DGFT Advisory on 2 Bhutanese Firms: Indian Exporters Advised to Exercise Caution

The Directorate General of Foreign Trade (DGFT) has issued Trade Notice No. 19/2026-27 dated 11 August 2026, advising Indian exporters and trade stakeholders to exercise heightened vigilance while dealing with two Bhutanese firms.

Which Bhutanese Firms Are Covered?

The DGFT advisory relates to the following entities based in Thimphu, Bhutan:

M/s Legoy Powersports, Thimphu
M/s Druk A-Z Store, Thimphu

According to the Trade Notice, a complaint was received against these entities. DGFT states that the matter was taken up through appropriate diplomatic and administrative channels under the Foreign Trade Policy (FTP), 2023. Despite repeated efforts and follow-up communications, no substantive response was received from the concerned firms or relevant authorities, which impeded efforts to verify the facts and achieve an amicable resolution.

DGFT Trade Notice No. 19/2026-27 advisory covering two Bhutanese firms in Thimphu, Legoy Powersports and Druk A-Z Store, with exporter due-diligence warning.

What Has DGFT Advised?

To safeguard the interests of Indian exporters and trade stakeholders, DGFT has advised EPCs, Regional Authorities, ECGC, Authorized Dealer Banks and other concerned stakeholders to exercise heightened vigilance while dealing with these entities.

Stakeholders have specifically been advised to:

Conduct comprehensive due diligence before entering into any commercial arrangement or transaction.
Sensitize exporters, importers and other trade participants about the concerns associated with these entities.
Carefully assess the risk profile of proposed transactions.
Take the advisory into consideration while providing financial or credit support, trade facilitation services, certifications or recommendations.
Promptly report any payment-related issues, contractual disputes or adverse experiences involving these firms to DGFT.

DGFT advisory urging Indian exporters and trade stakeholders to exercise heightened vigilance, conduct due diligence, assess transaction risks, and report payment or contractual issues involving the mentioned entities.

Is This a Ban on Doing Business?

The Trade Notice describes the advisory as purely a precautionary measure based on the information presently available. Its purpose is to alert the trading community about potential risks associated with dealings involving the mentioned entities.

Therefore, exporters should read the notice as a risk and due-diligence advisory, rather than assume that the Trade Notice itself declares a general prohibition on transactions with these firms.

Trade Notice advisory explaining that the notice is a precautionary risk and due-diligence advisory, not a general ban on doing business with the mentioned firms.

Key Takeaway for Indian Exporters

The DGFT Trade Notice No. 19/2026-27 highlights the importance of proper overseas buyer due diligence and transaction risk assessment.

Businesses considering transactions with M/s Legoy Powersports or M/s Druk A-Z Store should review the DGFT advisory carefully and exercise enhanced caution before proceeding.

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