Tobacco Action Group operation stubs out illegal tobacco crime ring
02.00pm 01 July 2026
Five arrests and seizures of more than 1.3 million illegal cigarettes, along with approximately NZ$170,000 cash have been made in the first joint operation since the multi-agency Illicit Tobacco Action Group was established in May 2026.
Operation Clarify, led by Customs and supported by Police and Health New Zealand, has been a six-month operation that culminated with 21 search warrants executed on eight retail outlets and six residential addresses in Rotorua, Waikato and Auckland believed to be linked to an illicit tobacco network.
Along with illegal tobacco products, investigations found evidence that indicated there were plans to expand distribution by recruiting more retailers.
Investigations also found seven storage locations where illicit tobacco products had been stockpiled and evidence that indicated there were plans to expand distribution by recruiting more retailers.
It’s estimated 1.378 million cigarettes have been seized, representing more than NZ$2 million in evaded Customs revenue.
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 coordinated determination and agility the Illicit Tobacco Action Group will bring to bear on these criminal players,” Customs Assistant Comptroller Intelligence and Investigations, Terry Brown, explained.
This operation, built from a CrimeStoppers anonymous tip-off late 2025, and was brought to today’s successful conclusion through the joint efforts of Customs, Police, Health NZ and the Ministry of Health.
“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,” Mr 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,” he confirmed.
Police Superintendent Sunny Patel acknowledges the great coordination 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 play an important role in sharing intelligence, assisting with executing search warrants and seizures of illicit tobacco products, such as the activities undertaken in Operation Clarify, 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,” Superintendent Patel said.
New Zealand’s Director of Public Health, Dr Corina Grey, says 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 coordinated way.”
The member agencies of the Illicit Tobacco Action Group: Customs, Police, Ministry of Health and Health NZ understand 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.
