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A Maidstone man was one of eight people arrested in connection with a suspected fraud operation.
The 33-year-old was questioned by officers from Sussex Police on Tuesday, after three tonnes of hand rolling tobacco was discovered during a raid at a house in Southampton. The estimated excise duty evaded is about £560,000.
He was arrested at a nearby address on suspicion of money laundering.
Detectives arrested the man at a nearby address on suspicion of money laundering and seized £6,900 cash. He has been released on bail until July.
Four men and two women, aged between 24 and 41, were charged with evading tobacco duty and have been remanded in custody.
A 35-year-old man from West Sussex was also arrested on suspicion of money laundering and has been bailed.
The raid was a joint task between HM Revenue and Customs, Sussex Police and the South East Regional Organised Crime Unit.