Five arrested, 1.3m illegal cigarettes seized in North Island tobacco raids

Five arrests have been made and more than 1.3 million illegal cigarettes were seized following a six-month operation into an illicit tobacco network spanning the North Island.

The multi-agency Illicit Tobacco Action Group, led by Customs NZ and supported by NZ Police and Health NZ, also found approximately $170,000 in “Operation Clarify”.

The six-month operation culminated with 21 search warrants on eight retail outlets and six residential addresses in Rotorua, Waikato and Auckland believed to be linked to an illicit tobacco network.

With illegal tobacco products, investigations found evidence that indicated plans to expand distribution by recruiting more retailers.

Investigations also found seven storage locations where illicit tobacco products had been stockpiled, with evidence indicating plans to expand distribution by recruiting more retailers.

An estimated 1.378 million cigarettes have been seized, representing more than $2 million in evaded tobacco excise.

The five people arrested face charges of possession or custody of uncustomed goods, and sale and distribution of uncustomed goods.

“Operation Clarify demonstrates the kind of co-ordinated determination and agility the Illicit Tobacco Action Group will bring to bear on these criminal players,” Customs assistant comptroller intelligence and investigations Terry Brown said.

An Illicit Tobacco Action Group operation stubbed out a tobacco crime ring across the North Island. Photo / Customs New Zealand

The operation was built from a CrimeStoppers anonymous tip-off in late 2025.

“Health NZ provided valuable intelligence through work they’d been doing at the beginning of this year, which confirmed to Customs that an illicit tobacco network was operating in the Rotorua, Waikato and Auckland areas,” Brown said.

“Operational support from police has enabled us to act on multiple search warrants yesterday and earlier today involving raids on nearly two dozen locations, as well as assisting with related arrests.”

Police Superintendent Sunny Patel acknowledged the co-ordination between all agencies under the Illicit Tobacco Action Group, which is building on existing partnerships to suppress the growth of an illicit tobacco market in New Zealand.

“All agencies involved in the Illicit Tobacco Action Group have a part to play in disrupting criminal activity associated with illicit tobacco, taking enforcement action against those involved in these activities and preventing harm.

“We know that illicit tobacco networks, such as those identified in Operation Clarify, are in it to profit off their illegal activity and create harm across communities.”

Police continue to work in close partnership with Customs, Ministry of Health and Health NZ to investigate illicit tobacco networks.

Police played an important role in sharing intelligence, assisting with executing search warrants and seizures of illicit tobacco products, including the restraint and forfeiture of assets under the Criminal Proceeds (Recovery) Act.

“Across police, our people are keeping an eyes-open approach to illicit tobacco, including where we see this criminal activity during police investigations and as part of day-to-day policing on the frontline. We also encourage the public to report any illicit tobacco-related activities through the appropriate channels,” Patel said.

New Zealand director of public health Dr Corina Grey said illicit tobacco undermines efforts to reduce smoking rates by making cheap, illegal cigarettes more available and reducing incentives for people to quit.

“Our priority is protecting New Zealanders’ health. Illicit tobacco undermines that, which is why agencies are working together to respond in a more co-ordinated way.”

The member agencies of the Illicit Tobacco Action Group said they are dealing with fast-moving, organised players who are undermining legitimate businesses and New Zealand taxpayers through criminal dealings, which often help fund other serious criminal offending.

The Illicit Tobacco Action Group is also supported by other agencies, including Inland Revenue and Immigration New Zealand.

Customs said “everyone has a role to play in protecting New Zealand’s border and communities from criminal activity”.

“Suspicions about such activity, including illicit tobacco, can be reported by calling 0800 WE PROTECT (0800 937 768) in confidence, or Crimestoppers anonymously on 0800 555 111.”