If you operate a recycling center or trade in scrap materials and need your NAICS code, the answer depends on whether you focus on sorting or selling.
The primary NAICS code for a recycling facility (Materials Recovery Facility) is 562920. If your business is primarily engaged in the wholesale distribution of scrap and recyclable materials, the correct code is 423930.
Quick Details: Materials Recovery (Recycling)
| Field | Details |
| NAICS Code | 562920 |
| Industry Title | Materials Recovery Facilities |
| Sector | 56 (Administrative and Support and Waste Management) |
| Industry Group | 5629 (Remediation and Other Waste Management Services) |
| Last Updated | 2022 NAICS Edition |
What Does NAICS Code 562920 Cover?
According to the official 2022 NAICS data, code 562920 covers establishments primarily engaged in operating facilities for separating and sorting recyclable materials from nonhazardous waste streams (garbage) or operating facilities where commingled recyclable materials are sorted into distinct categories.
This includes:
- Materials Recovery Facilities (MRF): Facilities that receive, separate, and prepare recyclable materials.
- Commingled Material Sorting: Sorting mixed paper, plastics, glass, and metal cans.
- Waste Stream Extraction: Removing recyclables directly from a waste stream to prevent them from entering a landfill.
Alternative Code: 423930 (Recyclable Material Merchant Wholesalers)
This code is used for businesses that buy and sell scrap. It includes:
- Scrap Metal Dealers: Wholesaling iron, steel, and nonferrous scrap.
- Auto Wreckers: Dismantling cars to sell scrap metal.
- Recyclable Trading: Wholesaling waste paper, plastics, glass, and textiles.
Does My Recycling Business Qualify?
Your business qualifies for 562920 (Materials Recovery) if:
- You operate a physical plant where waste is sorted and processed.
- You transform mixed “trash” into sorted, high-quality recyclable commodities.
Your business qualifies for 423930 (Scrap Wholesaling) if:
- You act as a middleman or “scrap yard” that buys and sells recyclable materials.
- Your primary revenue comes from the sale of these materials to industrial users.
Your business may not qualify for these codes if:
- You Only Collect Waste: If you only haul or pick up recyclables but don’t sort/process them, use 562111 (Solid Waste Collection).
- You Process Plastics into Resins: If you turn recycled plastics into resins or compounds, use 325991 (Custom Compounding of Purchased Resins).
- You Treat Hazardous Waste: If you handle toxic or hazardous recyclables, use 562211.
Where Will You Need This Code?
SBA Loan Applications. Lenders use these codes to determine the risk category for waste management businesses. Accurate classification is required for SBA 7(a) and 504 loans used to purchase heavy machinery or facility upgrades.
Federal Contracting via SAM.gov. Government agencies often contract for “Recycling Services” at military bases and federal offices. You must register under 562920 to bid on these service-based contracts.
Environmental Permits and Compliance. State and federal environmental agencies (EPA) use NAICS codes to apply industry-specific regulations regarding waste handling and recovery.
Business Insurance. Insurance providers use these codes to assess risks related to heavy equipment operation, fire hazards, and environmental liability.
562920 in the NAICS Hierarchy
Every NAICS code sits inside a structured hierarchy. Here is exactly where 562920 fits:
| Level | Code | Title |
| Sector | 56 | Administrative and Support and Waste Management |
| Subsector | 562 | Waste Management and Remediation Services |
| Industry Group | 5629 | Remediation and Other Waste Management Services |
| NAICS Industry | 56292 | Materials Recovery Facilities |
| National Industry | 562920 | Materials Recovery Facilities |
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