From a lawful point of view it is perfectly sound because the naval and military forces would likely have secret spy equipment to detect the nearby vessels in foreign space, certainly sensors in their own space. However, it can provide for too much of an advantage to piracy since a pirate can know that it is a transport as opposed to an enemy capital ship. Pirates should not have this kind of knowledge, maybe Outcasts or Corsairs within their closest foreign systems, but not loose entities. I actually use this list a lot, but I try my damnedest to keep it within roleplay and have to be extra careful as an unlawful, but it is certainly abusable.
