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Tobacco and cigarettes were seized and two men arrested after police and HM Revenue and Customs (HMRC) officers raided a convenience store in Gravesend.
The shop in Milton Road was seen being entered by officers at around 8.25am today.
The two men have been bailed while inquiries continue.
An HMRC spokesman said: “The sale, storage, smuggling or transport of illicit tobacco will not be tolerated by HMRC.
"Disrupting and prosecuting criminal trade is at the heart of our strategy to clampdown on the illicit tobacco market, which costs UK taxpayers around £2.1 billion a year.
“We encourage anyone with information about suspicious tobacco or cigarette products to contact the Customs Hotline on 0800 59 5000.”
A group of four police cars and a van were at the scene in Milton Road as well as a vehicle from HMRC.
A police spokesman said: "Officers supported HM Revenue and Customs in the execution of a warrant at an address in Milton Road, Gravesend, this morning. A man has been arrested and is in custody."
A 45-year-old woman, who lived nearby and wished to remain anonymous, said: "It looks like they are being raided. There are lots of police officers and customs officers."