The U.N. Security Council committee on North Korea sanctions released Tuesday its Panel of Experts' annual report.

The report says North Korea is widely engaged in deceptive practices to conceal cargo such as illegal weapons trade, and that Air Koryo in fact belonged to the North's Air Force.

The Panel of Experts consists of eight experts from eight countries including South Korea and it has been issuing annual reports since 2010.

Regarding the North Korean ship Chong Chon Gang seized in Panama last year, the latest report said the Panel has found that North Korea makes increasing use of multiple and tiered circumvention techniques.

The Chong Chon Gang was detained by Panama last July when it was sailing to the North from Cuba. The ship was carrying undeclared weapons including MiG-21 fighter jets, MiG-21 jet engines and missile parts, under 200-thousand sacks of sugar.

The report said the seizure of the ship was the largest incident of weapons confiscation since U.N. sanctions were applied on the North.

The report pointed out that access to the Chong Chon Gang provided the Panel with an unrivalled insight into some of the ways used to circumvent sanctions. It noted the North’s use of secret orders to ranking sailors on the ship, code names, and also emergency measures in place in case the illegal cargo was discovered.

It also said the ship had turned off the automatic positioning system to conceal the ship's location.

The panel advised UNSC members to heed extra attention when inspecting North Korea-related cargo.

The report also raised the possibility of North Korea continuing arms trade with Myanmar and some African nations.

The panel assessed that the North was continuing development of nuclear weapons, missiles and other weapons of mass destruction as well. It cautioned countries exporting supplies and equipment necessary to operate the North's light water reactors.

In was noted in the report that the North was actively modernizing Soviet era weapons from the 1960s and '70s.

Another notable find reported by the panel is the fact that a South Korean chip was found to be used in the long range Unha-3 rocket the North launched in December 2012.

According to the panel, of the rocket debris salvaged by the South Korean Navy, a SDRAM memory was confirmed to have been manufactured by a South Korean firm between 2003 and 2010. Other parts of the North Korean rocket that were retrieved were found to have come from China, the UK and even Switzerland. A Soviet era interstage connector believed to have been taken from a Scud missile was among the finds as well.

The panel said in the report that such discoveries are indicative of North Korea’s continued dependence on foreign procurement for certain items, especially those related to nuclear and ballistic missile programs, as well as its lack of sufficient domestic precision machine tool manufacturing capability.