The men, whose names have not been released, were to appear in a Sydney court today on various drug charges, Australian Federal Police and Australian Customs and Border Protection Service said in a joint statement. They face potential life prison sentences if convicted.
Customs officers used X-ray equipment to examine a container declared to hold "kids toys" on the Sydney waterfront on Feb 8, the statement said.
Police delivered the container yesterday to an address in the southwest Sydney suburb of Prestons. A 30-year-old Hong Kong man and a 37-year-old Malaysian national were later arrested in a nearby car park, the statement said.
Police have not ruled out further arrests.