Becoming a licensed car parts dismantler and recycler in Alabama involves a structured process to ensure compliance and legitimacy in the automotive recycling industry. If you’re looking to enter this field, understanding and fulfilling these requirements is crucial. This guide outlines the essential steps to get you started.
Licensing and Application Process
To legally operate as an automotive dismantler and parts recycler in Alabama, obtaining the necessary license from the Alabama Department of Revenue is mandatory. The first critical step in this process is acquiring a National Motor Vehicle Title Information System (NMVTIS) ID Number. This NMVTIS number is absolutely required for your application.
1. Obtain Your NMVTIS Number:
Before anything else, apply for your unique registration number from the National Motor Vehicle Title Information System. You can apply directly through the NMVTIS Reporting website. Having this number is a non-negotiable prerequisite for your Alabama dismantler license application.
2. Apply for Your Alabama License:
Once you have your NMVTIS number, proceed to apply for the Automotive Dismantler and Parts Recycler License through the Alabama Department of Revenue’s online portal, known as Alabama Partner Registration.
3. Application Fee and Surety Bond:
There is a non-refundable application fee of $225, payable online using a credit card during the application process. Additionally, you are required to secure a $50,000 surety bond. Ensure the bond includes a Power of Attorney. If this bond is not already on file with the Dealer License section, you must submit the signed bond and power of attorney along with your dismantler license transmittal documents. The specific bond form will be accessible after you complete the electronic application.
Registering Vehicle Purchases
Maintaining meticulous records is a key aspect of operating as a licensed car parts dismantler and recycler. Alabama law mandates that every licensed operator must keep a detailed register of all motor vehicle purchases and sales. These records must be retained for a minimum of five years from the transaction date. This register serves as an important audit trail and helps ensure accountability in your business operations.
Obtaining a Buyer’s Identification (BID) Card
For individuals authorized to purchase vehicles on behalf of your licensed dismantling business, a Buyer’s Identification (BID) Card is necessary.
1. Apply for a BID Card:
Applications for BID Cards are also processed through the Alabama Partner Registration portal.
2. Required Documents and Fee:
When applying for a BID card, you will need to provide a copy of your automotive dismantler and parts recycler license (only required for out-of-state applicants). Furthermore, a clear copy of the applicant’s current driver’s license is mandatory. Each BID card application incurs a fee of $10. Note that there’s a limit of three BID cards per license year.
License Renewal Information
Staying compliant with your licensing is an ongoing responsibility. Here’s what you need to know about renewals:
- License Year: The license year for automotive dismantlers and parts recyclers in Alabama runs from October 1st through September 30th.
- Renewal Period: Licenses must be renewed annually by October 31st to remain active and in good standing.
- Late Renewal Penalties: Failing to renew your license by the October 31st deadline will result in a late fee. Licenses renewed after this date are subject to a penalty of 15% along with applicable interest charges. It’s crucial to prioritize timely renewal to avoid these additional costs.
Definition of Automotive Dismantler and Parts Recycler
It’s important to understand the legal definition of an automotive dismantler and parts recycler in Alabama. According to Section 40-12-410 of the Code of Alabama 1975, an entity is presumed to be operating as an automotive dismantler and parts recycler if they possess ten or more inoperable motor vehicles for more than 30 days. This definition specifically excludes licensed repair businesses holding vehicles for repair purposes and licensed junk dealers who are recycling vehicles for scrap metal. It also does not include entities repairing or reconditioning their own vehicles for internal use or disposing of vehicles acquired for their own operational needs.
Licensing Authority: Remember, engaging in the business of an automotive dismantler and parts recycler in Alabama without a valid license from the Alabama Department of Revenue is illegal. Licenses are issued by the Motor Vehicle Division, Dealer License Section, located at P.O. Box 327643, Montgomery, AL 36132-7643.
By following these steps and adhering to the regulations, you can successfully establish and operate a compliant car parts dismantling and recycling business in Alabama.
