I'll just add that I think that Quebec has done outstanding work on this front. Contraband went from 35% of the market to 15%—and that being been done through various controls on raw materials and machinery. You need licensing before you even sow your tobacco. There's a manifest that each farmer needs to fill out saying who it will be sold to and who's going to be shipping it.
On December 3rd, 2013. See this statement in context.