The automotive recycling industry plays a crucial role in environmental sustainability and the economy. If you’re looking to start a business in this sector, becoming an auto parts recycler, also known as an automotive dismantler, can be a rewarding venture. This guide outlines the essential steps to get you started in Alabama, providing a clear pathway to becoming a licensed “all car parts recycler”.
1. Obtain Your NMVTIS Number
Before you can apply for an automotive dismantler license, securing a NMVTIS ID Number is mandatory. NMVTIS, or the National Motor Vehicle Title Information System, is a federal system designed to prevent vehicle theft and fraud.
- Apply for a NMVTIS Number: Visit the NMVTIS Reporting website to begin your application. This number is a prerequisite for your Alabama dismantler license application. Ensure you complete this step as the NMVTIS ID is essential for moving forward.
2. Apply for an Automotive Dismantler License
With your NMVTIS number in hand, the next step is to apply for the official Automotive Dismantler and Parts Recycler License from the Alabama Department of Revenue.
- Alabama Partner Registration: Navigate to the Alabama Partner Registration portal to start your license application online.
- Application Fee: An application fee of $225 is required, payable online via credit card during the application process.
- Surety Bond: A $50,000 surety bond is mandatory. This bond protects the state and consumers and must be on file with the Dealer License section. If it’s not already on file, you will need to submit the signed bond and power of attorney along with your dismantler license transmittal document. The bond form becomes accessible once you’ve completed the electronic application.
3. Register Vehicle Purchases
Maintaining meticulous records is a critical aspect of operating as an automotive dismantler and parts recycler. Alabama law requires a detailed register of all vehicle transactions.
- Purchase and Sales Register: Every automotive dismantler must maintain a register documenting all purchases and sales of motor vehicles. These records must be kept for a minimum of five years from the transaction date. This ensures transparency and compliance with regulations.
4. Apply for a Buyer’s Identification (BID) Card
For individuals involved in purchasing vehicles for dismantling, a Buyer’s Identification (BID) Card is necessary. Alabama limits the number of BID cards per license year.
- Apply for BID Card: Use the same Alabama Partner Registration portal to apply for your BID card.
- Required Documents: Out-of-state applicants must provide a copy of their automotive dismantler and parts recycler license. All applicants need to submit a legible copy of their current driver’s license.
- Application Fee: There is a $10 application fee per BID card.
- Card Limit: A maximum of 3 BID cards are permitted per license year, so plan accordingly for your team’s needs.
5. License Renewal
Automotive dismantler licenses in Alabama operate on a yearly cycle, and timely renewal is essential to maintain your business operations legally.
- License Year: The license year runs from October 1st to September 30th annually.
- Renewal Period: Licenses must be renewed by October 31st each year to avoid penalties.
- Late Fee/Penalty: Licenses renewed after October 31st will incur a penalty of 15% plus applicable interest. Ensure you renew your license before the deadline to avoid these extra costs.
Understanding the Definition
It’s important to understand how Alabama law defines an automotive dismantler and parts recycler.
- Definition: According to Section 40-12-410, Code of Alabama 1975, anyone possessing 10 or more inoperable motor vehicles for over 30 days is presumed to be operating as an automotive dismantler and parts recycler.
- Exemptions: This definition excludes licensed repair businesses holding vehicles for repair, licensed junk dealers recycling scrap metal, entities repairing their vehicles for their own use, or entities disposing of vehicles acquired for their own use.
Final Note
Operating as an automotive dismantler and parts recycler in Alabama requires proper licensing from the Alabama Department of Revenue. Ensure you comply with all regulations to run a legal and successful “All Car Parts Recyclers” business. Licenses are issued by:
Motor Vehicle Division, Dealer License Section
P.O. Box 327643
Montgomery, AL 36132-7643
