Smuggling

A Period of Neglect

England had several laws that required its colonists in America to pay importation duties on goods brought in from other countries, such as France and the Netherlands. It also required many products to pass first through Britain before reaching the American consumers. In order to avoid these extra costs and import from whatever country they wanted to, colonists often took to smuggling. This could be done in many ways, including: hiding certain products in shipments of legal goods, falsifying documents, transferring cargoes in secret to avoid discovery, and bribing officials.   The costs of enforcing the laws from so far away meant that the British government did little to crack down on this illegal activity and force the collection of taxes and duties for quite some time. This is known as salutary neglect.  

Crackdown

The neglect ended with the conclusion of the French and Indian War (known as the Seven Years' War in Europe). The cost of protecting the American colonies had been substantial for the British government, even if it had employed many colonial militias and soldiers. To make up for these costs, the government passed new taxes and duties, and began using the navy to crack down on smuggling in the American colonies. This did not go over well and was one of the major causes of the Revolution itself.  

Post-Revolution

After the Revolution many people did not simply stop smuggling because British rule was no more. Smuggling continued, especially on the Great Lakes serving as a border between British Canada and the United States. The issue had never been about England at all, but about getting goods without paying taxes and duties.