Australian authorities are continuing an investigation into an international organised-crime network involved in the attempted smuggling of large quantities of illegal tobacco into Australia. The operation involved cooperation between the Australian Border Force (ABF), ACT Policing and Chinese customs authorities.

The broader investigation, known as Project SEAHORSE and Operation TRAILBLAZER, began after Chinese authorities identified suspicious shipping containers believed to be connected to an international tobacco-smuggling network. Intelligence was shared with Australian authorities before the consignments reached Australian ports.

A total of 112 containers were referred to Australian Border Force officers for inspection. The containers were scheduled to arrive at Australian ports between January and May 2026, with most of the shipments arriving through Sydney. Following targeted inspections, 91 containers were found to contain illicit tobacco.

Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco. The combined amount of duty allegedly evaded on the tobacco was estimated at more than $92 million. The $92 million figure refers to evaded duty rather than the retail value of the cigarettes.

Chinese authorities also arrested more than 60 people suspected of involvement in the international criminal network. Investigators believe the tobacco was manufactured in Southeast Asia before being moved through China and eventually shipped towards Australia.

Authorities allege that the syndicate attempted to conceal the tobacco within legitimate commercial cargo. Cover loads reportedly included ordinary goods such as LED lamps and printers, allowing the shipments to appear like legitimate international freight.

The investigation is significant because it demonstrates how Australian authorities are increasingly using international intelligence to identify illicit shipments before or as they enter the country. Instead of relying only on random inspections, information supplied by overseas law-enforcement partners enabled Australian officers to target specific containers.

ACT Policing has been involved in the wider investigation because illicit tobacco trafficking can generate substantial profits for organised criminal groups. Police have warned that organised crime groups involved in illegal tobacco can also be connected to other forms of serious offending.

A recent related operation in Australia also resulted in the seizure of more than 3.4 million illicit cigarettes and other assets valued at approximately $5 million during raids in Sydney. Authorities said the investigation involved links to organised crime and financial activity.

The crackdown comes amid growing concern about Australia's illicit tobacco market. Authorities say illegal tobacco can deprive governments of significant tax revenue while generating profits for criminal organisations.

Australian Border Force Assistant Commissioner Penelope Spies described the international operation as one of the country's significant disruptions of illicit tobacco trafficking. She highlighted the importance of cooperation between Australian and Chinese customs authorities.

Since July 2025, information shared by China's Anti-Smuggling Bureau has contributed to Australian detections involving more than 89 million cigarettes, 11 tonnes of loose-leaf tobacco and one million vapes, according to the ABF.

The investigation also demonstrates the international nature of modern organised crime. Tobacco can be manufactured in one country, moved through another and concealed in legitimate freight before being transported to its final destination.

Authorities are continuing to examine the network's activities and financial connections. Further enforcement action could follow as investigators analyse evidence gathered during the operation.

It is important to distinguish between confirmed seizures and allegations. The tobacco seizures and arrests have been confirmed by authorities, but individual suspects remain subject to legal processes and allegations should not be treated as proven offences unless established in court.

For Canberra, the involvement of ACT Policing makes the operation locally significant, although the majority of the identified shipping containers arrived through Sydney, rather than Canberra.

The operation represents a major coordinated effort to disrupt an international illicit tobacco supply chain before its products can reach Australian communities.