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Standard fact sheet.
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Large print fact sheet.

Motor vehicle recyclers 

This information is prepared to assist motor vehicle recycler licence holders. It is a guide only and not a substitute for legal advice. If you are unsure of your obligations you should refer to the Motor Dealers and Repairers Act 2013, the Motor Dealers and Repairers Regulation 2014, or seek legal advice.

New licence commenced 1 December 2014

From 1 December 2014, activities relating to the dismantling of motor vehicles and the reconstructing of motor vehicle parts are licensed under a motor vehicle recycler licence. This is a change under the Motor Dealers and Repairers Act 2013, which is a consolidation of the Motor Dealers Act 1974 and the Motor Vehicle Repairs Act 1980.

Please note: if you are an existing licensed auto-dismantler or motor vehicle parts reconstuctor, you will now be licensed under a motor vehicle recycler licence. You will be able to continue to do the same work as under your current licence. If you are a licensed motor dealer and currently do auto-dismantling or motor vehicle part reconstructing, you will now be required to have a separate motor vehicle recycler licence to do this work.

In addition to the new licence category, other changes to licensing arrangements include the introduction of an option of a 1 or 3 year licence. Licensees who choose a 3 year licence will save on processing fees.

Vehicles exempt from the Act

A motor vehicle recycler’s licence will not be required for certain types of vehicles. These include:

  • vehicles not acquired for the transport of goods or passengers on public roads (e.g. agricultural equipment)
  • vehicles with a mass over 4.5 tonnes (i.e. those covered by the Heavy Vehicle National Law)
  • vehicles that are not capable of being registered in NSW (e.g. quad bikes, segways, motorised wheelchairs and battery powered bikes.

Transitional period for new requirements

If you are an existing licence holder as at 1 December 2014, you will have until 1 September 2015 to comply with the new requirements around displaying licences in advertising and signage and record keeping, which includes the new additions to the prescribed parts list. In the meantime, keep following the current requirements under the former Motor Dealers Act 1974. Outlined below is information on record keeping and signage display requirements.

Record keeping requirements 

Motor vehicle recyclers must keep a register to record the acquisition and disposal of prescribed parts and accessories. The register ensures that there is an audit trail of goods. This aims to help reduce the trade in stolen vehicles and parts.

The format of the record keeping register has changed. The previous vehicle (Form 2A) and parts (Form 2B) record keeping registers have been consolidated into one form, covering both motor vehicles and parts. Motor vehicle recyclers are now required to use a new ‘Form 3 – Motor Vehicle Recycler’s Register’. This form is to be completed in the same manner as the previous forms.

Until 1 September 2015 motor vehicle recyclers will be able to download and use copies of prescribed record keeping registers free of charge from the NSW Fair Trading website.

Motor vehicles 

The motor vehicle details and the name and address of the person from whom the vehicle was acquired, including their identification details, must be recorded in the register. If the person who sold the vehicle to you is a trade owner, their motor dealer licence number must be recorded. If the seller is not a trade owner their drivers licence or other photo identification details must be recorded.

Parts 

Acquisition details for each prescribed part, including the date the part was acquired, how it was acquired and from whom, must also be recorded. Each prescribed part must get its own entry number. The disposal details for each prescribed part entered in the register must also be recorded.

Prescribed parts 

The prescribed parts to be recorded in the register are:

Chassis
Major body section
Bonnet
Right side door (front)
Left side door (front)
Right side door (back)
Left side door (back)
Hatchback door
Boot lid
Right front guard
Left front guard
Front bumper bar
Rear bumper bar
Engine/engine block
Gearbox/transmission/transaxle (front wheel drive vehicles)
Instrument cluster/odometer/hour gauge
Car radio/tape/compact disc (CD equipment)
Electronic navigation equipment
Multimedia equipment
Airbags and air curtains (side impact airbags)
Alloy wheels
Seats
Finaldrive (differential for rear wheel drive vehicles)
Headlights

Note: each entry in the register must include the name and address of the persons from whom the part was acquired or to whom the part was sold as well as the identity of the vehicles from which the part was removed. This applies in all cases except where there are multiple entries for each vehicle.

Salvaged parts

When a prescribed part is salvaged from a vehicle, it must also be recorded in the register. If a prescribed part is salvaged, that is, kept for sale, a ‘Yes’ must be recorded in the salvaged column. For damaged parts that have no value and are going to be scrapped, a ‘No’ must be recorded. If the part is not attached to the vehicle, N/A (not applicable) is recorded. The information must be completed within 1 day of the vehicle’s purchase, not when the part is sold or disposed of.

Receipts

Receipts must be issued to persons when prescribed parts are disposed of. The receipt should contain:

  • the date of disposal;
  • a description of the part;
  • the entry number marked on the part (not the tag number or any other part);
  • the vehicle identification number (VIN) for the vehicle from which the part was taken;
  • the purchaser’s name and address;
  • the purchaser’s identification details.

The receipts must be in duplicate and consecutively numbered. The receipts must be kept for at least six years after the last receipt in the book was issued.

Inspection records

At the request of an authorised officer, licensees must make their records available for inspection. Authorised officers may take temporary possession of a licensee’s records for the purpose of taking notes or making copies or extracts from those records. Licensees must be able to display and print records kept electronically.

Authorised officers include:

  • an investigator appointed under section 18 of the Fair Trading Act 1987.
  • any person authorised in writing by the Commissioner for Fair Trading.
  • a person authorised in writing by the Chief Executive Officer of Roads and Maritime Services.
  • any member of the police force.

Marking of prescribed parts

Motor vehicle recyclers must mark all prescribed parts with the appropriate entry number from the register relating to that part. The entry number must be on all prescribed parts including those that are damaged and cannot be salvaged.

The entry number must be recorded on the part itself using a permanent marker. Chalk or other substances that may smudge or wash off must not be used. Tags can be used if it is impracticable to mark the part with a permanent marker. It is good practice to mark the parts whilst they are still attached to the vehicle as this reduces the opportunity for error if unmarked parts are removed for sale or storage. Any parts found at the premises that are not marked will be of concern to NSW Fair Trading and the police.

Advertising requirements 

Licensed motor vehicle recyclers must publish their licence name, and the words licence number (or similar abbreviation) followed by their licence number in some promotional material so that consumers know who they are dealing with. The requirement covers any advertising that promotes a specific place or places of business for which the licence is granted.

This includes any advertising where the licensee’s specific place of business is identified. For example, if a licensee advertises on TV and mentions their places of business, they would be required to display their licence details in the advertisement. This requirement does not apply where only products are advertised, such as when a franchisor advertises its brand or products on behalf of all franchisees.

Signage requirements

Licensed motor vehicle recyclers will be required to include their licence name, and the words licence number (or similar abbreviation) followed by their licence number, on a sign at each place of business for which the licence is granted. Licence holders are free to choose signage so long as it includes the required particulars and is readily visible to anyone who approaches the place of business. 

Registration Plates

The registration plates attached to any vehicle purchased by a motor vehicle recycler must be returned to Roads and Maritime Services as soon as possible after the purchase or acquisition.

Sale of vehicles by motor vehicle recyclers

A motor vehicle recycler can only sell a demolished or dismantled vehicle or a motor vehicle that has been acquired and used predominately for the purposes of carrying on the business of a motor vehicle recycler.

Suspicious goods

It is an offence under the Motor Dealers and Repairers Act 2013 for a licensee or an employee to fail to inform an authorised officer of any suspicious goods that may have been stolen or unlawfully obtained. These goods may have been taken into stock or offered for sale by a person. If an authorised officer suspects that there are stolen or unlawfully obtained goods on the premises, the officer may serve a notice on the licensee prohibiting the disposal, selling, parting of possession or alteration of the goods for a period of 14 days after the notice is served.

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