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| Washington – Scrap Metal Processor ($10,000) Bond |  |
| Washington – Scrap Metal Recycler ($10,000) Bond | |
Introduction
The Washington scrap metal industry plays a vital role in the state’s economy and environmental sustainability efforts by facilitating the recycling and repurposing of metal materials. Businesses in this sector include scrap metal processors, recyclers, and suppliers, who handle everything from household appliances and industrial equipment to automotive parts and construction materials.
Due to concerns over metal theft and illegal sales, Washington State has established strict regulatory requirements under RCW 19.290. These rules aim to ensure transparency, accountability, and lawful operation within the industry. One key requirement for doing it legally is getting a Washington Scrap Metal License—and in most cases, a surety bond is also required to provide financial assurance of compliance.
Explanation: Washington Scrap Metal Bond
A Washington Scrap Metal Bond is a type of surety bond required by the Washington State Department of Licensing (DOL) for individuals or businesses engaged in the purchase, sale, or recycling of scrap metal in the state. The bond acts as a financial guarantee that the scrap metal business will operate in compliance with all applicable state laws and regulations, particularly those outlined in RCW 19.290.
Purpose of the Bond
The main goal of the Washington Scrap Metal Bond is to:
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Protect the public and government from fraudulent, illegal, or unethical practices by scrap metal dealers.
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Ensure payment of fines, penalties, or restitution if the dealer violates regulations.
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Provide recourse for customers, suppliers, or the state who suffer financial harm due to a dealer’s misconduct or non-compliance.
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Who Needs the Bond?
Under Washington law, the following businesses must be licensed and bonded:
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Scrap Metal Processors
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Scrap Metal Recyclers
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Scrap Metal Suppliers
If your business buys, sells, or processes scrap metal, you are likely required to obtain this bond as part of your licensing process.
Bond Amount
As of current Washington regulations, the required bond amount is $10,000. This is the amount available to cover valid claims filed against the bond.
Parties Involved in the Bond
- Principal – The scrap metal business or applicant.
- Obligee – The Washington State Department of Licensing (DOL).
- Surety – The bonding company that provides the bond and guarantees compensation if the principal fails to comply.
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Step-by-Step Guide to Obtaining a Scrap Metal Bond
Obtaining a Washington Scrap Metal Bond is a crucial step for businesses engaged in the buying, selling, or processing of scrap metal. This surety bond ensures compliance with state laws and offers financial protection to the public in case of regulatory violations. Here’s a step-by-step guide to help you through the process:
Step 1: Determine Bond Requirements
Check with the Washington State Department of Licensing (DOL) to verify:
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Whether your business is classified as a scrap metal processor, recycler, or supplier.
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The required bond amount, typically:
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$10,000 for Scrap Metal Processors or Recyclers.
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$1,000 for Scrap Metal Suppliers.
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Step 2: Choose a Licensed Surety Provider
Select a state-approved surety company like Swiftbonds to issue your bond. Ensure the provider:
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Is authorized to issue bonds in Washington.
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Specializes in contractor or industry-specific bonds.
Step 3: Complete the Bond Application
Submit an application that includes:
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Legal business name and contact information.
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Type of scrap metal business (processor, recycler, supplier).
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Business license or registration details.
Swiftbonds offer an online application form for fast processing.
Step 4: Undergo a Credit Check
The surety company will evaluate your personal or business credit history. A good credit score can lead to:
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Lower premium rates (typically 1%–5% of the bond amount).
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Faster approval.
If you have poor credit, Swiftbonds offers programs for high-risk applicants.
Step 5: Pay the Bond Premium
Once approved, you’ll receive a quote. Pay the premium to activate your bond.
Step 6: Receive and File the Bond
After payment:
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The surety will issue the official bond form.
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Submit the bond to the Washington State Department of Licensing (DOL) along with your scrap metal license application or renewal.
Step 7: Maintain and Renew the Bond
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Scrap metal bonds are typically valid for one year.
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Ensure timely renewal to avoid license suspension or penalties.
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Conclusion
Securing this bond is not only a legal requirement for licensure but also a demonstration of credibility and professionalism in the scrap metal trade. By obtaining the bond through a trusted provider like Swiftbonds, businesses can streamline the process, access competitive rates, and ensure compliance with ease.
Frequently Asked Questions (FAQs)
Here are some common questions and answers related to the Washington Scrap Metal Bond:
Is the Washington Scrap Metal Bond required for all scrap metal businesses?
Yes, if you are involved in the purchase, sale, or processing of scrap metal in Washington, you are legally required to obtain a scrap metal bond. This includes both new and existing businesses. Having a valid bond ensures you remain compliant with Washington State’s scrap metal regulations.
How long does the bond last?
The Washington Scrap Metal Bond is generally valid for one year. It needs to be renewed annually to keep your license active and comply with state laws.
Can I get a bond with poor credit?
Yes! Even if you have poor credit, you can still obtain a Washington Scrap Metal Bond. Some surety providers, such as Swiftbonds, offer special programs for high-risk applicants. However, the premium rate may be higher.
What happens if I violate scrap metal laws while holding a bond?
If your business violates state regulations, a claim can be made against your bond. This may happen if you:
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Engage in illegal transactions.
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Fail to adhere to licensing requirements.
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Violate state scrap metal laws.
If a claim is made, the surety company may pay out to cover damages, but you will be responsible for reimbursing the surety.
How do I renew my Washington Scrap Metal Bond?
To renew your bond, simply contact your surety provider to process the renewal. You will need to pay the premium for the next year to keep your bond active and in compliance with state requirements.
Can the bond be canceled?
Yes, but canceling the bond before the expiration date can have consequences. Typically, if the bond is canceled early, the surety company must be notified in writing. If your business ceases operations, you may need to submit evidence to the Washington Department of Licensing. Keep in mind that cancelling the bond may impact your business license.