Scrap trading in Dubai has significant potential due to the city’s robust infrastructure and logistics capabilities. As Dubai’s construction and industrial sectors thrive, substantial scrap materials are generated, creating a consistent scrap trading demand. In addition, environmental sustainability and waste management further drive the need for proper scrap disposal and recycling. You can trade various types of scrap, including metals, paper, plastics, and electronic waste.
4669.00 Wholesale of waste and scrap and other products n.e.c.
Apply for your business license under Other specialized Wholesale and choose the business activity wholesale of waste and scrap and other products n.e.c. with activity code 4669.00.
Wholesale of waste and scrap, as well as other products, refers to the business activity of buying and selling these items in bulk quantities. You can include various types of waste and scrap materials such as metal, paper, plastic, electronic waste, and other recyclable materials. Additionally, “other products” may encompass a wide range of goods bought and sold in large quantities, including items like wholesale merchandise, surplus goods, excess inventory, and more.
4669.75 Scrap & Metal Waste Trading
Apply for your business license under wholesale of waste and scrap and other products n.e.c. and choose the business activity Scrap & Metal Waste Trading with activity code 4669.75.
Your Scrap & Metal Waste Trading license allows you to engage in the collection and trade of nonhazardous metal scrap, which is obtained from households, industrial establishments, and agricultural facilities after its use.
4669.77 Aircraft Scrap & Used Spare Parts Trading
Apply for your business license under wholesale of waste and scrap and other products n.e.c. and choose the business activity Aircraft Scrap & Used Spare Parts Trading with activity code 4669.77.
You can resale aircraft scrap and used spare parts with your Aircraft Scrap & Used Spare Parts Trading license. You can acquire these items by dismantling and scrapping old aircraft. As a licensee, you can trade these specific goods, offering them for sale to customers in the aviation industry or other relevant sectors.
Inclusions
Your trade license for Scrap Trading (4669.00, 4669.75 & 4669.77), encompasses the wholesale of various products. This includes industrial chemicals such as aniline, printing ink, essential oils, industrial gases, chemical glues, colorants, synthetic resin, methanol, paraffin, scents, flavorings, soda, industrial salt, acids, sulfurs, starch derivatives, and more. The license also covers wholesale trade in fertilizers, agrochemical products, plastic materials, rubber, textile fibers, paper in bulk, metal and non-metal waste, and scrap for recycling, as well as materials for collecting, sorting, separating, packing, repacking, storing, and delivering. However, it does not involve a process of real transformation. Furthermore, your license permits dismantling of automobiles, computers, televisions, and other equipment only to obtain reusable parts for resale.
Exclusions
Certain activities are explicitly excluded from your scrap trading (4669.00, 4669.75 & 4669.77) license under wholesale of waste and scrap and other products not elsewhere classified (n.e.c.). These exclusions include the collection of household and industrial waste and treating waste not intended for further use in an industrial manufacturing process but for disposal. Additionally, the processing of waste and scrap, and other articles into secondary raw materials is excluded unless a genuine transformation process is involved, resulting in secondary raw materials suitable for direct use in an industrial manufacturing process (but not as final products). Furthermore, your license does not cover dismantling automobiles, computers, televisions, and other equipment for material recovery. The shredding of cars using a mechanical process, ship-breaking, and the retail sale of second-hand goods are also not included within the scope of your license.
Third-Party Approvals
To conduct Scrap Trading (4669.00, 4669.75 & 4669.77) in Dubai, the business requires third-party approvals. Business activity 4669.00, encompassing the Wholesale Of Waste And Scrap And Other Products N.E.C., as well as activity 4669.75, involving Scrap & Metal Waste Trading, necessitate third-party approval from the Dubai Municipality (DM) after obtaining the business license. For those engaging in activity 4669.77, Aircraft Scrap & Used Spare Parts Trading, third-party approval from the Dubai Civil Aviation Authority (DCAA) is mandatory before obtaining the business license.
ESR & UBO
Scrap Trading businesses with activity codes 4669.00, 4669.75, and 4669.77 are exempt from UBO (Ultimate Beneficial Ownership) and ESR (Economic Substance Regulations). UBO refers to the identification and reporting of individuals who have ultimate ownership or control over a business entity, while ESR pertains to regulations that require businesses to demonstrate legitimate economic activity and substance within the jurisdiction where they operate.
AML
Anti-Money Laundering (AML) regulations do not apply to Scrap Trading activities under codes 4669.75 and 4669.77. However, it is important to note that AML regulations do apply to activity 4669.00, specifically, the Wholesale Of Waste And Scrap And Other Products N.E.C. AML regulations in Dubai primarily focus on preventing and detecting money laundering and terrorist financing activities.
