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With the outbreak of the new coronavirus and the Ukrainian War, resource prices, resource shortages, inflation, and price hikes all over the world have increased the national need for purchasing recycled products (secondhand goods) in Japan, and this trend will continue to grow in the future. It is thought that it will continue to rise.
Against the backdrop of this era, the recycled goods (secondhand goods) sales industry, which deals with the distribution of recycled goods (secondhand goods), ranging from high-value-added antiques and old coins to automobiles and daily necessities, has become the “secondhand store” of the past. From the dark image of the industry, it has evolved into a bright image industry.
From companies to individual business owners, there is a tendency to acquire a license to sell recycled products (antique dealers) and expand business sales channels.
1⃣ Outline of Procedures for Recycling (Secondhand Dealer) Permission (① to ④)
① Confirm that the license applicant does not meet the disqualification requirements (requirements for those who cannot obtain a license) under Article 4 of the Secondhand Articles Dealer Act. In the case of a company, confirm that all officers, including auditors, and managers of sales offices do not meet the disqualification requirements.
*Disqualification requirements
1. A person who has not been rehabilitated after receiving a decision to commence bankruptcy proceedings.
2. Being sentenced to imprisonment or a heavier punishment, or being sentenced to a fine for committing a crime prescribed in Article 31 or a crime prescribed in Article 235, 247, 254 or 256, paragraph 2 of the Penal Code; A person for whom five years have not yet passed since the date on which the execution was completed, or the execution ceased.
Note 1) In the case of detention or fines not stipulated in Article 4 of the Secondhand Articles Dealer Law, a secondhand dealer license can be obtained.
Note 2) “Crimes stipulated in Article 31” are crimes of engaging in secondhand goods business without a license, obtaining a secondhand goods dealer’s license by deception or fraudulent means, or lending the name of a secondhand dealer.
Note 3) “Crimes prescribed in Articles 235, 247, 254, or 256, Paragraph 2 of the Penal Code” include theft, breach of trust, embezzlement of lost property, transportation of stolen goods, storage of stolen goods, etc. It is a crime such as receiving stolen goods for a fee.
Note 4) If you have been sentenced to the punishment specified in Article 4 of the Secondhand Articles Dealer Law, you must obtain a secondhand dealer license after 5 years have passed since the execution of the sentence has been completed or after 5 years have passed since the suspension period has expired. You can receive it.
3. Those who have reasonable grounds to believe that they may collectively or habitually engage in violent tortious acts or other illegal acts that constitute crimes as stipulated by the rules of the National Public Safety Commission.
4. A person who has received an order pursuant to the provisions of Article 12 or Article 12-6 of the Law Concerning the Prevention of Unjust Acts by Organized Crime Group Members, or an instruction pursuant to the provisions of Article 12-4, Paragraph 2 of the same law, and the said order or Those who have not passed 3 years from the date of receiving the instruction.
Persons who perform or may perform anti-social acts, such as organized crime group members and their affiliates.
5. A person who has no fixed place of residence. ⇒Those who do not live at the address listed on their resident card.
6. A person whose secondhand goods business license has been revoked pursuant to the provisions of Article 24, and for whom five years have not passed since the date of revocation (if the person whose license was revoked is a corporation, the Including those who were officers of the corporation within 60 days before the date and place were announced and five years have not passed since the date of the revocation.
Note) “Article 24” Violation of the Secondhand Articles Dealer Act
7. Article 8, Paragraph 1, Item 1, during the period from the date on which the date and location of the hearing pertaining to the rescission of permission pursuant to the provisions of Article 24 are publicly announced to the date on which the rescission is made or the date on which it is decided not to be rescinded A person who has returned a permit pursuant to the provisions of 1 above (excluding those who have reasonable grounds for discontinuing the secondhand goods business), and who has not passed five years since the date of said return.
Note) “Article 24” Violation of the Secondhand Articles Dealer Act
8. A person who is stipulated by the rules of the National Public Safety Commission as a person who is unable to properly carry out the duties of a secondhand dealer or secondhand market owner due to physical or mental disability.
9. Minors who do not have the same ability to conduct business as adults. However, this shall exclude cases where the person is the heir of an antique dealer or an antique market owner and the legal representative does not fall under any of the preceding items or item
10. A person who has a reasonable reason for not being recognized to appoint a manager under Article 13, Paragraph 1 for each business office or secondhand market.
② Preparation of application documents and attached documents
Regarding the documents to be submitted for permission application, consult with the police station in charge in advance.
Depending on the police station, there are many cases where the attached documents to be submitted differ depending on the local situation, so it is necessary to consult in advance.
(1) Basic application documents and attached documents
As shown in Table 1⃣ “Individual business” and Table 2 “Corporate business” below
(2) Additional required documents
⇒ⒶOwnership form of business office, ⒷWhen handling automobiles, ©Attached documents when using the Internet.
As shown in Table 3⃣ “When additional documents are required” below.
Table 1⃣ “Individual business”
Documents to be submitted (application documents and attached documents) | Submission applicant |
①Secondhand Dealer License Application Form | Applicant |
②Resume | Applicant and Manager |
③Certificate of residence | Applicant and Manager |
④Written oath | Applicant and Manager |
⑤Identification | Applicant and Manager |
Table 2 “Corporate business”
Documents to be submitted (application documents and attached documents) | Submission applicant |
①Secondhand Dealer License Application Form | Applicant |
②Certificate of corporate history (Certificate of registered matters issued by the Legal Affairs Bureau) | Applicant |
③Copy of Articles of Incorporation (Corporate seal stamp and original certificate required) | Applicant |
④Certificate of residences of all officers (including auditors) and the manager of the sales office | Applicant and Manager |
⑤Identifications of all officers (including auditors) and sales office manager | Applicant and Manager |
⑥Resumes of all officers (including auditors) and sales office manager | Applicant and Manager |
⑦Written oaths of all officers (including auditors) and sales office manager | Applicant and Manager |
able 3⃣ “Cases requiring additional documents”
Required case | Additional documents to be submitted | Contents to prove/clarify |
①Case where the business office is not owned by the ownerⒶ | ・A copy of the lease agreement of the business office, a certificate of all the details of the building issued by the Legal Affairs Bureau, a use consent form, etc. | ・Proof of ownership and authority to use the place of business |
②Case where the business office owner is not the applicantⒶ | ・Consent for use of business office | ・Proof of office usage authorization |
③Case of a home business officeⒶ | ・Office floor plan and location map ・If the business office is a rental property, a document that proves that it is not a residential property (a copy of the lease agreement, etc.) | ・Proof of the actual building structure of the sales office ・Proof that the sales office is a property that can be operated |
④Case where the applicant does not own the storage place when dealing with the sale of used carsⒷ | ・Consent form for used car storage | ・Proof of authorization to use storage location |
⑤Cases dealing with used car salesⒷ | ・Floor plan and location map of used car storage | ・Proof of authorization to use storage location |
⑥Cases using the Internet© See notes 1) to 4) below. | ・Documents clarifying that you have the right to use the URL※ ※ Documents clarifying that you have the right to use the URL Any of the following ① to ③ ①A copy of the domain allocation notification issued by the provider, etc. ②A document that prints out the WHOIS search results screen ③A document that prints out the website screen + a statement of reasons why ① and ② cannot be submitted | ・Clarify of URL usage rights |
Note 1) Notification of URL is required ⇒ When launching a website and conducting transactions, or when operating a store on an Internet auction site.
Note 2) No need to report the URL ⇒ If you launch a website and advertise but do not trade, or if you are selling a single item on an Internet auction site.
Note 3) If notification of the URL is required, notification must be made within 14 days after opening the website.
Note 4) The following 1 to 3 must be described on the top screen of the website where the URL has been notified (Section 2, Article 12 of the Secondhand Articles Dealer Law).
1 Name or Corporate Name
2 Name of the Public Safety Commission
3 Permission number of the permit (12 digits)
③ Submission of documents to the local police station
1. After confirming the submission date and time with the person in charge of the police station in advance, submit the documents for permission application to the police station with jurisdiction on the designated date and time.
2. If there are any deficiencies in the submitted documents, visit the police station with a personal seal for correction so that they can be corrected on the spot.
3. The permission fee of 19,000 yen must be paid in cash, so bring cash with you.
④ Receipt of permit
1. It takes about 40 days for the police station to review the set of permission application documents submitted to the police station.
2. If permission is not granted, the fee of 19,000 yen paid to the police station will not be refunded.
2⃣ Cases that requires a recycled product sales business (secondhand dealer) license and cases that do not require it (Section 2, Article 12 of the Secondhand Articles Dealer Law)
① Necessary Cases
Transactions for buying, selling, renting, or exchanging recycled items (second-hand goods).
Case 1 Purchase and sell old coins.
Case 2 Buy a used car, repair it, and sell it.
Case 3 Buy a used Rolex, disassemble it, and sell usable parts.
Case 4 Buy a used guitar, repair it, and rent it.
Case 5 A jazz coffee shop exchanges a used jazz record CD given by a customer (for business use) for a free coffee coupon worth 10,000 yen.
② Unnecessary cases
Transactions that do not require a permit application when buying, selling, or exchanging recycled items (old items).
Case 1 Sell a Rolex that you purchased for your own use.
Case 2 Selling electronic gift tickets.
Case 3 Selling used Louis Vuitton bags purchased overseas.
Case 4 Purchase and sell cosmetics and liquor.
Case 5 Import and sell used antique furniture from Italy.
3⃣ Recycled product sales business (antique dealer)
– Criminal penalties and administrative sanctions –
Violation of the Secondhand Articles Dealer Law will result in criminal and administrative penalties.
See Table 1⃣ “List of Criminal Penalties/Administrative Penalties/Administrative Dispositions” and Table 2⃣ “List of Public Safety Commission Administrative Dispositions” below.
Table 1⃣ “List of Criminal Penalties/Administrative Penalties/Administrative Dispositions”
Illegal acts | Article | Criminal/Administrative Penalty, Administrative disposition (Penalty law) |
① Unauthorized business ② Name lending ③ Illegal acts that obtain permission by fraudulent means ④ Illegal act of a business suspension order | Article 3 Article 9 Article 24 | Criminal punishment Imprisonment for up to 3 years or a fine of up to 1,000,000 yen (Article 31) |
⑤ Illegal acts of curiosity business restrictions | Article 14 | Criminal punishment Imprisonment for up to 1 year or a fine of up to 500,000 yen (Article 32) |
⑥ Illegal acts of restricting transactions in the secondhand market ⑦ Illegal acts of obligations such as confirmation ⑧ Illegal acts of obligations such as entry in books, etc. ⑨ Illegal acts of obligations such as the preparation of books, etc. ➉ Illegal acts of obligation to report damage to books, etc. ⑪ Illegal acts of the obligation to store product specifications, etc. ⑫ Illegal acts of duty to report equivalent products ⑬ Illegal acts of obligation to store suspended goods ⑭Illegal acts of an order to stop the auction by a secondhand auction broker | Article 14, paragraph 2 Article 15, paragraph 1 Article 16 Article 17 Article 18, paragraph 1 Article 18, paragraph 2 Article 19, paragraph 2 Article 19, paragraph 3, paragraph 4 Article 21 Article 21, paragraph 7 | Criminal punishment Imprisonment of 6 months or less or fine of 300,000 yen or less (Article 33 of the Act) |
⑮ Illegal act of auction sale notification obligation and Illegal act of false statement such as permission application | Article 10 Article 5, paragraph 1 | Criminal punishment Fine of 200,000 yen or less (Article 34) |
⑯ Illegal acts such as refusal to enter ⑰Illegal act of obligation to return permit ⑱ Illegal acts such as carrying a permit ⑲ Illegal act of reporting obligation ⑳ Illegal act of signposting obligation ㉑ Illegal act of change notification obligation | Article 22, paragraph 1 Article 8, Paragraph 1, No. 3 Article 11, paragraph 1, Paragraph 2 Article 22, paragraph 3 Article 12 Article 7 Article 5, Paragraph 3 | Criminal punishment Fine of 100,000 yen or less (Article 35) |
㉒ Illegal act of notifying product quality due to negligence | Article 19, paragraph 5, paragraph 6 | Criminal punishment detention or minor fine (Article 37) |
㉓ Old permit in reissuance of permit Illegal acts related to return obligation | Article 8, Paragraph 3 | Administrative punishment Non‐penal fine of 50,000 yen or less (Article 39) |
㉔ Illegal act of administrator appointment obligation | Article 13, Paragraph 1 | Administrative disposition Business suspension order |
㉕ Illegal act of obligation to report illegal goods | Article 15, Paragraph 2, No.3 | Administrative disposition Business suspension order |
㉖ Illegal acts as instructed ㉗ Illegal acts related to secondhand business | Article 23 | Administrative disposition Business suspension order |
Table 2⃣ “List of Public Safety Commission Administrative Dispositions” below.
Illegal acts | Article | Administrative disposition |
① Non-existence of business for more than 6 months ② Whereabouts of business owner unknown for more than 3 months ③ Applicability of reasons for disqualification for permission is found ④ Illegal acts under the Secondhand Articles Dealer Act by business owners and employees ⑤ Illegal acts against administrative dispositions of the Public Safety Commission | 第6条 | Revocation of permission |
⑥ Cases where it is recognized that the illegal acts of (4) and (5) above may hinder the prevention of the sale of stolen goods, etc. or the prompt detection of stolen goods, etc. | Article 24 | Business suspension order |
⑦ Cases in which the public safety commission warns illegal acts in writing to take necessary measures to conduct proper business in response to the act that caused the suspension of business. | Article 23 | Instructions |
Tokyo Duke-Rei Certified Administrative Procedures Legal Office handles the application procedures for recycling (secondhand dealer) licenses (new/renewal) on your behalf.
Compensation regulations
1⃣ When receiving a request, we ask that you pay the full amount as a deposit for remuneration of 100,000 yen (excluding tax) or less. Please note that we may ask you to pay the actual cost in advance.
2⃣ When receiving a request, for remuneration over 100,000 yen (excluding tax), we ask that 50% of the remuneration amount be paid as a deposit at the time of request. In addition, we ask that you pay the remaining 50% and the actual cost settlement amount when the work is completed. Please note that we may ask you to pay the actual cost in advance.
3⃣ Please note that we will not refund the start fee if the work is completed in the middle due to the client’s convenience.
Estimated reward
1⃣ Consultation by face-to-face: @ 5,000 yen per hour (excluding tax)
2⃣ Recycled product sales business (secondhand dealer) license
: Basic remuneration 1 application ¥50,000 (excluding tax), police station payment fee ¥19,000 (separately)
Note 1) Simple consultations for the same project after the start are free of charge (within 30 minutes per session), but consultations that ask for answers to the permission application form and attached documents that are underway are strictly prohibited.
Note 2) When applying for permission, if you go to a police station outside of Tokyo (excluding remote islands) or if you need to go on a local business trip, a daily allowance of ¥ 5,000 per hour (excluding tax) and actual expenses such as transportation and travel expenses may be added.
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