In 2010, President Obama signed the Prevent All Cigarette Trafficking Act (PACT), which requires wholesalers, distributors and manufacturers to register with the ATF and file monthly invoices to authorities in each state where they do business. It also prohibits the mailing of cigarettes (with some minor exceptions).
Smuggling is good business and very profitable it always has been going back to Prohibition. Why, because some states have raised taxes on tobacco to an obscene rate. People who want to smoke, will smoke and find a way to do so cheaply. You cannot change people’s behavior no matter how hard one tries. After all tobacco is LEGAL.