US Customs and Border Protection said the semi-submersible vessel - which was only partially visible from the surface - was spotted by a surveillance plane 300 miles south-west of the Mexico-Guatemala border on Monday.
The plane then guided a US Navy ship to the scene as the four suspected drug smugglers scuttled the vessel along with the bulk of its cargo, believed to be around 11,000lbs of cocaine.
The suspects and 11 bales of cocaine weighing around 1,200lbs were eventually recovered from the scene.
US Customs and Border Protection spokesman Michael Friel said that cases of smugglers using semi-submersible craft were rare.
"There have been recorded cases involving these sorts of vessels but they are extremely rare," Mr Friel told said.
"It indicates the sophisticated methods smugglers use to try and avoid detection."
The war on drugs is an abysmal failure... enforcement efforts look just like the narco terrorism of the sellers.... how much longer are those of us caught in the middle of this war going to wait around to become collateral damage... what the government call an unfortunate circumstance.. or exigent circumstances turns out to be some hot shot enforcement agents 'Run Silent Run Deep' fantasy scenario. No interdiction effort in the history of mankind has been successful
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