I belive I was the Freelancer you are complaining about, Red Phantom. If not, then its just a coincidence :P
Anyway, Im honestly not sure about it. The ID can be interpreted in many ways. When your contract requires demanding contraband, then its fullfilling a bounty contract, which is allowed by the ID.
I can stop doing that and stick to hunting Outcasts if Admins say I cant of course (interacting with most smugglers is a pain in the arse anyway)
And Vigilante ID is a lot restrictive, I would need to change my RP a lot just because of all the restrictions. :(