Because it can be illegal without be stolen. And vice versa.
In such systems the cargo is not contraband, only stolen. My question was, why does it matter if contraband goods are stolen?
Contraband by definition is illegal whether stolen or not. Therefore contraband is always illegal whether stolen or otherwise. If it's not illegal, it's not contraband.
If the question was that, maybe. However the question was not that, the question was "why does it matter contraband has been stolen?"
Well, you already got your answers then. These things are not mutual/linked and you can rack up twice the fines if you come around with stolen illegal goods.
Can you explain how the jurisdiction between factions works to support this then?
Stolen implies "taking owned property without knowledge or permission". If this definition is incorrect, please enlighten me as to the official Elite Dangerous legal definition used in game.
Therefore, stolen property must have been legitimately owned by another party if it were possible to steal it. Errgo, it cannot have been contraband at the location of the theft. If it was not contraband in that location, then the legal jurisdiction that imposes the restriction does not apply to that location, so why are they then able to consider the 'thief' guilty if this is not a crime in their jurisdiction?
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Cargo ownership is likely a pilots federation system, thus used galaxy wide.
Thanks that would make much more sense.