RCMP intercepted millions of unstamped cigarettes from a truck that had just left the Marine Atlantic ferry terminal in Port aux Basques on the weekend.
Two people, a 30-year-old man and a 55-year-old woman, both from Colliers, were arrested.
Police say the truck and 15-foot enclosed trailer were seized and a subsequent search resulted in the discovery of 270 cases of unstamped cigarettes, equating to 2.7 million smokes.
The pair have been released and charges are pending as the investigation continues.