I Googled a few articles on European cigarettes. It seems that due to the high taxation there are a lot of counterfeits out there – with some nasty additives.
I'm sure that you're correct....whenever a desired item becomes overtaxed, market forces, whether legitimate or not, will step in to fill the demand.
I'm guessing that if it weren't for the easy availability of Indian reservation cigarettes at lower prices, there would a massive black market for cigs here in the USA with not only stolen merchandise but counterfeit products as well.
I recall hearing that black market cigarette activities were heating up in the NYC area after the smoking bans went into effect there.