DGFT Advisory: Exercise Caution in Dealings with Bangladesh-Based M/s Julfikar Fashions Limited

The Directorate General of Foreign Trade has issued a precautionary advisory urging Indian exporters and the wider trade community to exercise heightened due diligence before entering into commercial arrangements with a named Bangladeshi firm. Trade Notice No. 31/2026-27, dated 21 October 2026 (File No. 01/17/HQ/AM27/QCTD), issued under para 8.07(d) of the Foreign Trade Policy 2023, concerns M/s Julfikar Fashions Limited, Mirpur, Bangladesh. The notice follows an unresolved trade-dispute complaint and the firm's failure to respond to DGFT's attempts at verification. Importantly, this is a cautionary measure only — the company is not on any prohibited or denied-entity list.

What Happened

DGFT received a Quality Control & Trade Dispute (QCTD) complaint against M/s Julfikar Fashions Limited. Despite repeated follow-ups, no substantive reply came from the firm or the relevant authorities, which prevented DGFT from verifying the facts or facilitating an amicable resolution. In response, DGFT issued the advisory "purely as a precautionary measure" based on the information currently available.

The notice is addressed to Export Promotion Councils, industry associations, Regional Authorities, the Export Credit Guarantee Corporation (ECGC), authorised dealer (AD) banks and other stakeholders, asking them to:

• Conduct comprehensive due diligence before entering into any commercial arrangement with the firm;
• Alert exporters, importers and other trade participants to the concerns;
• Assess transaction risk, including for financial or credit support, trade facilitation and certifications; and
• Promptly report any adverse experiences — payment problems, contract disputes — involving the firm to DGFT.

Why This Matters

A DGFT caution advisory is not a ban, but it is a clear signal. It means a counterparty has been the subject of an unresolved dispute and has not engaged with the Indian authorities to settle it. For an exporter, that raises the risk of non-payment, contract default or a dispute with no easy avenue of redress across a border. Because the advisory also reaches ECGC and AD banks, it can affect the availability or pricing of export credit insurance and trade finance for shipments to this buyer. Acting on the advisory now is far cheaper than chasing an unpaid invoice later.

Who's Affected

Indian exporters — particularly in textiles, garments and allied sectors — considering or already engaged in business with M/s Julfikar Fashions Limited; AD banks and ECGC, which must weigh the advisory in credit and insurance decisions; and Export Promotion Councils and associations expected to relay the caution to their members. The India–Bangladesh corridor carries large volumes of yarn, fabric and intermediate goods, so textile exporters are the most directly exposed.

What Exporters Should Do Now

• Screen your order book. Check whether you have open orders, shipments or receivables involving M/s Julfikar Fashions Limited.
• Tighten payment terms. For any dealing with this counterparty, favour secure terms — an irrevocable (and ideally confirmed) letter of credit or advance payment — over open account.
• Talk to your bank and ECGC. Confirm whether export-credit insurance cover is available for this buyer and on what terms before you ship.
• Do fresh due diligence. Independently verify the counterparty's standing, references and current disputes rather than relying on past dealings.
• Document everything. Keep contracts, correspondence and shipment records in order, so any future claim or report to DGFT is well supported.
• Report problems promptly. If you experience a payment or contract issue with the firm, report it to DGFT as the notice requests — this strengthens the collective picture.

The Bigger Picture

DGFT's QCTD mechanism exists to flag cross-border quality and payment disputes and to protect Indian exporters' interests where a foreign counterparty will not engage. A public caution advisory is one of the few tools available short of formal action, and its reach into the banking and insurance system gives it practical teeth. For exporters, the episode is a reminder that counterparty risk — not just logistics or tariffs — can sink a deal, and that the standard protections of trade finance (letters of credit, credit insurance, staged payments) exist precisely for situations like this.

Frequently Asked Questions

Is M/s Julfikar Fashions Limited banned or blacklisted? No. The notice explicitly describes the advisory as precautionary and states the company is not on any prohibited list. It asks for due diligence and risk assessment, not a prohibition on dealing.

Can I still export to this company? There is no legal bar. But you should apply heightened due diligence, use secure payment terms, and check the availability of export-credit insurance before committing.

Why did DGFT issue the advisory? Because of an unresolved QCTD complaint and the firm's failure to respond to repeated follow-ups, which prevented verification or an amicable resolution.

What should I do if I have a problem with the firm? Report adverse experiences — payment problems, contract disputes — to DGFT, as the trade notice requests.

Conclusion

Trade Notice 31/2026-27 is a precautionary flag, not a prohibition. If you deal — or are considering dealing — with M/s Julfikar Fashions Limited, do fresh due diligence, secure your payment terms, and confirm your credit-insurance position before shipping. The protection costs little; the alternative can cost an entire consignment.

This article is for general guidance only and is not legal advice. Verify the exact text and scope of Trade Notice No. 31/2026-27 on the official DGFT portal (dgft.gov.in) before acting.