Dealer - License for Automotive Dismantler and Recycler (ADR) or Scrap Processor
The questions and answers provided below relate to issuing, renewing, changing and correcting a business license for an automotive dismantler and recycler (ADR) or scrap processor. If you are unsure about the type of license for which you should apply, refer to the Summary of Dealer Types.
Each of the following procedures is separately discussed below in answer to a commonly asked question. Either scroll down to the appropriate question and answer, or click on the procedure in which you are interested.
- Issuing a New License
- Renewing a License
- Changing Information on the License
- Correcting Information on the License
- Requesting a Duplicate License
- Obtaining MVA Forms
- Going Out of Business
- Fee information is available on a separate schedule of fees.
For telephone questions:
MVA Customer Service Center:
Contact the Business Licensing and Consumer Services (BL&CS) Unit either by phone or by mail and indicate that you are interested in opening a new facility. The unit will send you a packet of forms to be completed, as well as instructions for other actions that you must take in order to be licensed to be an automotive dismantler and recycler (ADR) or scrap processor. Typically, you must submit the following documentation:
- License Application for Automotive Dismantler & Recycler or Scrap Processor – 2 Year License– This form must be fully completed (front and back) and signed and dated by all dealership officers, partners, or owners (licensees). Be sure to include your Federal Employer Identification Number (FEIN) and the Social Security Numbers of all officers/partners/owners.
- Zoning Approval Form- A zoning official from the jurisdiction where the facility will be located must sign the form confirming that the property is zoned appropriately for an ADR or scrap processor.
- Proof of Worker’s Compensation coverage or exemption from coverage requirements- If you have Worker’s Compensation insurance, only information about the policy is required. The information must be recorded on the Application form and on the Insurance Information form. If you are exempted from having to have Worker’s Compensation coverage, then one of the following sets of documents must be submitted:
- a copy of your Application for Certificate of Compliance to the Worker’s Compensation Commission and a completed and signed Exclusion Form. OR
- a copy of the Certificate of Compliance issued to you by the Worker’s Compensation Commission.
- Criminal background checks - A Maryland criminal background check is required for all officers, partners, owners (licensees) and others who have a financial interest in the business. In addition, if any of the licensees or other person with a financial interest in the business resides outside of Maryland, or has lived in Maryland for less than 1 year, then their current/former state of residence also must conduct a criminal background check. A background check from a private company will be accepted if the Maryland State Police licenses the company as a Private Investigation Agency. The results of these other state criminal background checks must be submitted.
- Trader’s License (copy) - This License can be obtained from the Circuit Court in the jurisdiction where the facility is located.
- Business registration letter- This document can be obtained from the Maryland State Department of Assessments and Taxation (SDAT). It verifies that your company is licensed to do business in the State of Maryland. All applicants must register with the SDAT, even if they are based in another state. Both corporate and trading names must be registered. You may use the printout that can be obtained from the SDAT website.
- Insurance Information Form – This form certifies that you have vehicle liability insurance for the vehicles you will be using and, if required, Worker’s Compensation insurance for your employees.
- Other Forms – Additional forms may be needed depending upon your situation:
- Use and Occupancy Permit– This form is needed if you will be using a trailer as an office or the local zoning board requires that you obtain the Permit.
As part of the BL&CS review process, an MVA investigator will visit your proposed facility location to confirm that it meets all location requirements established by State law. Once your Automotive Dismantler and Recycler or Scrap Processor License has been approved, the BL&CS will contact you about how to pay for and obtain the Automotive Dismantler and Recycler or Scrap Processor License, the interchangeable license tags you requested, and other forms and items needed to operate a ADR or scrap processor business.
The Business Licensing and Consumer Services (BL&CS) Unit will mail you a renewal packet about 60 days prior to the expiration date of your license. If you do not receive a renewal packet, please contact the BL&CS.
Complete the Business License Renewal form and submit it to the BL&CS, along with all applicable fees and, as applicable, the documents listed below. You must submit these items at least 15 working days prior to your license expiration date. Note that the MVA will assume your dealership is going out of business if you do not request renewal before your expiration date.
- Business License Renewal form
- Trader’s License(copy) – Be sure that the current year’s License is copied.
- Copies of flag releases– You will be notified of any outstanding flags with the renewal packet.
- Explanation of MVA administrative actions– If any administrative actions have been taken or are pending against your company, you will be asked to submit a written statement.
- Notice of criminal convictions– If any officers, partners, or owners (licensees), or other persons with a financial interest in your company have been convicted of a criminal offense, you will be asked to submit a written statement explaining the situation.
Once your renewal request has been approved, the BL&CS will mail a new Automotive Dismantler and Recycler or Scrap Processor License and interchangeable tag renewal slips to you..
Maryland law requires that you report all changes affecting your Automotive Dismantler and Recycler or Scrap Processor License to the MVA within 30 days after the change occurs. If the change occurs during your license renewal period, you may indicate the change on the Business License Renewal form that will be sent to you prior to the license expiration date. Otherwise, contact the Business Licensing and Consumer Services (BL&CS) Unit either by phone or by mail to report the changes.
The BL&CS will send you a packet of forms to be completed, as well as instructions for other actions that you must take in order to request the change. The documents required vary by the type of change involved.
Once your change request has been approved, the BL&CS will mail you a new Automotive Dismantler and Recycler or Scrap Processor License, and/or corrected registration cards for your interchangeable tags.
Contact the Business Licensing and Consumer Services (BL&CS) Unit, as soon as possible, and report the corrections needed. The unit will send you a packet of forms to be completed, as well as instructions for other actions, if any, that you must take in order to request the corrections.
Once your correction request has been approved, the BL&CS will mail you a new Automotive Dismantler and Recycler or Scrap Processor License, and/or corrected registration cards for your interchangeable tags, if these items needed correction. Some corrections will not require the reprinting of these documents (e.g., your company’s phone number).
Contact the Business Licensing and Consumer Services (BL&CS) Unit and request an Application for Duplicate Vehicle Dealer’s and/or Salesperson’s License. Written requests will be accepted when submitted on company letterhead and accompanied by the appropriate fee.
Once your duplicate request has been approved, the BL&CS will mail the duplicate license.
You may obtain a variety of forms needed to operate your dealership from the MVA’s Warehouse. The forms should be ordered in advance. The request may be submitted by email and must be on company letterhead and include the following information:
- Company address
- Phone number
- Contact person
- Dealer license number
- Form number requesting
- Form title
- Quantity requested
- Pick up or delivery
If you will be picking up your request, please indicate the date and time for the pick up. The deliveries will be made by UPS and will not be made to P.O. boxes.
If the forms are not available when you place the order, the MVA Warehouse will notify you as to when they will be available. You will not have to resubmit the order. It will be filled when the forms are available.
If you are forced out of business, the Business Licensing and Consumer Services (BL&CS) Unit will contact you. Otherwise, contact the BL&CS and indicate that you are going out of business. The BL&CS will advise you which materials must be returned to the MVA. Typically, you must return the following items which are considered State properties:
- Automotive Dismantler and Recycler or Scrap Processor License- This document is often referred to as a “wall license”.
- Interchangeable tags- All tags must be returned to an MVA branch office. The receipts showing that you returned the tags then must be submitted to the BL&CS.
- Unused inventory stickers– these are referred to as “B” numbers.