Additional requirements for Secondhand Dealers

Record keeping requirements

All licensed secondhand dealers must keep "dealers records". There is no form for your "dealers record". You can keep it in any form you wish. However, the Act requires you record certain information.

Record keeping requirement for articles

(Please remember that "copper in any form" is an "article", so the following rules apply to any copper you acquire irrespective of its form or usefulness etc.)

In your "dealers record" you must record the following information in relation to all articles you acquire in the course of your secondhand dealing business:

the identity of the person from whom you acquired the article (see below for further information);
a description of the article, including its serial number or any other unique identifiers;
the price you paid to purchase the article;
the unique number that you assign to the article for your business purposes;
the name and signature of the person who conducted the transaction on your behalf;
the date of the transaction; and
if the article has an apparent resale value of $40 or more, either the date on which the article was sold or an account of how the article was otherwise disposed of.

You must enter these details into your "dealers record" as soon as practicable.

Details required to establish identity of person from whom article acquired

Your "dealers record" must include the following details relating to an individual's identity:

the person's full name;
their contact address;
their contact phone number, if any;
their date of birth;
their signature; and
details about how you, or the person you authorised to conduct the transaction, verified the persons identity.

The Secondhand Dealers and Pawnbrokers Regulations 2005 may require you to collect additional information from the person regarding their identity. This page will be update once those regulations come into effect.

Verification of identity

You must verify the identity of the person from whom you acquired the article. You can only do this by:

sighting the person's authorised identification; or
if the person is personally known to you, by your personal knowledge.

If you choose to verify the person's identity by personal knowledge, your "dealers record" must show the following details to establish the identity of the person from whom you acquired the article:

the persons full name;
their contact address;
their contact telephone number, if any; and
the fact that you verified the person's identity from personal knowledge.

If you choose to verify a person's identity from personal knowledge and incorrectly record any of these details in your "dealers record" you will be deemed to have made a false entry on your "dealers record".

You do not have to verify the person's identity, in the following circumstances, if you acquire the goods:

at public auction conducted by a licensed auctioneer;
through an internet auction run by an internet auction provider that complies with the prescribed requirements;
at a garage sale and you keep a record of the address at which the goods were sold; and
from a seller who is overseas.

Variation of record keeping rules for scrap metal transactions

If you acquire any scrap metal in the course of your business as a secondhand dealer you must keep the following details:

the full name, contact address, and contact telephone number (if any) of the person from whom you acquired the scrap metal;
the manner in which you verified the person's identity ;
the person's date of birth;
the person's signature;
a description of the nature and quantity of the scrap metal acquired;
the name and signature of the person who conducted the transaction on your behalf; and
the date of the transaction.

Again, these details must be entered into your "dealers record" as soon as practicable.

Offence in relation to details to be recorded

It is an offence which carries, on conviction, a fine of up to $10,000 if you, without reasonable excuse, fail to:

keep a "dealers record";
record in your "dealers record" any information required in relation to a transaction;
add the required information to your "dealers record" as soon as the information is available.

It is also an offence, carrying the same penalty, to make a false entry on your "dealers record".

Storage of and access to "Dealers Record"

You must keep your secondhand "dealers record" at your principal place of business (unless you are an itinerant dealer). You must keep your "dealers record" for 3 years from the date of the transaction to which it relates.

It is an offence, carrying a penalty of up to $10,000 on conviction, to, without reasonable excuse, fail to keep:

your "dealers record" for 3 years; or
at your principal place of business.

You must, when required to do so by a member of Police:

show the member your "dealers record" and any information recorded in it; or
make a copy of all or part of your records and give that copy to the Police officer.

If you fail to do so, without a reasonable excuse, you could be convicted of an offence and fined up to $10,000.

Requirements when handling articles

Articles to be kept for 14-days

When you acquire an article you must retain it, in an unaltered state, for 14 days from the date of the transaction. For that first 14 days after the transaction, you must store the article in a place that can be reasonably conveniently inspected by a member of police.

Exceptions to the 14-day retention requirement

If you:

acquire any articles from another licence holder; or
return the article to the person from whom you acquired it

you do not have to retain the article for 14 days.

Alternatively, if you sell the article as agent for the owner and you record in your "dealers record" the purchaser's:

full name;
date of birth;
contact address;
contact telephone number, if any; and
signature;

as well as recording the means by which you verified the purchaser's identity, you do not have to hold the article for 14 days.

Labelling of article

You must also attach a label to any article you acquire. This label must bear the number that you assigned to it in your "dealers record". This label must remain attached to the article until you have sold it or otherwise disposed of it.

There are exceptions to the obligations to retain and label articles you obtain. See the rules for dealing with articles acquired as part of a group.

Offences

If you fail to comply with the retention and labelling requirements as they apply to articles you will be committing an offence. You could be liable to a $10,000 fine if convicted of failing to comply with the retention and labelling requirements.

Secondhand dealers not to enter into buyback contracts

No licensed secondhand dealer may enter into a buyback contract while apparently acting as a secondhand dealer. It is an offence, carrying a penalty of up to $10,000 on conviction, to enter into a buyback contract in those circumstances.