Smuggling Cigarettes

A 1995 study showed that between 300 to 400 billion cigarettes were smuggled into the U.S. that year, which is equivalent to one third of the legally imported cigarettes sold. Cigarettes are the worlds largest legal product that's smuggled across every national border. Smuggling causes international brands to become affordable to low income consumers. While tobacco companies are making large amounts of profit off illegal distribution, the government is losing tax revenue.

The Chinese government
loses $1.8 billion in revenue
each year from cigarette
smuggling




Source: "Tobacco and Medical Care." Smoking Effects. Web. 16 May 2011.