DGFT advisory asks exporters, banks and ECGC to exercise heightened vigilance with two Thimphu-based firms: Trade Notice 19/2026-27 under para 8.07(d) of FTP 2023
DGFT has issued a precautionary advisory under para 8.07(d) of the Foreign Trade Policy 2023 against two Bhutanese entities — M/s Legoy Powersports and M/s Druk A-Z Store, both of Thimphu — after a complaint could not be resolved for want of response. EPCs, Regional Authorities, ECGC and AD banks are advised to exercise enhanced caution and due diligence.
Key facts
- In force
- Advisory dated 11 August 2026
- Who it affects
- Indian exporters trading with Bhutan, Export Promotion Councils, ECGC, Authorised Dealer banks, DGFT Regional Authorities
- What it is
- Clarified
- Section
- Foreign Trade
- Published
- 11 August 2026
In 30 seconds
- Trade Notice No. 19/2026-27 is dated 11 August 2026 and is issued by the QCTD Division of DGFT.
- The entities named are M/s Legoy Powersports, Thimphu and M/s Druk A-Z Store, Thimphu.
- A complaint was taken up through diplomatic and administrative channels; no substantive response was received despite repeated follow-up.
- Stakeholders are advised to undertake comprehensive due diligence before any commercial arrangement or transaction with the two entities.
- The risk is to be weighed while processing applications, extending financial or credit support, or issuing certifications and recommendations.
- DGFT describes the advisory as purely a precautionary measure based on the information presently available.
हिंदी में सार
DGFT ने Trade Notice 19/2026-27 (11 अगस्त 2026) से विदेश व्यापार नीति 2023 के पैरा 8.07(d) के तहत थिम्पू की दो भूटानी फ़र्मों — M/s Legoy Powersports और M/s Druk A-Z Store — के बारे में एहतियाती सलाह जारी की है। शिकायत पर बार-बार संपर्क के बावजूद कोई ठोस जवाब नहीं मिला। निर्यातकों, EPC, ECGC और AD बैंकों को इन फ़र्मों से लेन-देन से पहले पूरी जाँच-पड़ताल करने और किसी भी भुगतान या अनुबंध विवाद की सूचना DGFT को देने की सलाह दी गई है।
What the advisory says
By Trade Notice No. 19/2026-27 dated 11 August 2026, addressed to all Export Promotion Councils, the Export Credit Guarantee Corporation and all Regional Authorities of DGFT, the Directorate General of Foreign Trade has issued an advisory against two Bhutanese firms as per para 8.07(d) of the Foreign Trade Policy 2023.
A complaint was received against:
- M/s Legoy Powersports, Thimphu
- M/s Druk A-Z Store, Thimphu
Why it was issued
According to the notice, the matter was taken up through the appropriate diplomatic and administrative channels in accordance with the FTP 2023, with a view to facilitating resolution of the issues raised in the complaint. Despite repeated efforts and follow-up communications, no substantive response was received from the firms or the relevant authorities. DGFT records that the continued absence of cooperation and engagement has impeded efforts to verify the facts of the case and achieve an amicable resolution.
The notice does not describe the nature of the complaint or the amount involved.
What stakeholders are advised to do
In the interest of safeguarding Indian exporters and trade stakeholders, DGFT advises EPCs, Regional Authorities, ECGC, Authorised Dealer banks and other concerned stakeholders to exercise heightened vigilance while dealing with the two entities. Specifically:
| No. | Advice |
|---|---|
| (i) | Exercise enhanced caution and undertake comprehensive due diligence before entering into any commercial arrangement or transaction with the entities |
| (ii) | Sensitise and appropriately advise exporters, importers and other trade participants about the concerns associated with these entities |
| (iii) | Carefully assess the risk profile of any proposed transaction involving them, and take this development into consideration while processing applications, extending financial or credit support, providing trade facilitation services, or issuing certifications and recommendations |
| (iv) | Promptly report any adverse experience, payment-related issue, contractual dispute or other relevant information concerning these entities to DGFT for further examination and necessary action |
How to read the advisory
DGFT states that the advisory is issued purely as a precautionary measure, based on the information presently available, and is intended to alert the trading community to the potential risks associated with dealings involving the two entities. It notes that the facts of the case could not be verified because no response was received. The notice does not prohibit trade with the two firms; it asks for caution, due diligence and reporting.
What exporters should do
An Indian exporter with an existing or proposed order from either entity should carry out due diligence before committing to the transaction, expect its bank, ECGC or EPC to take the advisory into account when it seeks credit, cover or a certification, and report any payment problem or contractual dispute with these entities to DGFT.
Questions and answers
Which firms does Trade Notice No. 19/2026-27 name?
M/s Legoy Powersports, Thimphu and M/s Druk A-Z Store, Thimphu — two Bhutanese entities against which a complaint was received.
Does the advisory ban trade with these firms?
The notice does not prohibit dealings. It advises stakeholders to exercise enhanced caution and undertake comprehensive due diligence before entering into any commercial arrangement or transaction with them, and describes itself as purely a precautionary measure.
Why did DGFT issue it?
The complaint was taken up through diplomatic and administrative channels, but despite repeated efforts and follow-up communications no substantive response was received from the firms or the relevant authorities, which impeded efforts to verify the facts and resolve the matter.
What should banks, ECGC and EPCs do?
Assess the risk profile of any proposed transaction involving the two entities and take the advisory into consideration while processing applications, extending financial or credit support, providing trade facilitation services, or issuing certifications and recommendations.
Where should problems with these entities be reported?
Any adverse experience, payment-related issue, contractual dispute or other relevant information is to be reported promptly to DGFT for further examination and necessary action.
Published 11 August 2026. Updated 7 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.