Your first problem is trying to force definitions on a game. The Dev's feel that sneaking items into stations is Smuggling. Secondly, no goods listed as illegal can be sold on the Commodities Exchange. The system doesn't make this possible, ands it probably shouldn't.
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There is a specific type of smuggling mission. Not just bring back from space a stolen item type. The more specific missions pay more than the other mission type, and it requires you find items that are both stolen and illegal at the station. That is the closest to the type of smuggling you define.
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But, smuggling isn't something that has to mirror real life. Just accept the fact that in E: D smuggling is sneaking stolen/illegal items into a station to be sold on a Black Market, and you will feel much better
Yep..you're right.
OK ALL! WE CAN LEAVE THE FORUMS AND STOP SUGGESTING THINGS TO MAKE THE GAME BETTER. WORKING AS INTENDED, NOTHING TO SEE HERE, MOVE ON! MOHRGAN HAS SOLVED ALL THE PROBLEMS.