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Contraband is anything classed as illegal by a government.
The Federation deals with the sale of contraband by imprisoning offenders, the Klingons punish such behavior with death and the Cardassians torture offenders. (DS9 novel: The Long Night)
Odo calculated that in 2369, he was discovering and seizing just ten percent of contraband coming through Deep Space 9. (DS9 novel: Bloodletter)