When Selling Scrap Becomes a Million-Dollar Liability: Legal Risks of the Informal Market

Introduction to the Risks of the Informal Scrap Market

Improper scrap trading can generate million-dollar liabilities for those involved, especially when conducted through the informal market. The lack of compliance with environmental and tax legislation exposes the business to severe penalties.

Legislation Applicable to the Handling and Trading of Scrap

Provisions of Law No. 12,305/2010, which establishes the National Solid Waste Policy, determine the importance of proper waste management, including recyclable and reusable materials. According to Art. 33, it is the responsibility of generators and those accountable for the waste to ensure environmentally appropriate disposal, always respecting the specifically established regulations.

Furthermore, responsibility for handling is extended by Law No. 9,605/1998, which addresses environmental crimes, non-compliance with which may lead to fines and even criminal penalties.

Legal Risks Associated with the Informal Scrap Market

The informal market often operates without proper registration and licensing, which constitutes an administrative infraction and may be classified as an environmental crime. The absence of documents and controls can lead to material seizure, substantial fines, and legal proceedings that significantly impact finances.

Besides environmental risks, there is the possibility of tax fraud, such as tax evasion, which aggravates the legal liability. The informal market also hinders traceability of waste, violating the provisions of the National Information System on Solid Waste Management (SINIR) provided by the Decree No. 10,936/2022.

Impact of Non-Compliance on the Supply Chain

Integrating informal suppliers into the recycling process compromises regulatory compliance and exposes operations to negative audits. Compliance with legal requirements is essential for the continuity of activities, protecting against fines and reputational damage.

Importance of Proper Disposal and Regulated Collection

Proper waste handling enables the mitigation of legal risks. Formal and regularized collection, according to environmental standards, is mandatory and must be carried out by authorized agents. In the case of safe disposal of media and equipment, adequate sanitization is recommended to protect confidential data, as per guidelines available at HD sanitization.

For electronic waste in general, adopting authorized and scheduled processes contributes to responsible management and compliance with legislation, as detailed in electronic waste collection.

Conclusion

Operating in the informal scrap market poses significant legal risks, especially given the strict environmental legislation and the requirement for control and documentation. Compliance not only prevents substantial financial liabilities but also strengthens governance and the sustainability of operations.