SHANGHAI: The city's biggest ever cigarette smuggling ring dodged tax of more than 40 million yuan (US$5 million), Shanghai No 1 Intermediate People's Court heard yesterday.

Twenty-three people, including seven main ringleaders, are accused of shipping in dozens of consignments from South Korea over a two-year period from October, 2002.

Sun Jiwei, an official from the Anti-Smuggling Bureau under Shanghai Customs, told China Daily that the cigarettes the gang had smuggled were worth up to about 27 million yuan (US$3.3 million).

They are accused of bringing over 45 separate consignments.

"They shipped the products first to a designated spot in Wusongkou Water Area and then had them picked up by barges to a dock in Shanghai's suburban Songjiang District," said prosecutor He Wei.

If convicted, the seven main suspects face being jailed for more than 10 years.

The opening of the hearing, which was held at the Big Courtroom of the court, attracted around 200 people, including relatives of the accused, police officers and press. It is scheduled to last until tomorrow afternoon.

The ring was uncovered when the Anti-Smuggling Bureau under Shanghai Customs seized a ship passing boxes of cigarettes to three barges at about midnight on October 14, 2004 in Wusongkou Water Area. Cigarettes worth more than 6 million yuan (US$743,000) were found.

Following information provided by men on the ship, the bureau arrested Liu Shuqin, Zeng Ling, Shi Yunxiang and several others over the next few days. They were accused of either investing or helping to transport or sell the cigarettes.

Following a raid at the home of one suspect, Liu Shuqin, detailed records of the previous six smuggling operations, from August to October, 2004, were found. A shipman's diary was later also discovered, which recorded each of the 45 shipments.

Source: China Daily