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# Smuggling as Principal Import Method

## Definition

The illegal importation of goods across borders to avoid tariffs, prohibitions, or other trade restrictions, which becomes the dominant method of trade when legal commerce is severely restricted by government policies.

## Source Chapter

Book IV, Chapter 3

## Context

Smith observes that mutual trade restrictions between Britain and France have driven legitimate commerce underground, making smugglers the primary importers of each other's goods, thus defeating the intended purpose of the restrictions.

## Economic Domain

Exchange

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