The Cabinet Office confirmed that the 90 day temporary ban on the export of scrap metal which was implemented on 27th July was extended by two weeks to the 11 November, 2011 at which time the Pawnbrokers and Second-hand Dealers Act, 2011 regulating the export of scrap metal will have entered into effect.
The new Act requires all businesses dealing with the export of scrap metal including gold, to be licensed under the Business Licence Act.
Under the provisions of the new law business owners or Dealers engaged in the export of scrap metal will have the duty and responsibility to verify the identity of customers and to maintain records of all transactions.
Scrap metal export businesses will also be subject to monitoring by a police designated administrator. Additionally, the law vests the police with a range of powers of entry for production of records and for the seizure and forfeiture of articles included in the inventories of scrap metal business places.
The law also specifically prohibits a pawnbroker or secondhand dealer from dealing or trading in firearms or any other prohibited and or illegal substances.