The Second-Hand Goods Act, No 6 0f 2009, which is expected to be fully implemented on January 1, would include several controlled metals and would regulate dealers to combat trade in stolen goods, such as copper cables.

The legislation would require all scrap metal dealers engaging in recycling of any controlled metals to be registered as a recycler, in addition to being registered as a second hand goods dealer, Edenvale and Bedfordview Second Hand Goods Forum coordinator Justine Bezuidenhout said on Friday.

Sentencing for being in possession of stolen goods would be decided in court, while some offences would result in imprisonment. Failure to register could result in up to ten years imprisonment, and stopping trade without notifying authorities could result in up to three years imprisonment.

The new Act does not allow scrap metal dealers to have in their possession any apparatus which could be used for the recycling of any controlled metal or any article or substance containing any controlled metal, Bezuidenhout said at the Copper Cable Theft conference, in Johannesburg.

“Unless such a person is registered as a recycler or as in the case of precious metals, such a person is authorised to possess and recycle precious metals under the Precious Metals Act, or any other applicable legislation, such dealers are also not allowed to acquire or dispose of any cable consisting of controlled metal of which the cover has been burnt, unless the seller thereof is able to provide a reasonable explanation for the burnt cover, and only after the matter has been reported to a law enforcement officer,” she said.

Bezuidenhout added that the Act was primarily aimed at tightening the regulation of certain sectors, such as the scrap-metal and second-hand vehicles industries in an attempt to combat serious crimes. It would also enable a legal framework that would limit the possibility of diffusing stolen goods through the marketplace, and allow the Safety and Security Minister to adapt the regulatory environment for each of the relevant industry segments to ensure effective implementation measures.

Further, the Act would give the South African Police greater powers to undertake inspection, enter and search premises, and seize goods, while also holding out the possibility of extending their powers by notice in the Gazette.

It also makes provision for the accreditation of dealers’ associations, which would be required to play a role in policing the Act through inspections and self-regulation, said Bezuidenhout. “All second hand goods dealers must be registered with a forum and these forums will have the power to inspect records, goods and business practices of their members, thus promoting ethical standards and compliance with the law.”

Controlled metals include copper, aluminium, zinc, chrome, lead, white metals, nickel, tungsten, tin, lead, ferrosilicon, ferrochrome, brass, bronze, cobalt, ferrovanadium and precious metals as defined in the Precious Metals Act 27 of 2005, or any article consisting of any of these metals. This was unlike the Second-Hand Goods Act, No 23 of 1955, which excluded all ferrous metals, zinc and tin.

Meanwhile, Microdot manufacturer Recoveri CEO Philip Opperman said effective cable-marking technologies would play a key role in curbing copper theft, particularly from the manufacturing process, with regard to managing the theft component of the threads. “Microdot technology is the enabler of the new Act as scrap metal dealers will be forced to check on a unit number and by certifying if it is or is not a stolen product, would not be able to foul the law.”

Microdot technology, which is a process whereby valuable assets are given a ‘DNA’ invisible to the naked eye, appears to be gaining increasing acceptance as a helpful asset-recovery tool among crime-wary South Africans.

The recovery rate for stolen vehicles with the microdot technology is 91% compared with the 52 % for vehicles without the technology, Edenvale Community Policing Forum chairpairson Andy Crawley said.