The BBC has an article on the cigarette smuggling industry in the United Kingdom.

From BBC News:

The trade in illegal cigarettes in England is big business.

Customs officers seized more than 50 million illicit cigarettes and nearly 4,250 kilos of hand rolling tobacco in the West Midlands area in 2007.

Of these hauls, 70% were found to be counterfeit.

Jennie Kendall, spokeswoman for HMRC, said the dangers of smoking counterfeit cigarettes were vastly underrated.

Made in bonded labour factories in China and Eastern Europe, a packet of 20 counterfeit cigarettes can cost as little as 9p to manufacture.

Expertly packed by fraudsters, they are practically impossible to distinguish from a packet of genuine cigarettes.

But in addition to containing higher levels of chemicals, they have been found to contain sawdust, tobacco beetles and even rat droppings.

Worldwide, cigarette smuggling is a $50 billion industry.