[Yo-Yo]

How is this “smuggling?” Aren’t the cans redeemable in Michigan? If I bought a can of pop in Wisconsin and (for some infathomable reason) drove across the border into Michigan, would I be smuggling if I tried to redeem my empty can? Is there a specific law that prohibits this endeavor?

It's not smuggling, and what you outline is perfectly legal. It's when you take the can to a store to collect the ten cent deposit that you never paid at time of purchase that is fraud, and it is illegal.

[IronJack]

So I CAN'T redeem my out-of-state can, even though it says right on the can that it is eligible for a 10-cent Michigan refund? I can only get the refund if I've paid the deposit?

If that's the case, then cans bought out of state should be littering Michigan's landscape by the barrel full.