Vic pair jailed over tobacco operation

Two Melbourne men have been jailed over a "sophisticated" black market tobacco manufacturing operation that cost the country millions of dollars in lost excise tax.

The unlicensed operation at Tarneit was under surveillance for months before Australian Taxation Office investigators raided it in May 2014, finding more than 8000kg of tobacco in different stages of production.

Houssein Saoud, 37, and Carlos Fernandez, 40, were found guilty at trial of dishonestly causing loss to the commonwealth and both were jailed in the County Court on Thursday for three years.