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In the footage, Sean Woods, 24, from Liverpool, can be seen being arrested by officers in Lima last month.
He is then bundled into the back of a police car and taken to the station, where his blue suitcase is emptied by officials.
They remove 31 blocks of what they claim is cocaine hyrochloride.
It is understood he is refusing to co-operate with the investigation for fear of violent reprisals from drug lords.
He has told police he is a computer technician and suffering serious financial issues.
According to reports, he told officers : “I don’t know what’s in it. He said to meet here at 1 o' clock, I don’t know phones. I just wait here.”
Cops say he was carrying more than three times the amount smuggled by Peru Two Michaella McCollum and Melissa Reid in 2013.
They were sentenced to seven years in jail – with Woods facing 15-25 years on Aggravated Drug Smuggling charges.
Officers from the crack DIVANDRO anti-drug squad swooped to arrest Woods in the Plaza de Bellavista shopping centre – located in lawless port city Callao.
A spokesman for Peru's Ministerio Público said: "Caught red-handed, an English citizen was arrested carrying around 32 kilos of brick-type cocaine hydrochloride, which he intended to take out of the country.
"He was carrying 31 Brick-type packages containing cocaine hydrochloride which were hidden inside a blue trip suitcase.
"Each package had the inscription "R" which would correspond to the criminal organisation".
He was then handed over to the infamous Peruvian federal police – which was in 2016 caught running a secret network of anti-drug death squads.
An FCO spokeswoman said: "We are providing consular assistance to a British national arrested in Peru and are in contact with the local authorities."
In 2013, Michaella and Melissa Reid were arrested for smuggling cocaine at Jorge Chavez International airport in Lima, Peru.
They were caught by customs officers carrying cocaine ahead of a long-haul flight to Spain.
The girls claimed they had been forced to carry the drugs by an armed gang.
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