The gang recruited couriers and paid to jet them over to popular resorts and return with suitcases packed with duty-free tobacco.
Couriers, which included a mother and daughter, were promised a night in a sunshine resort and £100 cash-in-hand if the cigarette run was a success.
John Houston, head of HM Revenue & Customs regional investigation team, said: "We are determined to see an end to North East smuggling gangs who abuse the system to make a hefty profit at the expense of the taxpayer, legitimate business and honest retailers.
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