Sanja Mandić-Soldo blows out a stream of smoke over the morning coffee she enjoys with five colleagues.

The open door to the little room where they sit spills out a gray mist from the cigarettes she and two others inhale.

Border shops

Dragiša Inić, a 65 year old unemployed transport worker from Deleuša near Bileća, says he has been run off the land his family has owned since the Austro-Hungarian Empire ruled the territory. He blames cigarette smugglers, who have turned a field where he once grazed his cows and goats into an illegal smuggling route.

Cigarette smuggling can be done by anyone with Internet access and a credit card. Countries like China and Dubai have become trading hubs where companies will ship cigarettes to you directly bypassing taxes and customs.

Despite the efforts of the EU, law enforcement and others, BiH continues to be a transshipment point for illegal tobacco. The state budget loses hundreds of millions of KM every year because of cigarette smuggling.

Traditional tobacco cultivation in Herzegovina is on the path towards extinction. Local farmers blame their problems on tobacco smuggling and corruption, but changing tastes are playing a large role as well.