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A 40-year-old man from Gravesend was arrested yesterday on suspicion of selling, storing and distributing illicit tobacco.
Criminal investigators from HM Revenue and Customs arrested the man from an address in the town.
Three Gravesend premises were searched and removed records for analysis including more than 443,000 suspected illicit cigarettes and 47 kilos of hand rolling tobacco.
The arrest follows a seizure of nearly 600,000 illicit cigarettes and more than 55 kilos of tobacco from a garage in Gravesend in December.
The total estimated duty evaded on the seized haul is £341,000
Peter Millroy, assistant director of criminal investigation at HMRC, said: "Tackling the illicit tobacco trade is a priority for HMRC and we will not hesitate to investigate those suspected of being involved.
"These offences have a devastating impact on honest retailers who have to compete with the black market and on the nation’s finances, with around £2 billion lost in excise revenue each year."
The man was interviewed and released on bail until June 10 while investigations remain ongoing.
Anyone with information about people who may involved in this type of fraud can contact the Customs Hotline on 0800 59 5000.