Here is the official procedure for obtaining a junk dealers license in the city of Detroit.

Junk License Procedure

  • Obtain a Surety Bond (for the value of $2000) from an insurance or bonding agency.
  • Have the agency call us at 224-3179 to have our bonding form emailed to them. Note: the agency must print the form on legal size paper.
    This form must be completely filled out.
  • Bring the Surety Bond form to CAYMC Rm 105 Business License Center.
  • You will be sent to the Law Department (First National Bldg Rm 1650) for law department approval.
  • After Law Dept approval, return to the Business License Center for license $50 cash and a valid drivers license.
    
    You will be sent to the Police Department for vehicle inspection, $25.
    The button will cost $20.
    Inspection questions call (313) 596-5584



Here is a better explanation from one of the local yards. 2012 Detroit Junk License Procedure


How to acquire a Junk License
Posted on February 25, 2012 by Admin

2-25-2012

As you probably already know, the City of Detroit has been dealing with a scrap metal theft problem. In an effort to fight this problem, the city wants everybody selling scrap metal to obtain a junk dealer’s license. While we do not require customers to have a Junk License to sell their material at our yard, it is definitely worthwhile to have one if you scrap on a regular basis. Having a Junk License could save you time, money, and aggravation as police officers in Detroit have been regularly pulling over and ticketing vehicles hauling scrap metal that do not have a junk license.



Junk licenses can be obtained at the Coleman A. Young Municipal Center through the Business License Center which is in room 105. Before you go there however, you will have to obtain a surety bond through on of your insurance providers or a bonding agency. You are required to have a surety bond for the value of $2000, of which you will have to pay up to 10%( $200). The bonding agency must also fill out a bonding form that you must bring with you once completely filled out to the business license. Your bonding agency can receive this bonding form via e-mail by calling the Business License Center at (313)224-3179.

After you have obtained a surety bond and turned the bonding form into the business license center, they will send you to the law department in the First National Building where you must receive law department approval. Once you are approved by the law department, you will return to the Business License Center with $50 cash and a valid driver’s license to obtain your Junk License. The final step in the process is passing a vehicle inspection at the Police Department. The cost of the inspection is $25. Once you have passed the inspection you can obtain your junk plate and button for $20, and you are ready to start scrapping.

Junk Licenses expire every year at the end of March. We strongly suggest you start the process for this year’s license as soon as possible as the Business License Center will be very busy once they expire. Also, we plan on instituting a rewards plan where bringing scrap metal to our yard with your valid 2012 Junk License will earn you reward points which can be redeemed for reimbursement for the $95 cost of the license. We will post more details on this program at the beginning of April. The City of Detroit also has a downloadable form on their website with step by step procedures for obtaining a Junk License with all of the necessary room numbers and phone numbers.