I would also point out that even if the duty is assessed properly, as many have pointed out, it is still cheaper than buying the tobacco at a B&M in Canada. Why is this? Well, imagine you are a B&M here. When you bring in the tobacco to your store, you have to pay the federal and provincial tobacco tax at that time, even before you sell it. That means during the period of time that it takes to sell the tobacco (which may take months or longer) you have to finance a very large upfront tax payment. That means you have to have a higher margin (ROI) to cover that upfront cost.