That doesn't mean police can't do "minor" entrapment in order to roll up a big case; it just means they can expect to sentence people for those acts.
As for a litmus test, I believe maiming or killing bystanders would qualify against most police officers (the trick, then is to make sure the "victim" isn't a carefully placed undercover asset...).
Now, assume a ring of human traffickers have the rape and killing of a victim as part of the initiation process: are there circumstances where we would condone branches of our government to participate in order to bring down such an organisation? I lean strongly towards no; but as has been seen from Japan under us administration to kfor in Kosovo - using war criminals and military/intelligence personell as part of heinous organised crime is a feature of our current world order. How do we fight it?