Traders checklist

Second-hand dealers

• Does your business keep accurate and complete records of its transactions? If you deal in second-hand goods other than scrap metal, your business should keep:
  • an accurate description of the goods, including a description of any identifying mark or label
  • the identifying mark or number you assigned to the goods
  • the seller’s full name and address of the
  • details of the identification provided by the seller
  • the date and time the goods were received
  • the price, if any, paid for the goods
  • the name of employee or other person acting on your behalf.
• Do you have procedures in place to ensure that you keep goods in the form they were received for seven days before allowing any dealing with them? Note that some goods are exempt from the seven-day retention requirements. You can check whether any goods you deal in are exempt.
• Does your business display the required signage? You can find the notices your business must display on Signs, notices and pawn tickets.

Scrap metal dealers

• If you deal in scrap metal, you are prohibited from paying cash for scrap metal you receive, or receiving cash payments for scrap metal you sell. Do you have systems in place to enable you to pay for and receive payment for scrap metal only by cheque or electronic transfer?
• You can still pay cash for some metal goods, such as cans and certain household appliances. You can check whether any metal goods you deal in are exempt from the Second-Hand Dealers and Pawnbrokers Act 1989 on Exemptions.
• You must also keep records when you buy scrap metal and also when you sell or dispose of scrap metal.
• When you buy scrap metal you must keep:
  • an accurate description of the scrap metal including its quantity and/or weight, if applicable
  • if it is a motor vehicle its vehicle identifier
  • the name and address of the seller
  • the identification details of the seller
  • the date and time the scrap metal was received
  • a copy of the cheque or electronic funds transfer, and
  • the name of any employee or other person acting on your behalf.

• When you sell or dispose of scrap metal you must keep:
  • an accurate description of the scrap metal including its quantity and/or weight, if applicable
  • if it is a motor vehicle its vehicle identifier
  • the name and address of the buyer
  • the date, time, method and location of disposal of the scrap metal
  • a copy of the cheque or electronic funds transfer
  • the name of any employee or other person acting on your behalf
  • the name of the shipping company, the overseas port destination and the number or identifier displayed on the shipping container, if the scrap metal was removed by shipping container.

Pawnbrokers

• Does your business display the required signage? You can find the notices your business must display on Signs, notices and pawn tickets.
• Your business should keep records of:
  • the transaction number. This is also the transaction number placed on the pawn ticket
  • an accurate description of the pawned goods, including any identifying mark or label
  • the customer’s name and address details of the identification provided by the customer
  • the address for the service of notices
  • the date the goods were pawned on
  • the loan amount
  • the charge imposed for the loan transaction
  • the amount and date of every payment for the loan
  • the loan period
  • if the goods are redeemed the date of redemption
  • if the goods are not redeemed and are sold, the date of sale, the price paid and the reasonable costs of sale
  • if the goods are not redeemed and are not sold, the manner of disposal.

• Have you given the following notices to a person who pawns goods?

• A pawn ticket
• A notice about the customer's and pawnbroker's rights and responsibilities
• A notice of the charge for the transaction.

• Do your pawn tickets include the required information?

• Your name and address
• Name and address of the customer
• Date of the loan
• Amount loaned
• Description of the goods pawned
• Number of the pawn transaction
• Pawnbroker's charge
• Period of the loan
• Amount(s) paid and date(s) of payment. The ticket must be updated each time a payment is made.

• When residual equity is $10 or more, you must send a Notice of sale of pawned goods (PDF, 14KB) to the person who pawned the goods. For more information, view Residual equity.

• Was the loan period fixed at the time the goods were pawned?

Trading in electrical goods