Suspected illegal tobacco was found in a Rugby shop by a sniffer dog.
Warwickshire County Council Trading Standards officers visited the premises on June 15 with a trained tobacco-sniffing dog.
The premises was visited as a result of local intelligence.
Warwickshire Trading Standards is not naming the premises at this time as investigations are continuing.
Anyone prosecuted as a result of this action will be named.
Cllr John Horner, Warwickshire County Council’s portfolio holder for Community Safety, said: “Sellers of illegal tobacco are warned that there are no safe hiding places for their counterfeit and non-duty paid stock from our sniffer dogs.
“I would urge anyone with information about the manufacture or sale of illegal tobacco to report the matter to the confidential fakes hotline (0845 894 1008) or to Crimestoppers.”
Warwickshire County Councillor Philip Johnson, Chairman of the Communities Overview and Scrutiny Committee, added: “Warwickshire Trading standards will continue to carry out these enforcements exercises to support legitimate retailers and taxpayers and help protect the health of children and young people who are often tempted by cheap illegal tobacco.”
Warwickshire Police Officer Amarjit Atwal added: “We are delighted to be supporting this action to clear the streets of illegal cigarettes much of which is being sold at pocket money prices, making it easier for children to afford to buy cigarettes and start smoking.
“The people producing and distributing illegal tobacco also have strong links to other forms of criminal activity including drug dealing, money laundering, people trafficking and even terrorism.
“I strongly urge local traders to think twice before agreeing to sell these illegal products, even if you are only offered small quantities. Selling illegal tobacco is a crime.”