Secondhand Dealers and Pawnbrokers Act 2004

Licences and certificates - Licences: who must be licensed

6: Secondhand dealers engaged in business to be licensed

You could also call this:

"Secondhand dealers must have a licence to buy and sell used goods in New Zealand."

Illustration for Secondhand Dealers and Pawnbrokers Act 2004

If you want to be a secondhand dealer, you must have a licence. You need a licence if you are in a partnership with others to be secondhand dealers. You are considered to be a secondhand dealer if you buy or sell secondhand goods on six or more days in a year, or if you make more than $2,000 from selling secondhand goods in a year. If you are a secondhand dealer, you must have a licence, unless you are exempt. You are exempt if you are a registered auctioneer, a charity, or an Internet auction provider. You are also exempt if you are an agent of the Crown or another prescribed person. If you do not have a licence and you should have one, you can get a fine of up to $20,000. Just because you take secondhand goods as trade-ins when selling new goods, it does not mean you are a secondhand dealer. You must follow the rules to be a secondhand dealer in New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM305169.

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Part 2Licences and certificates
Licences: who must be licensed

6Secondhand dealers engaged in business to be licensed

  1. Every person who engages in business as a secondhand dealer must hold a licence.

  2. If 2 or more people engage in business as secondhand dealers in partnership, each partner must hold a licence.

  3. For the purposes of this Act, a person is presumed (in the absence of evidence to the contrary) to be engaged in business as a secondhand dealer if the person—

  4. on 6 or more different days within a 12-month period—
    1. buys secondhand articles or scrap metal for purposes other than personal use or enjoyment or as a gift; or
      1. sells or exchanges secondhand articles or scrap metal that was acquired by the person for purposes other than personal use or enjoyment or as a gift; or
      2. within a 12-month period, obtains revenue of more than $2,000 from the sale of secondhand articles or scrap metal that was acquired by the person for purposes other than personal use or enjoyment or as a gift.
        1. For the purposes of this Act, the following are not engaged in business as secondhand dealers when selling secondhand articles or scrap metal:

        2. a registered auctioneer selling secondhand articles or scrap metal in the course of the registered auctioneer's business:
          1. a charitable or non-profit organisation that sells secondhand articles or scrap metal, but only if—
            1. no article, and none of the scrap metal, sold is acquired by the organisation by purchase or for valuable consideration; and
              1. any proceeds of sale are used solely for the purposes of the organisation:
              2. an Internet auction provider:
                1. an agent of the Crown:
                  1. any other prescribed person.
                    1. Acquiring secondhand articles as trade-ins when selling new goods does not of itself indicate that a person is engaged in business as a secondhand dealer.

                    2. A person who carries on business as a secondhand dealer without holding a licence commits an offence and is liable on conviction to a fine not exceeding $20,000.

                    Compare
                    • 1963 No 10 s 3
                    Notes
                    • Section 6(3): replaced, on , by section 5 of the Secondhand Dealers and Pawnbrokers Amendment Act 2013 (2013 No 146).
                    • Section 6(4)(a): replaced, on , by section 28(3) of the Auctioneers Act 2013 (2013 No 148).
                    • Section 6(6): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).