SECOND-HAND GOODS ACT 6 OF 2009

Records by dealers (Section 21)

Q: What is the core record-keeping duty imposed on a dealer by Chapter 4?
A: Unless the Act provides otherwise, a dealer must keep a register in the prescribed form and must record in that register the prescribed particulars regarding every acquisition or disposal of second-hand goods. (Section 21(1))

Q: What minimum information must the register include about the person from whom goods are acquired?
A: The register must at least include particulars about that person’s identity, namely the person’s full names, contact address and contact telephone number; the manner in which the person’s identity was verified; and the person’s identity number. (Section 21(2)(a)(i)–(iii))

Q: What minimum information must be recorded about the goods themselves?
A: The register must at least include a description of the second-hand goods and the serial number or distinguishing mark or feature of the second-hand goods. (Section 21(2)(b))

Q: Must the dealer record the price paid for the goods?
A: Yes. The register must at least include the purchase price paid by the dealer. (Section 21(2)(c))

Q: Must the dealer assign an internal number to the goods and record it?
A: Yes. The register must at least include the number assigned to the second-hand goods by the dealer. (Section 21(2)(d))

Q: Must the register show which staff member handled the transaction?
A: Yes. The register must at least include the name and signature of the person who conducted the transaction on behalf of the dealer. (Section 21(2)(e))

Q: What timing and disposal/sale details must be recorded?
A: The register must at least include the date and time of the transaction, the date on which the second-hand goods were sold, or an account of how and when the second-hand goods were otherwise disposed of. (Section 21(2)(f))

Q: When are separate registers required?
A: If the certificate of registration is issued with a condition requiring separate registers, separate registers must be kept for the acquisition and disposal of different classes of second-hand goods. (Section 21(3))

Q: What must a person provide when they acquire second-hand goods from a dealer or dispose of goods to a dealer?
A: They must furnish the dealer with their full name, physical address, and an original identity document or passport as proof of identity. (Section 21(4))

Q: What must the dealer do with the identity document or passport presented?
A: The dealer must obtain and keep a copy of the identity document or passport. (Section 21(5))

Q: How long must the dealer keep the register and the copies of identity documents/passports?
A: The dealer must retain the register and copies of the documents for a period of not less than five years, calculated from the date of the relevant transaction. (Section 21(6))

Q: When must the dealer make the entry in the register for an acquisition or disposal?
A: Every entry in the register for an acquisition or disposal must be made contemporaneously with the acquisition or disposal in question. (Section 21(7))

False information and stolen goods (Section 22)

Q: When does a duty to report arise under Chapter 4?
A: A duty to report arises if a dealer suspects, or on reasonable grounds should suspect, that any name, address or document furnished is false; or that goods (or goods for pawn) offered are stolen goods; or that the appearance or aspects of an item offered have been tampered with (or there was an attempt to alter them) to conceal the identity of the item. (Section 22(1)(a)–(c))

Q: To whom must the dealer report, and how quickly must the dealer report?
A: The dealer must immediately report the matter to a police official on duty at the police station in whose area the dealer carries on business. (Section 22(1))

Q: What must the police official do after receiving such a report?
A: The police official must take down the report in the prescribed manner and must immediately provide the person who made the report with the prescribed acknowledgement of receipt. (Section 22(2))

Q: If a person must report a suspicion under section 22(1), may they proceed with the transaction?
A: No. A person required to make a report in terms of section 22(1) concerning a suspicion that any other person intends to commit or has committed an offence in terms of the Act may not continue with and carry out any transaction to which the suspicion relates. (Section 22(3))

Q: What must happen to the report after it is taken down by the police official?
A: The police official who takes down the report must immediately provide the designated police officer with a copy of the report, together with any particulars regarding the registering of any investigation dockets arising from the report. (Section 22(4))

Q: Does section 22 only apply when the dealer has actual suspicion, or also when they should have suspected something?
A: It applies in both situations: when the dealer suspects, or when on reasonable grounds the dealer should suspect, the listed issues. (Section 22(1))

Restrictions on dealers and pawnbrokers (Section 23)

Q: May a dealer acquire goods from, or accept goods in pawn from, a person under 18?
A: No. A dealer may not acquire or accept in pawn goods from any person under the age of 18. (Section 23(1)(a))

Q: May a dealer store goods anywhere other than the registered premises?
A: No. A dealer may not store goods elsewhere than on the premises for which a certificate has been issued in terms of the Act. (Section 23(1)(b))

Q: Is a dealer allowed to take possession of goods from a seller if the dealer is not satisfied about ownership or authority to sell?
A: No. A dealer may not take into possession goods unless the dealer is convinced on reasonable grounds that the seller is the owner or titleholder, or is duly authorised to dispose of the goods. (Section 23(1)(c))

Q: Is there a waiting period after acquiring goods before the dealer may deliver them to someone or change their form/appearance?
A: Yes. A dealer may not deliver goods acquired by the dealer to a person, or change the form or alter the appearance of the goods, until after the expiration of seven days from the date of acquisition. (Section 23(1)(d))

Q: Does the seven-day restriction affect how goods must be stored?
A: Yes. During the seven-day period (or during any period that pawned goods are subject to a pledge), the articles must be kept separate from all other goods of the same or similar kind and description. (Section 23(2))

Q: May a pawnbroker accept firearms or ammunition in pawn?
A: No. A dealer may not accept in pawn any firearms or ammunition as defined in section 1 of the Firearms Control Act, 2000 (Act 60 of 2000). (Section 23(1)(e))

Q: Does the separation requirement apply only to bought goods, or also to pawned goods?
A: It applies to both: it applies during the seven-day period referred to in section 23(1)(d) and also during any period that any pawned goods are subject to a pledge. (Section 23(2))