The truck carrying illegal cigarettes was pulled over outside Kaunas for a regular check.
The driver did not have any freight documents and could not explain the purpose of his trip, while the truck contained 570,000 packs of Metro brand cigarettes without excise stamps.
Lithuanian authorities believe the cigarettes had been forged in Latvia, as similar freight has been detained in Kaunas and Klaipeda in the past few years.
The Latvian truck driver was initially detained for 48 hours, but a city court in Kaunas on Thursday ruled to remand him custody.
The Kaunas department of the Lithuanian Customs Criminal Service has started a criminal investigation into the case.