DGFT Cautions Exporters Dealing With a Bangladesh Buyer: Trade Notice 31/2026-27

What changed, who it affects, what to do: On 21 October 2026, the Directorate General of Foreign Trade (DGFT) issued Trade Notice No. 31/2026-27, advising Indian exporters, importers and trade facilitators to exercise heightened caution and due diligence before entering into any commercial dealing with M/s Julfikar Fashions Limited, Mirpur, Bangladesh. The advisory follows an unresolved trade-dispute complaint and is precautionary — it does not ban dealings, but it puts the trade on notice.

What Happened

DGFT's Quality Control & Trade Dispute (QCTD) Division received a complaint against M/s Julfikar Fashions Limited under paragraph 8.07(d) of the Foreign Trade Policy, 2023. According to the Trade Notice, DGFT pursued the matter through diplomatic and administrative channels but, despite repeated follow-ups, "no substantive response" was received from the firm or the relevant authorities. Having exhausted those routes, DGFT published the advisory so that the wider trade community is aware of the concern before transacting with the party.

The notice is explicitly described as precautionary. It stops short of declaring the firm a denied or blacklisted entity; instead, it asks stakeholders to factor the unresolved dispute into their own commercial risk decisions.

Why This Matters / Background

Paragraph 8.07 of the FTP deals with trade disputes and complaints involving Indian and foreign parties. DGFT periodically issues advisories of this kind when a cross-border commercial dispute cannot be resolved through engagement with the foreign party or its government. These notices are a risk-signalling tool: they do not adjudicate the dispute or assign fault, and the notice here does not specify whether the underlying complaint concerns non-payment, a quality rejection or another contractual issue.

For exporters, the practical value is early warning. A single unresolved dispute with an overseas buyer can tie up working capital, create bank-realisation problems under the FEMA regime, and leave goods stranded abroad. An advisory lets exporters price that risk before shipping.

Who's Affected

The notice is relevant to any Indian exporter or importer considering business with the named Bangladesh firm, and to the ecosystem around them — banks weighing financial or credit support, ECGC and private credit insurers, freight forwarders and customs house agents arranging shipments, and export promotion councils and chambers that certify or facilitate trade. Apparel and textile exporters are the most likely to encounter the party given its line of business, but the advisory applies across the board.

What Exporters, Forwarders and CHAs Should Do Now

• Screen current and prospective contracts for any exposure to M/s Julfikar Fashions Limited, Mirpur, Bangladesh, including through intermediaries or agents.
• For any proposed transaction, complete thorough due diligence and weigh the risk before committing; consider secure payment terms such as a confirmed irrevocable letter of credit or advance payment rather than open account.
• Review export credit insurance cover (ECGC or private) for shipments to the buyer, and confirm the insurer is aware of the advisory.
• Forwarders and CHAs should flag the advisory to clients booking shipments to this consignee and document that the caution was communicated.
• Report any adverse experience, payment default or contract dispute involving the firm to DGFT, so the record is complete.
• If you are a council or chamber, circulate the advisory to members.

The Bigger Picture

Advisories like this are a routine part of DGFT's trade-facilitation toolkit as India's export base widens and more MSMEs deal directly with overseas buyers. They complement, rather than replace, an exporter's own counterparty checks. The responsible approach is to treat the notice as one input into a standard credit and compliance review — not as a reason to panic, and not as a substitute for secure payment terms and insurance.

Frequently Asked Questions

Does this notice ban trade with the firm? No. It is a precautionary advisory urging extra due diligence. It does not prohibit dealings or declare the party a denied entity.

What is FTP paragraph 8.07(d)? It is the provision of the Foreign Trade Policy, 2023 under which DGFT handles trade disputes and complaints. The complaint against the firm was filed under this paragraph.

What was the dispute about? The Trade Notice does not state whether it concerns payment, quality or another issue. Exporters should not assume the nature of the dispute from the advisory alone.

I already have a contract with this buyer. What should I do? Re-check your payment security and insurance, document your due diligence, and consider engaging your bank and credit insurer. If you face any problem, report it to DGFT.

Conclusion

Trade Notice 31/2026-27 is a measured, precautionary signal, not a prohibition. The sensible response is stronger counterparty due diligence, secure payment terms and adequate credit insurance for any dealing with the named Bangladesh firm — and prompt reporting of any adverse experience back to DGFT.

This summary is for general guidance. Verify the text and scope of Trade Notice No. 31/2026-27 on the official DGFT portal (dgft.gov.in) before acting.