Almost 8,000 cigarettes and more than 300 litres of alcohol have been seized from shops in Nottingham during a crackdown on illegal trade.
A series of raids on four shops in the Sneinton and Canning Circus areas were carried out by HM Revenue and Customs (HMRC), trading standards and police.
An HMRC spokeswoman said the £4,000 of evaded revenue was money that could fund vital services.
One man was arrested during the operation.
Keith Morgan, specialist investigation detection manager for HMRC, said: "We have active and effective teams operating across the East Midlands to deter and disrupt those dealing in illicit alcohol and tobacco.
"We will seize the goods and individuals may face criminal prosecution.
"This illegal trade has a devastating effect on legitimate retailers having to compete with black market traders, particularly at Christmas, one of the busiest times of the year for alcohol and tobacco sales."