The trial of "the biggest diesel-oil smuggling case since the establishment of the People's Republic of China" opened at the Guangzhou Intermediate People's Court yesterday, reports Southern Metropolis News.

Zheng Hongjun, kingpin of the family-run smuggling racket based in the Panyu District, smuggled more than 54 million tons of "red oil" and one ton of cooking oil from Hong Kong, causing tariff losses of some 350 million yuan (US$42.290) to the mainland since 1998, according to the prosecution. "Red oil", or marked oil, is duty-free diesel in Hong Kong dyed red to distinguish it from taxable oil.

Zheng had the oil smuggled via 80-some fishing boats, each transporting no more than 80 tons every time - smugglers caught with less than 80 tons of oil are fined rather than indicted in accordance with Chinese law.

Zheng, a former low-ranking tax officer, began his smuggling career with seafood but switched to oil after realizing it was much more profitable, according to the newspaper.

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