Five people have been arrested after authorities seized more than 1.38 million illegal cigarettes during a major operation targeting an alleged illicit tobacco network across the North Island.
According to a report by 1News, the six-month investigation, known as Operation Clarify, culminated in 21 coordinated raids at eight retail outlets and six residential properties in Rotorua, Waikato and Auckland. Customs led the operation with assistance from New Zealand Police and Health New Zealand.
During the raids, officials confiscated an estimated 1.378 million cigarettes, representing more than $2 million in unpaid tobacco excise. Authorities also seized around $170,000 in cash. Most of the cigarettes are believed to have originated from Asia, as reported by 1News.
The majority of the targeted businesses were dairies, while one premises was described by investigators as a "pop-up" outlet selling illegal tobacco products. Officers also uncovered seven storage locations where contraband tobacco had allegedly been stockpiled.
Five people have been charged with possession or custody of uncustomed goods, as well as the sale and distribution of uncustomed goods.
Investigators said they had uncovered evidence suggesting the network was planning to expand by recruiting additional retailers.
Customs Assistant Comptroller for Intelligence and Investigations Terry Brown said there was “potentially a gang association” among those arrested, but it was "too early to say", as quoted by 1News.
He added that Customs would seek the maximum prison sentence for those convicted.
The investigation began after an anonymous CrimeStoppers tip-off in late 2025.
Brown said Health New Zealand played a key role in identifying the alleged network.
“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,” he said, 1News has quoted.
New Zealand's Director of Public Health, Dr Corina Grey, warned that illegal tobacco posed a serious public health concern.
“Our priority is protecting New Zealanders’ health. Illicit tobacco undermines that, which is why agencies are working together to respond in a more coordinated way,” as quoted by 1News.
Authorities said organised criminal groups involved in the illegal tobacco trade were harming communities, legitimate businesses and taxpayers.
Police Superintendent Sunny Patel said: “We know that illicit tobacco networks, such as those identified in Operation Clarify, are in it to profit from their illegal activity and create harm across communities,” 1News has quoted.
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