Banbridge police say their detectives have recovered a large quantity of cigarettes and cash in Gilford.
The items were found during the search of a house in Dunbarton Street.
The search was carried out in conjunction with HMRC who seized more than 41,000 cigarettes.
Almost £10,000 was seized by police.
Three men, two of them aged 29 years old and one aged 38 years old, were arrested.
The 38 year old man was arrested for possession of criminal property, facilitating illegal entry into the UK and diverting electricity.
The two 29 year old men were arrested on suspicion of illegal entry into the UK.
Both are in Home Office detention whilst steps are taken to remove them from the country.
The 38 year old man was released on bail pending further enquiries. A second search was also conducted at premises in Dunbarton Street.