Following a coordinated maritime operation officers HM Customs Marine Section yesterday seized 500 cartons of cigarettes along with a rigid-hulled inflatable boat (RHIB).
Two people have also been arrested, Customs confirmed yesterday.
The incident happened in the early hours when HMC Seeker engaged in a sea chase on the Eastside, eventually intercepting the vessel in close proximity to the shoreline in Catalan Bay.
The detainees are two Spanish nationals of 21 and 41 years respectively.
Both have been released on Police bail until February 2017.
The cigarettes have a retail value of approximately £10,000.