License for trading in ferrous and non-ferrous metals in Bulgaria

Trade in ferrous and non-ferrous metals in Bulgaria is one of the key sectors in the secondary raw materials industry, but before starting such a business, it is necessary to familiarize yourself with all the legal requirements. Often clients ask us: “What documents are needed for a license to trade in ferrous and non-ferrous metals?” or “How can I open a point for secondary raw materials and what permits are needed?”. The answer to these questions lies in the Waste Management Act (WEEE), which regulates all activities related to the purchase, storage, transportation and trade of ferrous and non-ferrous metal waste.

Registration and license to trade in non-ferrous metals are only one part of the administrative procedures that must be completed. For many of our customers, the question arises: “Do I need a special permit for waste activities?” or “How do I get a license for the purchase of secondary raw materials and which institutions issue it?”. It is important to know that for any activity related to waste, there are different requirements — for example, if you plan to transport metal waste, you will need a registration document for the transport of waste, and for international transport - a special license for the transport of waste.

Particular attention should also be paid to the rules relating to end-of-life electrical and electronic equipment (WEEE), which fall under the regulation of the EIA. Clients often ask: “What are my obligations if I accept and trade such materials?” and “How do I ensure that my secondary raw material point meets all legal requirements?”. Depending on the specific business model and the activities you will carry out, different permits and registrations may be mandatory.

In this article, we will consider in detail how to obtain a license for trading in ferrous and non-ferrous metals, what steps to take to open a secondary raw materials point, as well as how to ensure compliance with the requirements of the Waste Management Act. If you need assistance in registering, issuing permits or consulting on legal requirements, the team of Elan Consultingis ready to help you in every step of the process — both in Sofia, Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko and throughout Bulgaria.

What does the term “waste” mean in the meaning of Bulgarian legislation?

According to § 1 of the Supplementary Provisionson Waste Management Act (WEEE), the term “waste” includes substances, articles or parts of objects of which the holder is released, intends to be released or is required to be released. For a material to be classified as waste, it must fall into one of the following categories:

1. Residues from production or consumer processes— this includes substances that are obtained in the manufacture of products and can no longer be used in this process (code Q1).
2. Non-standard products— products which do not comply with the regulatory or technical requirements for use (code Q2).
3. Expired shelf life— products that have lost their effectiveness or have expired (code Q3).
4. Materials damaged in accidents or disasters— includes materials and equipment that have lost their original qualities due to accidents or disasters (code Q4).
5. Contaminated materials from cleaning and packaging— waste resulting from cleaning processes, used packaging and containers (code Q5).
6. Unusable partsExamples are dead batteries, worn out catalysts and other similar waste (code Q6).
7. Materials with impaired qualities— these are substances which no longer possess the necessary properties for use, such as contaminated acids and solvents (code Q7).
8. Residues from industrial processes— e.g. sludge, slag and similar materials (code Q8).
9. Residues from treatment processes— waste from industrial treatment plants, bag filters and others (code Q9).
10. Residues from processing machinery— e.g. metal shavings and nuggets (code Q10).
11. Remains of the mining industry— materials from the extraction and processing of natural raw materials (code Q11).
12. Materials mixed with harmful substances— e.g. oils contaminated with polychlorinated biphenyls (code Q12).
13. Materials whose use is prohibited by law(code Q13).
14. Products not intended for use— old furniture, unnecessary household, agricultural and trade items (code Q14).
15. Waste from land reclamation activities— e.g. soils contaminated by construction processes (code Q15).
16. All other materials that meet the definition of waste— if a material does not fall into the above categories, but its owner disposes of it, it is also considered waste (code Q16).

In addition to the general definition of “waste”, ZUOdistinguishes several specific types:

• Household waste— waste that is generated by households, administrative and public buildings, as well as commercial establishments, as long as it does not contain hazardous substances.
• Production waste— waste generated as a result of industrial activity.
• Hazardous waste— contain substances that pose a risk to human health and the environment.
• Construction waste— generated in the process of construction, demolition or reconstruction of buildings.

This classification is important because different types of waste are subject to different treatment, licensing and management regimes, as provided for in Waste Management Act.

Requirements for issuing a license for trading in ferrous and non-ferrous metals in Bulgaria

The procedure for issuing license for trade in ferrous and non-ferrous metal wastein Bulgaria it is strictly regulated and implemented in accordance with the provisions of Waste Management Act (WEEE). The licensing regime was created in order to provide control over the activityand to prevent the illegal trafficking of metalswhile at the same time ensuring compliance with environmental and sanitary standards.

According to Art. 54, para. 1 of the ZOO, commercial activity with ferrous and non-ferrous metal wastes that do not have hazardous properties can only be carried out by Bulgarian and foreign legal entities and individuals registered as tradersunder the Commercial Law or under its national law. In order to carry out this activity, they must Possess a license, issued by Minister of Economy, Energy and Tourismor from Deputy Minister authorized by him.

Exceptions to the licence requirement

According to Art. 54, para. 3 of the ZOO, there are cases in which a license is not required:

1. Sale of technological waste or depreciation breakagewhen the waste is obtained from the person's own production, and the buyer is licensed under the order of the law.
2. Sale of household waste by individualswhen the buyer is licensed.

Requirements for the sites

According to Art. 54, para. 2 of the ZOO, commercial activity with ferrous and non-ferrous metal waste can be carried out only on certain siteswhich should be located:

• IN areas designated for production and warehousing activitiesaccording to general development plans.
• On public transport ports of national and regional importance.
• On railway infrastructure for commercial purposes.

In addition to the location, the sites must comply with environmental and health standardswhich shall be certified by documents issued by the competent authorities.

Necessary documents for issuing a license for trading in ferrous and non-ferrous metals

Traders wishing to obtain a license to trade in ferrous and non-ferrous metals, need to submit an applicationaccording to Art. 54, para. 4to Minister of Economy, Energy and Tourism. The following documents must be attached to the application:

1. Declaration of the commercial status of the applicant, specifying EIKfor Bulgarian companies or an equivalent document for foreign persons (Art. 54, para. 5, item. 1).
2. Document of ownership or lease of the site, accompanied by sketch or other certifying documentfor the location (Art. 54, para. 5, item. 2).
3. Certificate from the Director of the Regional Inspectorate for Environment and Water (RIESW)for site compliance (Art. 54, para. 5, item. 3).
4. Certificate of absence of tax and social security obligationsafter Art. 87, para. 6 of the Tax and Insurance Procedure Code(Art. 54, para. 5, item. 4).
5. Declaration of compliance with the requirements of Art. 60, para. 8 of the OIA(Art. 54, para. 5, item. 5).
6. Declaration that the applicant is not related to a trader who has been revoked or refused a licence(Art. 54, para. 5, item. 6).
7. Document for paid fee(Art. 54, para. 5, item. 7).

Specifics in foreign persons

If the applicant is foreign person, he must present equivalent documents issued by a competent authority in their country, as well as official translationof the documents, when they are not in Bulgarian (Art. 54, paras. 6 and 7).

Issuance of a certificate of conformity at the site

Before issuing the license, the applicant must obtain certificate of conformity at the site, which is issued by the director of the relevant RIESV(Art. 55, para. 1). To do this, the person submits an application, to which he applies:

• Documents certifying the ownership or rental relationship of the site (Art. 55, para. 2, item. 1).
• Certificate of fulfillment of environmental obligations according to Environmental Protection Act(Art. 55, para. 2, item. 2).

After submitting the documents, RIESV carries out an on-the-spot checkand, if the site meets the regulatory requirements, the certificate is issued within 14 days(Art. 55, para. 3). If a discrepancy is found, the issuance of a certificate is refused, and this refusal may be appealed in the order of Code of Administrative Procedure(Art. 55, para. 4).

What is the procedure for issuing the license and in what period is it issued?

The procedure for issuing license for trading with ferrous and non-ferrous metal wastegoes through a number of clearly regulated stages, each of which is accompanied by deadlines within which the competent authorities must give their opinion. According to Art. 56, para. 1 of the ZOO, after the submission of the application and the necessary documentsaccording to art. 54, paras. 4 and 5, Ministry of Economy, Energy and Tourismis obliged to examine the documents received in the term up to two months.

The examination of documents is carried out by interdepartmental commissionwhich consists of an equal number of representatives of Ministry of Economy, Energy and Tourism, Ministry of Environment and Water and Ministry of Interior(art. 56, para. 2). The Minister of Economy, Energy and Tourism commandmentdetermines Chairman, Secretary and Members of the Committee. This commission analyzes the submitted documents and checks the applicant's compliance with the requirements of the law.

Committee meetings are held according to established rulesto the Minister of Economy, Energy and Tourism (art. 56, para. 4). Representatives of branch organizationstraders of ferrous and non-ferrous metals have the right to attend these meetings, but without the right to vote (art. 56, para. 3).

Upon completion of the examination, the Interdepartmental Commission shall prepare Motivated proposalto the Minister of Economy, Energy and Tourism for issuing or refusing to issue a licence(art. 56, para. 5). On the basis of this proposal, the Minister within one month, issued licenseor Motivated order of dismissal(art. 56, para. 6). This means that the entire procedure — from the submission of the application to the final decision — can take up to three months.

The license is issued according to an approved model, which contains number and date of issue, name of the trader, registered office and address of management, single identification code and list of sites where ferrous and non-ferrous metal waste will be traded(art. 57, para. 2). It is important to note that the license is indefinite(art. 57, para. 3), but subject to amendments in cases where there are changes in the trader's activities or sites.

According to art. 57, para. 4, the license is not transferable or transferableexcept in the case of successionaccording to the Commercial Law. This means that if one company holding a license is acquired or merges its activities with another, the rights under the license are transferred to the successor. In addition, the law prohibits carrying out the activity by power of attorneyunless the proxy is employee appointed under an employment contract(art. 57, para. 5).

In case the trader wishes amendment or addition of the licence, he submits applicationto the Minister of Economy, Energy and Tourism, presenting documents certifying the change (art. 58, para. 1). These documents are considered in the same order and within the same timeas in the initial issue of the licence. This means that the procedure again goes through the interdepartmental commission, which in term up to two monthsconsiders the application, and the Minister makes a decision in one month term.

In any change of circumstances entered in the license, the trader is obliged within one monthto declare the changes for inclusion in the licence (art. 58, para. 1). This includes changes in management, the location of the sites or other important parameters of the activity.

For the submission of documents and the issuance, supplementation or amendment of the license, pay fees, which are defined in the Tariff for fees of the Ministry of Economy, Energy and Tourism under The State Fees Act(art. 58, para. 2). It is important to note that in the public registerall fit orders for refusal to issue a license, as well as orders to revoke or terminate a licence, but only after they come into force(art. 58, para. 3).

When is the issuance of a license refused?

The issuance of license for trading with ferrous and non-ferrous metal wasteis subject to strict control, such as Minister of Economy, Energy and Tourismor a deputy minister authorized by him may refuse to issue a license, yes it take away, yes it terminateor yes delete playgroundincluded in it.

According to Art. 59, para. 1 of the Waste Management Act (WEEE), the issuance of a license is refusedin the following cases:

• When the interdepartmental commission has made a reasoned proposal for refusaldue to inconsistencies in the submitted documents or failure to comply with legal requirements (Art. 59, para. 1, item 1, b. “a”).
• If the application for a licence is submitted before the expiry of one year from a previous refusal, unless this refusal is overturned by the court (Art. 59, para. 1, item 1, b. “b”).
• If the application was filed before the expiration of two years of an order to revoke a previous license, unless this order is overturned by the court (Art. 59, para. 1, item 1, b. “c”).
• If the application for supplementing a licence with a new site was submitted by the same trader before the expiry of one year of an order to delete the same site, unless the court has rescinded the order (Art. 59, para. 1, item 1, p. “d”).
• If the application includes a site that is the subject of a pending litigationrelating to its deletion or withdrawal of a licence (Art. 59, para. 1, item 1, b. “e”).
• If the applicant is a person related to a company that has been refused or revoked a licence and the time limits have not expired(Art. 59, para. 1, item 1, b. “e”).

Grounds for revocation of a license

According to Art. 59, para. 1, item 2 of the OIE, the Minister of Economy, Energy and Tourism may to revoke the licensewhen:

• Incorrect data is presentedused to issue, amend or supplement the licence (Art. 59, para. 1, item 2, p. “b”).
• The commercial activity is carried out on a site that is not entered in the license or has been deleted, except where the law allows (Art. 59, para. 1, item 2, b. “c”).
• The Minister of Environment and Water makes a reasoned proposal for withdrawal(Art. 59, para. 1, item 2, p. “d”).
• The trader systematically violates the conditions and order of carrying out the activitywhich puts at risk compliance with environmental and legal requirements (Art. 59, para. 1, item 2, b. “e”).
• The activity is carried out in violation of Art. 60, para. 3 or 4 of the Public Prosecutor's Office, which may include non-compliance with the requirements for documents of origin of the waste (Art. 59, para. 1, item 2, b. “e”).
• The legal basis for the use of the only site listed in the licence has ceased, which means that the company no longer has a legally valid place of business (Art. 59, para. 1, item 2, p. “j”).
• Within 12 months of the deletion of a site, an infringement was found on another site of the same traderresulting in repeated non-compliance (Art. 59, para. 1, item 2, p. “z”).

Termination of the license

The license for trade in ferrous and non-ferrous metal waste can be terminatedin the following circumstances:

• If the trader himself submits a written applicationfor termination (Art. 59, para. 1, item 3, b. “a”).
• If the company is deleted from the Commercial Register, which means that the legal entity no longer exists (Art. 59, para. 1, item 3, b. “b”).
• If the trader does not receive his license within one month of the written notification of its issuance(Art. 59, para. 1, item 3, b. “c”).

Deletion of a site

The Minister of Economy, Energy and Tourism may delete a site entered in the licencewhen:

• The Minister of Environment and Water made a reasoned proposal(Art. 59, para. 1, item 4, b. “a”).
• The Article 56 (1) Commission found that there was no legal basis for the use of the propertyif the site is not the only site entered in the licence (Art. 59, para. 1, item 4, p. “b”).
• No register of purchases and imports and/or register of sales and exports, which means that the trader does not keep the necessary reporting (Art. 59, para. 1, item 4, b. “c”).
• Commercial activity is carried out by authorization of another personwhich the law does not allow (Art. 59, para. 1, item 4, p. “d”).
• The operation of the site is carried out without documents of origin of the waste, in violation of Art. 60, paras. 3 and 4(Art. 59, para. 1, item 4, b. “e”).
• The activity of the site is in violation of Art. 60, para. 6, which means non-compliance with specific work requirements (Art. 59, para. 1, item 4, b. “e”).
• The site lacks 24-hour video surveillance, which is a mandatory condition for the implementation of the activity (Art. 59, para. 1, item 4, p. “j”).

Bank guarantee and advance execution

If the person presents bank guarantee in the amount of BGN 100,000 upon revocation of licenseor 20 000 BGN in case of deletion of a site, the preliminary execution of the order may be suspended (art. 59, para. 2). If the court confirms the decision on revocation or deletion, the bank guarantee is released in favor of the state body.

Appeal and Administrative Obligations

Orders refusing to issue, revoke or delete a site may be appealed under the procedure of the Code of Administrative Procedure(art. 59, para. 3). Upon revocation of a license or deletion of a site, the trader is obliged within 7 days to return the original license to the Ministry of Economy, Energy and Tourism(art. 59, paras. 5 and 6).

What are the requirements for opening a point for secondary raw materials in Bulgaria?

The opening of a point for secondary raw materialsIn Bulgaria, it is strictly regulated by Waste Management Act (WEEE)and related regulations. In order to carry out such an activity, it is necessary for the person to comply with the specific requirements for registration, licensing and operating conditionson the playground.

According to Art. 12, para. 1 of the ZOO, to carry out activities under recovery or disposal of waste, including pretreatmentbefore their reuse or destruction, it is necessary to obtain:

1. Permission, issued in the order of Art. 37 of the ZOO; or
2. Complex permit, issued in the order of Chapter Seven, Section II of the Environmental Protection Act.

Permission is not requiredin a number of specific cases referred to in Art. 12, para. 2 of the ZOO. For example, if the person wants to perform trading with ferrous and non-ferrous metal wastes that do not possess hazardous properties, does not need a permit, but it is mandatory to obtain licensein the order of Chapter Five, Section III of the OIE(Art. 12, para. 3). In addition, if the activity consists only in collection and temporary storage of waste at the site of formation, permission is also not required.

In the case of activities related to collection and transportation of waste, is required registration document, issued by the Director of the relevant Regional Inspectorate for Environment and Water (RIESW), according to Art. 12, para. 4 of the ZOO. This document is mandatory for all persons who carry out transportation of wastein the sense of § 1, items 18 and 19 of the additional provisions of the OIE.

In order for the trader to receive licensefor the activity, before that you need to get certificatefor compliance by RIOSV(Art. 12, para. 5). This document proves that the site on which the activity will be carried out meets the environmental requirements and can be used for collection and treatment of secondary raw materials.

According to Art. 12, para. 7, a permit or a registration document to carry out activities with waste may be issued to:

• Natural or legal persons, registered as traders under Bulgarian or national legislation.
• State and municipal enterprises.
• Associations of municipalities.
• Cooperatives and budget enterprisesthat meet the requirements of the law.

As for location and infrastructureat the secondary raw material sites, Art. 13 of the ZOOprovides that the requirements for the location of waste treatment facilities are determined by ordinance, issued by the Minister of Environment and Water, the Minister of Regional Development and Public Works, the Minister of Agriculture and Food and the Minister of Health.

Exist prohibitions on the placement of playgroundsin certain areas. According to Art. 13a, para. 1 of the ZOO, is not allowed placement of points for secondary raw materials in the sanitary and security zones of water sources for drinking and domestic water supply. In addition, the playgrounds can not be located in the sanitary zones of mineral water deposits, used for medicinal and drinking purposes, if the orders establishing these zones provide for prohibitions and restrictions (Art. 13a, para. 2).

The activities of storage and pretreatmentSome types of waste, such as metal packaging, electronic and electrical equipment, unusable batteries and accumulators, and end-of-life motor vehicles, can be carried out only in certain territories— areas for manufacturing and warehousing activities, ports for public transport and railway infrastructure for commercial purposes(Art. 13a, para. 3). Each site should comply with regulatory requirements for the protection of human health and the environment.

In conclusion, the procedure for opening a point for secondary raw materials in Bulgariaincludes:

1. Registration as a trader— only registered legal or natural persons may carry out activities.
2. Choosing a suitable site, which meets environmental and infrastructure requirements.
3. Obtaining permission(if required under Article 12 (1)) or license(if working with ferrous and non-ferrous metal waste).
4. Obtaining a certificate from RIESVthat the site meets the requirements for the activity.
5. Ensuring proper operating conditions, including compliance with mandatory environmental and sanitary standards.

Compliance with all legal requirements is key, since unregulated activity with secondary raw materials can lead to penalties, cancellation of the license or refusal to carry out the activity.