SINGAPORE — For almost five years, the Singapore-based affiliate of a China-based trading firm arranged for more than S$700,000 worth of wines and spirits to be shipped to North Korea.

Sinsms and its director, Lim Cheng Hwee, violated United Nations (UN) regulations in doing so. It has been illegal to directly or indirectly supply luxury items to the reclusive city-state since 2006.

On Friday (Dec 11), Lim, Sinsms and the firm’s administrative clerk, Hong Leng Ooi, pleaded guilty to several charges under the United Nations (Sanctions — Democratic People's Republic of Korea) Regulations 2010.

Hong had known about the shipment of goods to North Korea but did not tell the authorities, continuing to help such as by preparing and issuing export documents for the shipments.

Lim was sentenced to two months’ jail, while Sinsms was ordered to pay a fine of S$30,000. Hong was fined S$4,000.

The court heard that Lim shipped wine and spirits to the city of Nampo in North Korea through Dalian, China on seven occasions between December 2013 and July 2018.

Knowing that this was in breach of UN regulations at the time, he did not declare the final port of delivery to Singapore Customs.

Sometime before October 2016, Mr Mun Choo Myong, a 53-year-old North Korean man, approached the director of Mega-Tech Industries. The firm dealt in international trade of consumer electronics and food and beverages, exporting primarily to China markets.

Mr Mun and the firm’s director, Mr Richard Goh Yong Hock, came to an arrangement.

Mega-Tech would source for the wine and spirits that Mr Mun ordered. The alcohol would be stored in a licensed warehouse in Singapore and only released to Sinsms after Mr Mun gave full payment to Mega-Tech.

Sinsms was the freight forwarder appointed by Mr Mun.

Mr Mun then told Lim to ship the goods to Dalian, for consumption in North Korea.

Once the wine and spirits arrived at Dalian, another man named Liang Ye, a registered director of Sinsms and Lim’s business partner, arranged for the goods to be shipped to Nampo.

Sinsms collected payment from Mr Mun and transferred the money to Mr Liang on three occasions.

The total value of goods supplied to North Korea amounted to S$745,488. Sinsms earned about US$200 (S$270) to US$500 (S$670) in profits for each shipment.

Hong, the administrative clerk at Sinsms, took instructions from Lim. She liaised with Mr Liang and Mr Mun, helping the former to prepare documents for the shipments from Dalian to North Korea.

She also liaised with customers to obtain shipping instructions.

Deputy Public Prosecutors V Jesudevan, Koh Mun Keong and Sarah Thaker sought the sentences imposed, noting that Lim would have persisted in his actions if he were not caught.

For each charge of breaching UN regulations, Lim and Hong could have been fined up to S$500,000 or jailed up to 10 years, or both.

Sinsms, being a company, could have been fined up to S$1 million.