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This compliance checklist covers every requirement a scrap metal dealer must satisfy before opening and for every transaction. Print it, laminate it, and post it at your purchase counter for staff reference.
Print This Checklist
Ctrl+P or Cmd+P → Save as PDF. Formatted for 8.5×11 paper.
⚙️ SCRAP DEALER COMPLIANCE CHECKLIST
ScrapDealerGuide.pages.dev — Free to print and share
□ BEFORE YOU OPEN
- □ State registration / license obtained and current
- □ License posted visibly at purchase counter
- □ Surety bond filed (if state requires)
- □ Transaction recording system operational
- □ Electronic reporting system set up (if required)
- □ Prohibited items list posted at counter
- □ All staff trained on ID collection
- □ All staff trained on prohibited items list
- □ Payment delay procedure documented
- □ Check / ACH payment system ready (no cash for regulated metals)
□ EVERY TRANSACTION
- □ Verify seller is 18+ years old
- □ Collect valid government-issued photo ID
- □ Record: full name, address, ID type and number
- □ Record: material type, weight, amount agreed
- □ Record: date, time, and employee name
- □ Item is NOT on state prohibited list
- □ Catalytic converter: collect VIN + ownership proof
- □ Catalytic converter: photograph seller and converter
- □ Issue payment voucher — start hold timer
- □ Submit to electronic reporting (if required)
□ PAYMENT RELEASE
- □ Hold period has fully elapsed
- □ No law enforcement hold on transaction
- □ Payment by check or ACH — not cash
- □ Check mailed to address on record (some states)
- □ Check number recorded in transaction log
□ RECORDS & INSPECTIONS
- □ All records retained minimum 2 years (3 in GA, VA)
- □ Records accessible within 5 minutes on request
- □ License current — renewal date not overdue
- □ Bond current and filed (if required)
- □ Quarterly self-audit of 20 random transactions
Requirements vary by state. Verify with your state licensing agency. ScrapDealerGuide.pages.dev
This checklist is a general reference only. State requirements vary significantly. Always verify with your state's licensing agency.
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