In late March, European Union (E.U.) officials announced they had taken down a five-country cigarette-smuggling operation and seized over 40 tons of tobacco products. The ambitious network reportedly transshipped the cigarettes far and wide to obscure their sources and destinations, while also hiding them in hidden compartments built into cargo containers. Why would smugglers go through such effort to move perfectly legal products, and why would the authorities care? In Europe, as in the United States, the answer is the same: sky-high taxes.
