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This is known as the in-bond system. The United States Government Accountability Office produced in 2017 a lengthy report of illicit cigarette trafficking at the border and zeroed in on duty-free and bonded warehouses as sources of traffic.[34] Eighty-eight such stores and warehouses dotted the Southwestern border across Texas, California, Arizona and New Mexico.[35] Federal agencies had long recognized that duty-free stores along or near the border may be a source of legal purchases that may get illegally diverted to avoid duty and tax payments.[*] Duty-free stores in Texas were the dominant sellers of cigarettes

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"We think that will be a really important part of the enforcement picture, helping make sure that responsible retailers are rewarded and the less responsible ones are quickly identified, and Trading Standards have more powers to deal with them," Cerny said

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