Investigators have found that traffickers of cigarettes in the United States and the United Kingdom are providing material support to the Hezbollah and the Real IRA, among other terrorist groups. In addition, law enforcement research indicates that groups tied to al Qaeda, Hamas, PKK (the Kurdish Workers Party), and Islamic Jihad (both Egyptian and Palestinian) are involved in the illicit trafficking of cigarettes. There are various schemes used to traffic in illicit cigarettes. Some of the more obvious or most common schemes are trafficking from a low-tax State to a high-tax State, Internet and mail order sales, theft and hijacking, import-export operations, and counterfeiting cigarettes and tax stamps. Many of these schemes are used domestically and internationally. The trafficking of cigarettes by terrorists and their sympathizers has occurred worldwide since the mid-1990's, and the last 4 years have seen a sudden increase in trafficking. The trafficking schemes provide the terrorist groups with millions of dollars annually, which fund the purchasing of firearms and explosives to use against the United States, its allies, and other targets. Investigations have found that the terrorist groups work with organized crime groups as well as with the international drug trafficking organizations. Indications are that terrorist involvement in illicit cigarette trafficking will increase. Each State that raises it cigarette taxes is a new prospect for illicit profits gained by trafficking in cigarettes. In addition, the current relationship between terrorist groups and criminal groups will continue to grow. 5 notes