The word "smuggling" does seem to indicate that something unlawful is going on...
When Hogosha smuggle artifacts and gun commodities, it's fair to assume that they do it without paying VAT or Taxes or something similar; otherwise there'd be no point in having the Hogosha (if a totally lawful organization could do the same) - and no point in mentioning "smuggling".
In other words: Why do you try to make Hogosha into something they aren't in Vanilla?
