Goods including wine and tobacco were seized in a joint operation involving officers from HM Revenue & Customs (HMRC), Houghton community police and trading standards.
A raid at business premises and a private address in the village unearthed more than 13,000 cigarettes, 6.7kg of hand-rolling tobacco and more than 26 litres of wine - a duty tax evasion of more than £2,500.
A spokesman for HMRC said: "The people who sell these goods are not helping the community - they are unregulated traders who won't hesitate to sell alcohol and cigarettes to children or pass on potentially dangerous products to their unsuspecting customers."
"The profits made from this type of activity are often used to fund other crimes such as drug dealing and people trafficking."
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