The Australian Taxation Office says it has shut down an illicit tobacco operation in New South Wales worth more than $13 million, its second large-scale bust in recent weeks.

Key points: The ATO with help from the NSW Police have seized and destroyed around $50 million worth of illicit tobacco in a fortnight

The ATO with help from the NSW Police have seized and destroyed around $50 million worth of illicit tobacco in a fortnight $34 million worth was located at a property on the NSW Mid North Coast in January while $13 million worth of crop was found in the state's Southern Tablelands this week

$34 million worth was located at a property on the NSW Mid North Coast in January while $13 million worth of crop was found in the state's Southern Tablelands this week No charges have been laid but growing tobacco can attract a maximum penalty of 10 years in prison

Assisted by police, the ATO said it had located four acres of tobacco crops, four bales of tobacco, a hothouse and three kilns for drying tobacco leaf on a property at Boxer Creek near Goulburn in the state's Southern Tablelands this week.

It will allege that more than 10.3 tonnes of tobacco was seized and destroyed.

Assistant Commissioner Ian Read said there were two males on the premises and they have been interviewed.

"There are no charges at this time as it's an ongoing investigation," Mr Read said.

"In our view, tobacco-growing operations are not run by small producers or farmers, they're run by organised criminal syndicates who deliberately engage in these activities to fund their other criminal activities."

Second haul in a fortnight

ATO officers seized more than $13 million worth of illicit tobacco from a property at Boxers Creek near Goulburn. ( Supplied: Australian Taxation Office )

The ATO is the agency responsible for identifying and prosecuting those who grow or manufacture tobacco products in Australia.

This week's haul is the second large-scale seizure of illicit tobacco made by the tax authority in a fortnight.

More than 26 tonnes, worth more than $35 million, was located at five sites at Mount Seaview near Port Macquarie on the state's Mid North Coast last month.

"It was a much larger exercise with 50 acres of tobacco crop, 30 of which were mature tobacco crop and 20 were seedling," Mr Read said.

"That value is approximately $34 million in excise forgone, so that was quite a large exercise we ran there in conjunction with NSW Police.

"It is a lot of tobacco to seize in a short period of time, however it's not a lot in comparison to previous years given the drought conditions."

Crops headed for the black market

Four acres of illicit tobacco crops, four bales of tobacco, a hothouse and three kilns for drying tobacco leaf were found on a property in the NSW Southern Tablelands. ( Supplied: Australian Taxation Office )

It has been illegal to grow the crop in Australia since 2006 and can attract a maximum penalty of up to 10 years in prison.

Mr Read said the products were likely bound for sale on the black market.

"Our approach is to disrupt the domestic growing of illicit tobacco at its source as well as seizing and destroying illicit crops that we uncover," he said.

"We try to educate landowners and the community to help disrupt the organised crime networks.

"Ultimately it prevents the illicit tobacco being distributed to retail markets or make its way obviously into further black economy, cash economy-type activities."