South Carolina Scrap Metal Dealer Registration Requirements

South Carolina regulates scrap metal dealers under South Carolina Code of Laws § 56-5-6410 et seq. and the South Carolina Secondary Metals Recycler Act. The South Carolina Law Enforcement Division (SLED) administers dealer registration and coordinates compliance with local law enforcement.

Registration at a Glance

Item	Detail
Issuing agency	South Carolina Law Enforcement Division (SLED)
Annual fee	$200 per location
Surety bond	$10,000 required for nonferrous metal dealers
Background check	Required for all owners and managers
Payment hold	3 business days — all regulated nonferrous metals
Cash payment	No cash for nonferrous metals exceeding $25
Record retention	2 years
Electronic reporting	Required — daily submission to SLED reporting system

SLED oversight: Because registration is administered through the state's law enforcement agency rather than a commercial licensing body, compliance inspections in South Carolina tend to be conducted by experienced investigators rather than administrative staff. Maintain meticulous records — SLED investigators are familiar with every documentation requirement.

South Carolina Electronic Reporting

South Carolina requires dealers to submit transaction records daily to the SLED electronic reporting system. The system is integrated with the National Crime Information Center (NCIC) to enable real-time cross-referencing of transaction data against stolen property reports. Dealers must set up an account with the SLED reporting system before making their first purchase of regulated materials.

The $25 Cash Threshold

South Carolina's cash payment ban has a $25 threshold — cash payments for nonferrous metals are prohibited when the transaction value exceeds $25. This is a lower threshold than most states. In practice, virtually any meaningful nonferrous metal transaction will exceed $25, so the ban functions as a near-universal cash prohibition for regulated materials.

South Carolina Catalytic Converter Requirements

South Carolina requires for every catalytic converter purchase: seller photo ID, VIN of the source vehicle, current vehicle registration or title, photograph of the converter, no cash payment, and a 3-day hold. South Carolina additionally requires dealers to submit catalytic converter transactions to the SLED reporting system within 24 hours — before the 3-day hold expires.

Prohibited Items in South Carolina

South Carolina's prohibited items list includes all universal prohibited items plus: copper wire from utility infrastructure, aluminum wire from residential sources without renovation documentation, beer kegs bearing brewery marks, air conditioning compressor units without licensed HVAC contractor documentation, and any material bearing a South Carolina municipal or utility company's name or logo.

Frequently Asked Questions

Contact SLED directly at sled.sc.gov for current instructions on establishing a reporting account. The process typically involves submitting your dealer registration number, business information, and a point of contact for law enforcement communications. SLED may direct you to an approved third-party reporting platform rather than a direct submission system — verify the current approved method when you register.

South Carolina law requires dealers to post a notice at the purchase counter listing the prohibited items and the ID collection requirements. The notice must be in a conspicuous location visible to sellers before they approach the counter. Failure to post the required notice is an independent violation — separate from any transaction-level violation. Download our compliance checklist for a reminder of posting requirements.

Verify current South Carolina requirements at sled.sc.gov. Not legal advice.