There seems to be a few posters on here who seem to condone smuggling, as long as it is in small quantities. I'm not going to jump on the outrage express but just for the record if you bring in any quantity over the HMRC limit, or sell-on your duty-free, then you have broken the law - it's your choice.
It is real temptation for the badly-paid boys and girls who work as cabin crew for airlines to succumb to the special-offer on 400 cigarettes in order to make a few extra quid by selling them on to friends. Where I work now the company will instantly dismiss any employee caught over their limit, regardless of any HMRC involvement. No formal warning, no lesser administrative or disciplinary action - simply instant dismissal. In that climate you know the risk and you make your own choice. Sensible people will not even take a risk on: "Not taking cigs? Will you take these for me?".
If this story is true, then I'm sure that there will be prosecutions as HMRC will regard an organized racket by professionals with access to air-freight as a serious offence. However, it might be worth reflecting that this kind of thing could well have roots in a collective view that 'small amounts are ok, aren't they?'