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Even without sanctions, lobbyists have incentives to comply with registration and reporting laws (see Crepaz Reference Crepaz2020), and registration costs are typically low

The ACIR report, titled "Cigarette Bootlegging: A State and Federal Responsibility," stated that cigarette smuggling in the United States was primarily due to state tax differentials[76] and recommended, among other things, that governments exercise restraint with their cigarette tax rates.[77] The report is one of the most oft-cited studies of cigarette taxes and smuggling in the academic literature

In the U.S., that number is closer to 10%, after decades of steady decline