Canadian tobacco companies Imperial Tobacco Canada and Rothmans were fined 1 billion Canadian dollars ($980 Million) for their role in smuggling cigarettes.

From Reuters:

The charges relate to the years between 1989 and 1994, when tobacco taxes, especially in Eastern Canadian provinces were so high that they prompted widespread cigarette smuggling. The taxes were intended to reduce smoking.

Cigarettes exported from Canada to the United States were then illegally brought back into the country, sometimes using native Indian reserves along the border.

Worldwide, cigarette smuggling is a $50 billion industry.