7 Jun 2018

NZ firm fined nearly $75k for breaching UN sanctions

10:26 pm on 7 June 2018

A Hamilton-based aircraft company has been fined for breaching United Nations sanctions by exporting replacement parts to North Korea.

The plane, a P-750 XSTOL manufactured by Pacific Aerospace, was sold to China but was spotted last week by the Aviation Week website at North Korea's first airshow.

The plane, a P-750 XSTOL manufactured by Pacific Aerospace, was sold to China but was spotted later by the Aviation Week website at North Korea's first airshow. Photo: Screenshot / Pacific Aerospace

Pacific Aerospace sold a 10-seater plane to a Chinese firm, FreeSky Aviation in 2015, which was later spotted at an aviation event in North Korea, painted in military colours.

The Manukau District Court was told in March that the New Zealand company sent three replacement parts to the new buyer of the plane, which was still under warranty, and knew it was in North Korea - but assured the court it was for civilian use.

Judge John Bergseng has fined the company $74,805 for the breach.

In response, Pacific Aerospace has released a statement, saying it accepted the penalty.

"We now better appreciate the complex sanctions issues associated with the export of aircraft and their parts, including in respect of indirect export provisions.

"We accept the sentence handed down by the court and we have put in place a number of policy and procedural checks to mitigate the risk of this happening again."

Pacific Aerospace is making no further comment.

Get the RNZ app

for ad-free news and current affairs