The article analyses some US federal court decisions which by relying on the so-called revenue rule rejected civil claims of foreign sovereigns against major tobacco companies based on tax losses suffered due to the smuggling of contraband tobacco products into the claimants' territories. The revenue rule deals with the domestic court's jurisdiction to enforce penal, revenue or other public law claims of foreign states. First, the article discusses the alleged rationale and the unclear scope of the globally accepted revenue rule. Then, it turns to the question whether the revenue rule was rightly applied by the courts to the civil claims of the foreign sovereigns. Finally, it questions the alleged rationale of the revenue rule and argues for its abandonment.