From
https://www.smashwords.com/about/beta
Quote:
December 28, 2012 - Smashwords Direct alpha testing underway. We're preparing to launch Smashwords Direct, our direct .epub upload option.
...
We're nearing completion of a beta version of SWD. The first iteration will enable those of you with professionally designed .epub files to replace your current Smashwords-generated .epub with another .epub. It'll also allow authors to upload .epub files instead of Word .doc files.
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I've been waiting for this news since I first published with Smashwords in 2011