New Jersey Scrap Metal Dealer Registration Requirements

New Jersey regulates scrap metal dealers under N.J.S.A. 45:28-1 et seq. (the New Jersey Scrap Metal Recyclers Licensing Act) and associated environmental regulations. Uniquely, New Jersey involves both the Division of Consumer Affairs for the dealer license and the Department of Environmental Protection (DEP) for environmental compliance — dealers must satisfy both agencies.

Registration at a Glance

Item	Detail
Issuing agency	NJ Division of Consumer Affairs (license) + DEP (environmental)
License fee	$500 initial; $250 biennial renewal
Surety bond	None required for the dealer license
Background check	Required — fingerprint-based for all principals
DEP registration	Separate DEP Class D Recycling Center approval required
Payment hold	3 business days — regulated metals
Cash payment	No cash for regulated nonferrous metals
Record retention	3 years

Two separate approvals required: New Jersey is one of only a few states where operating as a scrap metal dealer requires satisfying two separate regulatory bodies. The Division of Consumer Affairs license covers the commercial transaction aspects; the DEP Class D Recycling Center approval covers the environmental management of the materials you process. Do not begin operations until both approvals are in hand.

New Jersey Environmental Requirements

The DEP Class D Recycling Center registration requires: a site plan showing material storage areas, documentation of hazardous material handling procedures (batteries, refrigerants, fluids), stormwater pollution prevention plan if your site is above a certain size, and in some cases, a Local Approval from your municipality. The DEP process can take 60–90 days — plan accordingly when opening a new location.

New Jersey Catalytic Converter Law (A4970, 2022)

New Jersey's catalytic converter law requires: seller photo ID, VIN of source vehicle, title or current registration, photograph of converter and seller, no cash payment, and a 3-day hold. New Jersey also requires dealers to record the specific part number visible on the converter if readable, and to submit transaction records to the New Jersey State Police within 24 hours via the approved electronic reporting system.

Frequently Asked Questions

Plan for 3–6 months for a new location. The Division of Consumer Affairs license typically processes in 4–8 weeks after fingerprints clear. The DEP Class D registration can take 60–90 days on its own, and requires local municipal approval in some jurisdictions which adds more time. Begin both processes simultaneously and do not sign a lease or purchase equipment until you have a realistic timeline from both agencies.

Verify current New Jersey requirements at njconsumeraffairs.gov and nj.gov/dep. Not legal advice.