Bounty Hunter ID

[Primitive]

Pilot carrying this ID is a member of the Bounty Hunters Guild, who :
Can fulfill lawful bounty contracts,
Can trade and escort traders,
Can demand cargo or credits from ships carrying contraband and destroy them if they refuse to comply,
Cannot ally with any unlawfuls,
Cannot participate in any unlawful actions.
Cannot use any transports with more than 4,300 cargo
Allowed ships: Fighters, Freighters, Transports, Gunboats, Prison Liners.

Can demand cargo or credits from ships carrying contraband and destroy them if they refuse to comply,

How exactly ? You come across with pilot carrying contraband, so you can "pirate" him ? Hey you smuggler, pay me 3 millions or I will kill you ?

Discuss.