Two men were arrested in the North today as part of a probe into a £2.3million Stg tax fraud stretching to mainland Europe.
Customs officers searched business premises and homes in Derry in a bid to smash a VAT scam run by organised criminals.
A network of companies was suspected of shipping in mobile phones, cameras andcamcorders in bulk from Spain and Denmark.
Officials described the swindle - known as carousel or missing trader fraud - as a highly complex operation.
The crime gang sets up firms in Britain and on the continent to buy and sell expensive goods without paying tax.
Jane Salt, Customs' Head of Investigation in Northern Ireland, vowed to crackthe syndicates.
"Tackling missing trader fraud is Customs' top VAT fraud priority and we arehaving a measurable impact.
"It is in the interests of all legitimate businesses to prevent this type offraud which distorts competition and forces honest traders out of business."
PA