Legal Daily reported on a new type of illegal food oil that is being used in food preparation. In the past, illegal food oil, which earned the name "gutter oil," was generally extracted from waste oil and leftovers from restaurants. Such gutter oil was then illegally sold to restaurants as food oil. Recently, a new type of “gutter oil” has been circulating in the marketplace and is being used as food oil. It was extracted from filthy and rotten internal animal organs, skin, and parts that slaughterhouses had thrown out. The daily newspaper reported that the Chinese Public Police Ministry cracked down on a large "gutter oil" network, confiscating over 3,200 tons (about 3.5 million pounds) of such “new gutter oil.”
Source: Legal Daily, April 10, 2012
http://www.legaldaily.com.cn/Social_management/content/2012-04/10/content_3485592.htm?node=35360