The procedure for licensing the processing (recycling) of scrap and waste of precious metals

article 09/10/2020

The Federal law No. 282-FL of August 02, 2019 adopted the amendments to the Law “On licensing certain types of activities”.

The amendments provided for the licensing of the following activities:

  • purchase from individuals of jewelry and other products made of precious metals and precious stones, scrap of these products;
  • processing or recycling of scrap and waste of precious metals, except scrap and waste generated and collected by organizations and individual entrepreneurs during self-production, or jewelry and other self-produced products from precious metals, not sold and returned to manufacturers.

We informed about these amendments in our publication “Amendments to the Licensing act” of September 16, 2019.

According to the amendments, legal entities and individual entrepreneurs must issue the appropriate licenses, or terminate their activities no later than February 2, 2021.

By Decree of the Government of the Russian Federation of September 12, 2020 No. 1418, two Provisions were approved:

1 Provision on licensing the processing (recycling) of scrap and waste of precious metals (except processing (recycling) by companies and individual entrepreneurs of scrap and waste of precious metals formed and collected by them in the process of self-production, as well as self-produced jewelry and other products from precious metals, not sold and returned to the manufacturer);

2 Provision on licensing the purchase of jewelry and other items made of precious metals and precious stones and scrap of such items from individuals.

In accordance with these Provisions, license applicants must meet the following requirements:

- availability of buildings, facilities, structures and premises or their parts, in each of the places where activities are carried out, owned by property rights or other legal basis;

- availability of the necessary weighing equipment, owned by property rights or other legal basis;

- availability of at least one employee with a higher or secondary vocational education on "Technology of materials" or additional vocational education under the advanced training program (more than 72 hours) in the field of licensed activity or with at least one year of work experience in this area. This requirement does not apply to individual entrepreneurs filing for the license to themselves;

- availability of accounting systems, storage and preservation of precious metals.

A state fee is charged for the issuance and renewal of license, or the issuance of duplicates of them.

Until the RF Government approves the criteria for assigning these types of activities to a certain risk category, scheduled inspections of licensing control are not provided.

The licensing of these types of activities is carried out by the Federal Assay Chamber.

The subscribers of the Information and Analytical system Globas have access to all available information (including archive data) about entities engaged in the processing or recycling of scrap and waste of precious metals.