Federal regulations for automobile destruction and salvage
Where auto recycling and salvage are concerned, each state usually sets its own control mechanism, since there are no distinct regulations at the federal level. However, there are a few federal guidelines that you should follow, if you operate or own auto salvage or recycling yard, and you want to register salvaged automobiles, in order to adhere to the National Motor Vehicle Title Information System (NMVTIS), and the Environmental Protection Agency.
Whenever auto recycling and salvage yards get vehicles, it is essential that they report it to the NMVTIS. This is necessary since the Vehicle Identification Number (VIN) is entered into the national database so that vehicles that will no longer be road worthy can be identified. This also helps to prevent title fraud, and auto theft. Due to this practice, we recommend that auto recycling yards use this database, as a point of reference before accepting any new vehicles.
Auto recycling yards are required to report each processed vehicle each month. The report they submit should include the contacts of the business, the name, and address, as well as the VIN. The person from whom the yard received the vehicle, as well as, the date of receipt are also necessary. In addition to these, information regarding whether the car is to be sent abroad and a written statement of the car’s status are to be provided.
There are some exceptions to compliance with monthly reports, as requested by the NMVTIS. These include cases where vehicles have been professionally appraised independently, and are not considered salvage or junk items.
An operation is considered small when it processes five or less vehicles in total each month. For these salvage companies, a report is not required. They especially do not need to report to the NMVTIS if they have already made a report to the state. It is recommended, however, that they follow up with the state.
One way in which respect for the environment is demonstrated, is through legislature provided to govern the recycling process. Most recycling and salvage locations are given information, and updated as to how to properly recycle and dispose of items such as scrap metal, batteries, used oil, and tires. Failure to comply with these guidelines which have been provided to deal with these environmental threats can leave a salvage yard open to heavy fines being imposed. In some cases, they may even end up losing their licenses.