Australian Border Force has intercepted 77 kilograms of heroin concealed in air cargo crates bound for an address in the southern Perth suburb of Bibra Lake.
Police say it is one of the largest seizures of heroin in WA's history and carries a street value of $77 million.
Following a tip off from Taiwanese Customs, ABF officers went to an air cargo depot in Perth on May 28 where they seized three large crates purporting to contain industrial equipment.
Those crates were x-rayed and the contents, including a large industrial oven, were dismantled, revealing 222 packages of heroin, 132 inside one crate and 88 inside another.
Police secretly replaced the heroin with a fake substance, and the shipment was delivered to a warehouse in Bibra Lake last week.
Officers patiently watched the property for seven days until two men arrived, entered the warehouse, and left carrying black duffel bags.
The men were later intercepted driving in convoy with two men in another car.
Asian crime syndicate suspected
All four were arrested and charged with attempting to possess border-controlled drugs.
A fifth man, the owner of the business operating the Bibra Lake warehouse, was also arrested and charged with importing and attempting to traffic a commercial quantity of heroin.
Three of the men live in WA and the other two had flown in from New South Wales.
None have been linked with outlaw motorcycle gangs, but police suspect they are linked to an Asian crime syndicate.
Australian Federal Police Commander John Tanti said the fake heroin ruse was ultimately revealed before police could ascertain the drug's ultimate destination.
"We had reached a critical point in time where they recognised the product that they were handling was substituted and the gig was up," he said.
Drug bust 'saved lives'
Commander Tanti said that amount of heroin could have reached 770,000 people and taking it off the street would prevent a great deal of harm.
"Sadly, there is a death in our community for approximately every two kilograms of heroin used," he said.
"It's hoped that the main outcome of this operation is the preservation of 38 lives."
WA Police Acting Commander Tony Longhorn said the investigation was far from over.
"The investigation does not stop with the driver of the car, or the passenger of the vehicle, or someone manning a warehouse," he said.
"We will now pursue the trafficker and the criminal network who coordinated and were going to distribute this elicit commodity within the community of Western Australia."