A non-jury trial of a Co Armagh man accused of "moving a valuable terrorist asset" has begun.
Paul Martin McKerr is one of two men charged with firearms offences arising from the stop and search of a vehicle in Lurgan in 2018.
The 54-year old, from Belvedere Manor in Lurgan, has denied charges of possessing firearms in suspicious circumstances and without a firearms certificate.
His co-accused Shane Stevenson (35), from Drumlin Drive in Lurgan, was also charged with the same two offences, as well as two counts of attempting to possess a document containing information likely to be useful for terrorism.
Last week, Stevenson admitted all four charges and will be sentenced at a later date.
As a trial into McKerr's alleged offending commenced at Belfast Crown Court on Tuesday, it emerged that the charges levelled against both men date back to February 21 2018 when a white van was stopped by police on the Leven Road in Lurgan.
The vehicle was being driven by McKerr whilst Stevenson was the front passenger.
A prosecutor told Judge Gordon Kerr KC that when the van was searched, officers located a plastic bag containing smaller bags in the footwell of the passenger's side of the vehicle.
When the bag was opened, it was found to contain 22 empty rifle magazines which are compatible with AK47s.
The prosecutor said that after the items underwent forensic examinations "it was noted the magazines had surface rust and were covered in oil" and "while five magazines didn't function", all the items were "component parts of a firearm."
Setting out the Crown's case, the prosecutor said the circumstances surrounding the recovery of the magazines suggest both Stevenson and McKerr were jointly in possession of the magazines.
He said: "The bag was relatively bulky and obstructed the front passenger footwell.
"It was either there when Stevenson got into the vehicle ... or he brought it with him into the vehicle.
"The Crown say that in either case the court would be entitled to infer that this accused (McKerr) was jointly engaged in moving what was a valuable terrorist asset."
Searches were conducted at the homes of both men and whilst nothing of note was located at McKerr's home, several documents were seized from Stevenson's property.
Following his arrest, McKerr was interviewed several times and largely chose not to answer police questions.
He did, however, say in his third interview: "I know nothing about the packages in my van".
At hearing.