It's a common misconception actually, because you mix actual 'illegal actions' from rules with 'unlawful activities' from house laws. Those are quite separate. Let's take Junkers, for example. They are not allowed to pirate inside Liberty, and that's a rule restriction. The same ID however is able to pirate outside Liberty what here is actual illegal activity according to the in-roleplay house laws.
If you see 'unlawful actions' in your ID, smuggling is not counted as those, because it is counted as trading - BUT, if you ship Blackmarket Weaponry in e.g. Bretonia, you do not break your ID, but you still can be fined for doing that as inRP consequences.
