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To learn more about the history of the tobacco industry in China, listen to this Sinica Podcast with Matthew Kohrman, associate professor of anthropology at Stanford University

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Commercial smugglers with enough capital and connections can bring in millions of cartons by truck or ship, buying them wherever they can obtain inexpensive cartons in quantity - sometimes on a reservation, sometimes in a low-tax tobacco state and sometimes abroad, where even the federal tax can be avoided