That was the situation. What was happening in the 1990s was that tobacco manufacturers were exporting large quantities of containers to the United States to duty-free warehouses, and they were basically shipped back. Sometimes it was only on paper; the cigarettes were just delivered to contraband networks at the time.
Now it's a totally different situation, in which it's not the Canadian manufactures who are involved, but illicit manufacturing operations on the U.S. side of the border. They're probably getting their raw materials from, for example, North Carolina.