HMRC and PSNI officers searched a number of domestic premises, outbuildings and vehicles in the south Londonderry area on Wednesday where the products, worth an estimated £250,000 in lost duty and taxes, were found.
Some £37,000 in cash, two cars, one van and two horse boxes were also seized. Five houses were searched.
A 63 year-old man from south Londonderry and two men aged 69 and 24 from Co Armagh were also arrested, interviewed and released on bail.
Investigations into the suspected fraud are ongoing.