms of the Second Hand Goods Act; improving cooperation with communities through crime awareness and public education programmes, Community Safety Forums and sector policing and thereby improving trust in the CJS;

EXISTING LEGISLATION The previous legal framework was outdated and has serious shortcomings. The new Second-Hand Goods Act, 2009 (Act No 6 of 2009) came into operation 30 April 2012 – three month transitional period Regulations for dealers associations were published 6 September 2012 Dealers regulations published 3 April 2012

SECOND HAND GOODS ACT 2009 How will the 2009 Act change things? The Act aims to achieve three objects: To regulate dealers and pawnbrokers To limit the trade in stolen goods To promote ethical standards in the industry

SECOND HAND GOODS ACT 2009 How will the 2009 Act change things? The Act has the following mechanisms to achieve this: – Include all dealers and goods – Differentiate between industry segments to maximize benefits for associations and members – Accredited trade or dealers associations who have a real say in the regulation of their industry

INDUSTRY REQUIREMENTS Each industry segment have unique challenges and requirements Regulations should create a separate and tailored framework for each of the different industry segments Ideal is to harmonize the needs of Government (SAPS) in preventing crime with that of second- hand dealers.

REGISTRATION All persons who carries on business as dealer must be registered. Application is made to National Commissioner and for every premises. Dealer includes person who carries on business of second-hand goods, scrap metal dealer and pawnbroker. Definitions of recycler, scrap metal, second-hand goods, precious metals and pawnbroker are relevant to this obligation

REGISTRATION CERTIFICATE Issued by National Commissioner, valid for five years (clause 7) Provision for amendment, conditions, variation of conditions (clause 8,9) Termination and cancellation of registration (clause 10) Renewal of registration- to be applied for at least 90 days before registration (clause 11)

DISQUALIFICATIONS Previous conviction- sentenced to imprisonment without option of a fine for certain offences (s14) In preceding 10 years convicted for offence in terms of 1955 or this Act. Unrehabilitated insolvent. Under 18 years. Does not permanently reside in RSA Other law disqualifies person from carrying on a business Business of which person with interest, a partner or beneficiary of trust is disqualified

RECORDS BY DEALERS Identity and particulars of all acquisitions or disposal of goods. Description of goods. Signature/ name/ identity number of client. Copies of identity document or passport Retain documents for 5 years.

OBLIGATION TO REGISTER AS RECYCLER Dealer involved in recycling of any controlled metal must register – section 25(1) Only a registered recycler may possess apparatus which can be used for recycling of any controlled metal Acquisition, possession and disposal of burnt cable is an offence

DEFINITIONS recycler means a person who carries on the business of recycling scrap metal recycle means to melt, smelt, granulate, shred, dismantle, sort, grade, cut or prepare, either by hand or by the use of specialised plant, machinery and equipment, for use by consuming works such as foundries, mills, smelters, refiners and manufacturers;

ENFORCEMENT Provision for routine inspections during working hours. Warrants for search and seizure. Powers in respect of search and seizure and sealing off of premises. Provision to extend powers in Act to public entities, to assist with enforcement- eg Spoornet, Telkom and ESCOM Stiff sanctions

INDUSTRY Regulations must provide for: General Dealers and Pawnbrokers. Motor Vehicle and Vehicle Parts Dealers. Scrap Metal Dealers. Recyclers. Communication Equipment Dealers. Auctioneers.

FUNCTIONS: DEALERS ASSOCIATIONS Establish categories of dealers according to goods Establish and maintain minimum legal and ethical standards Inspect members for compliance Make recommendations to National Commissioner iro registration Assist members with r&d Advise the National Commissioner in respect to industry standards and technological developments in the industry Must keep members registers

ACCREDITATION Application to National Commissioner. Refusal requires opportunity for applicant to make written representations before final decision 30 days. Dealers association to be notified of decisions in respect of application Can be cancelled if there is non-compliance. Opportunity for representations where cancellation is considered 30 days.

ROLE OF ASSOCIATIONS Each industry segment may be represented by one or more associations. Regulations will determine the minimum standards for associations to comply with. Regulations determine minimum standards applicable to the members.

ROLE OF ASSOCIATIONS The role of the Accredited Associations will be to- Support their members in all respects (registration application, education, information, business management etc). Recommend legal changes. Promote ethical trading amongst its members. Inspect members

SELF-REGULATION The Act makes provision for a degree of self- regulation The Act can operate without any self-regulation Self-regulation will only apply in areas where there is a proven record and where there is no risk of abuse.

SUMMARY The Act provides for strong regulatory environment impacting on all second-hand goods and dealers. Act will address each market segment uniquely through Regulations. Legitimate dealers will benefit. Dealers in /recyclers of metals such as copper and aluminium must be registered as such and no recycling equipment may be kept at any premises other than that of registered recyclers.

QUESTIONS THANK YOU BRIGADIER J A VAN DER WALT South African Police Service