DGFT Advisory: Exercise Caution in Dealings with Bangladesh's Julfikar Fashions Limited

The Directorate General of Foreign Trade (DGFT) has issued a precautionary advisory asking Indian exporters, importers and trade stakeholders to exercise heightened due diligence before entering into commercial arrangements with M/s Julfikar Fashions Limited, Mirpur, Bangladesh. The advisory is contained in Trade Notice No. 31/2026-27, dated 21 October 2026, issued by DGFT's QCTD (Quality Complaints and Trade Disputes) Division under paragraph 8.07(d) of the Foreign Trade Policy, 2023.

If you trade — or are negotiating to trade — with this entity, read this before signing anything or extending credit.

What Happened

A Quality Control & Trade Dispute complaint was filed against M/s Julfikar Fashions Limited. DGFT says it pursued the matter through diplomatic and administrative channels but, despite repeated follow-ups, received no substantive response from the firm or the relevant authorities. That lack of cooperation, DGFT notes, prevented verification of the facts and an amicable resolution.

DGFT is explicit that the advisory is "purely precautionary" and based on currently available information. It is a caution to the trade, not a finding of guilt or a ban.

Why / Background

Paragraph 8.07 of the Foreign Trade Policy gives DGFT a role in handling quality complaints and trade disputes involving cross-border transactions. When a foreign counterparty will not engage with the dispute-resolution process, DGFT can alert the Indian trade community so that others can factor the risk into their own commercial decisions. This is a well-established mechanism to protect exporters from counterparties with an unresolved track record — most often used where payment, contract performance or quality disputes cannot be settled through normal channels.

Who's Affected

• Indian exporters — particularly in textiles, apparel and allied products — negotiating with or already dealing with the named firm.
• Export Promotion Councils and industry associations, asked to circulate the caution to members.
• ECGC (export credit insurer) and authorised dealer (AD) banks, who are asked to factor the advisory into credit, insurance and trade-finance decisions.
• DGFT Regional Authorities, in handling applications, certifications and recommendations linked to the entity.

What Exporters and Forwarders Should Do Now

• Pause and screen. If you have a live or proposed transaction with Julfikar Fashions Limited, pause to conduct thorough due diligence before proceeding.
• De-risk payment terms. Prefer secure instruments — an irrevocable, confirmed letter of credit or advance payment — over open-account or document-against-acceptance terms for any dealing with the entity.
• Check your credit insurance. Confirm with ECGC whether cover is available and on what terms for this buyer; a named advisory can affect cover.
• Brief your bank. Alert your AD bank so trade-finance and remittance decisions reflect the advisory.
• Review existing exposure. If you already have shipments, receivables or contracts outstanding with the firm, assess recovery risk and tighten follow-up on payments.
• Report your experience. DGFT has asked stakeholders to report adverse experiences, payment problems, contractual disputes or other relevant information about the entity, which helps build an accurate picture.

The Bigger Picture

Counterparty-risk advisories are a reminder that market access is only half the job — getting paid is the other half. For exporters chasing volume in fast-growing regional markets, a single defaulting or uncooperative buyer can wipe out the margin on many good orders. Treat DGFT caution advisories as a free credit-risk signal: they do not prohibit trade, but they shift the burden onto you to transact on secure terms. Building due-diligence and secure-payment habits into every new-buyer relationship is the durable lesson here.

Frequently Asked Questions

Is it illegal to deal with this company now? No. The advisory is precautionary. It does not ban trade; it asks you to do heightened due diligence and make an informed, risk-weighted decision.

Why did DGFT issue this? A quality-control and trade-dispute complaint against the firm could not be verified or resolved because the firm and relevant authorities did not respond substantively to DGFT's follow-ups.

What payment terms are safest if I still want to trade? Favour an irrevocable, confirmed letter of credit or advance payment over open-account terms, and check whether ECGC cover is available for the buyer.

How do I report a problem with this entity? DGFT has invited stakeholders to report adverse experiences, payment issues and contractual disputes about the entity through its QCTD Division channels; your Export Promotion Council can also route the information.

Conclusion

This is a low-effort, high-value check for anyone trading toward Bangladesh in apparel and allied goods: screen any dealing with Julfikar Fashions Limited, insist on secure payment terms, confirm credit insurance, and report problems to DGFT. The advisory does not stop you trading — it tells you to trade carefully.

This article is for general guidance only. Verify the contents and current status against DGFT Trade Notice No. 31/2026-27 on the official DGFT portal at dgft.gov.in before acting.