The 2,800 sub-machine guns seized at a container terminal in Hong Kong last week were obsolete weapons disposed of by the Malaysian police two years ago, a senior officer of the force said. Federal Criminal Investigations Department director Commissioner Musa Hassan said the shipment from Malaysia's Port Klang to Oakland in the United States was legal, except that the shipping company failed to obtain a transit permit. The consignment - estimated to be worth $1.2 million - was found in two containers at Kwai Chung Container Terminal last Friday. It comprised 2,858 machine guns, 25,226 empty magazines and about 5,000 gun parts. The weapons were declared as firearms in the manifest but lacked the licence necessary for import and export of strategic commodities in Hong Kong. The forwarding agent faces a maximum fine of $500,000 and a two-year jail sentence for failing to secure the licence. Che Halim Che Husin, managing director of Malaysian firm Global Forecast, said his company bought the items to be sold to two firms in California. Global Forecast undertook the deal through Jardine Shipping Company in Malaysia and the shipment arrived in Hong Kong on April 18. He said Jardine Shipping had since applied for a licence.