Refrigerant Trading Authorisation and Online Sales to Unlicensed Buyers
A small refrigeration wholesaler holds a Refrigerant Trading Authorisation and sells R-32 and R-410A cylinders online. A regular customer, a handyman with no refrigeration licence, orders two 10 kg R-32 cylinders for 'home aircon work'. The order is placed through the website, which has a checkbox asking buyers to confirm they hold a licence but does not verify it. The handyman ticks the box. The wholesaler's dispatch clerk packs the order. Separately, a licensed refrigeration mechanic orders one 10 kg cylinder but asks for delivery to a residential address and for the cylinder to be left at the front door if no one is home. The wholesaler's authorisation conditions require that sales of regulated refrigerant be made only to persons who hold the appropriate licence or authorisation, and that records be kept.
1. Assess whether the wholesaler may lawfully supply the handyman and what the authorisation requires in practice.
Read the worked answer
The wholesaler may not supply the handyman. A Refrigerant Trading Authorisation permits the holder to buy, sell and store regulated refrigerant, but it does not permit supply to a person who is not licensed or authorised to handle it. The handyman has no Refrigerant Handling Licence and is not an authorised business, so the sale would breach the authorisation conditions. A checkbox that the buyer ticks is not adequate verification: the wholesaler must take reasonable steps to confirm the buyer's licence number and status before dispatch, for example by recording the licence number and checking it against the relevant register, or by requiring evidence for first-time or unusual orders. The dispatch clerk should hold the order, request the licence details and, if none are provided, refuse the sale and refund. The two 10 kg cylinders are a large quantity for a handyman, which is a further red flag. The wholesaler should also record the refusal.
2. The licensed mechanic's delivery request raises separate issues. Explain the risks and the correct handling.
Read the worked answer
Supply to a licensed mechanic is permitted, but the delivery request creates risks that the authorisation holder must manage. Leaving a refrigerant cylinder unattended at a front door means it could be taken by an unlicensed person, stored incorrectly, or damaged, and the wholesaler would have lost control of a regulated substance. The wholesaler should require a signature on delivery by a person who can be identified as the licensee or their representative, or deliver to the mechanic's business address during business hours. The cylinder must be transported upright and secured, and the wholesaler should confirm the delivery address is consistent with the buyer's business. If the mechanic insists on a residential drop, the wholesaler can agree only with signed receipt and clear instructions that the cylinder must not be left unattended. Records should show who signed, the date and the cylinder serial number.
3. Describe the record-keeping the wholesaler must maintain for these transactions and why it matters.
Read the worked answer
For each supply the wholesaler should record the date, the buyer's name and business, the buyer's licence or authorisation number, the refrigerant type and quantity, the cylinder serial numbers, and the delivery details including who signed. For refused or held orders, the reason should be noted. These records demonstrate that the authorisation holder took reasonable steps to supply only to licensed persons, support traceability if a cylinder is later misused, and are the evidence an auditor would examine. Records should be retained for the period required by the authorisation conditions and kept secure. Good records also protect the wholesaler commercially: if the handyman later claims he was entitled to buy, the wholesaler can show the order was held pending verification. The record system should be reviewed when the website is updated so that online orders cannot bypass verification.