DGFT Issues Advisory on Two Bhutanese Firms

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

The advisory follows a complaint concerning M/s Legoy Powersports, Thimphu and M/s Druk A-Z Store, Thimphu. According to DGFT, repeated efforts to obtain a substantive response from the concerned firms or relevant authorities did not result in adequate cooperation, making it difficult to verify the facts and resolve the matter amicably.

DGFT Names Two Bhutanese Firms in Trade Advisory

The two entities identified in the DGFT advisory are:

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

DGFT has issued the advisory as a precautionary measure to safeguard the interests of Indian exporters and other trade stakeholders.

Why Has DGFT Issued the Advisory?

DGFT stated that the matter was pursued through appropriate diplomatic and administrative channels under the Foreign Trade Policy (FTP), 2023. However, the continued lack of substantive cooperation prevented the authorities from verifying the facts of the complaint and reaching an amicable resolution.

What Should Indian Exporters Do?

DGFT has advised stakeholders to take additional precautions before entering into commercial arrangements or transactions with the two entities.

1. Conduct Enhanced Due Diligence

Exporters and other businesses should undertake comprehensive due diligence before entering into any commercial arrangement or transaction involving the identified entities.

2. Assess the Transaction Risk

Stakeholders have been advised to carefully evaluate the risk profile of proposed transactions involving these firms. This risk assessment should also be considered when processing applications, providing financial or credit support, offering trade facilitation services, or issuing certifications and recommendations.

3. Keep Exporters and Trade Participants Informed

The advisory asks relevant stakeholders to sensitise and appropriately advise exporters, importers and other trade participants about the concerns associated with the identified entities.

4. Report Adverse Experiences to DGFT

Any adverse experience, including payment-related issues, contractual disputes or other relevant information, should be promptly reported to DGFT for further examination and necessary action.

Who Should Take Note of the Advisory?

The advisory is specifically addressed to and relevant for:

  • Export Promotion Councils (EPCs)
  • Regional Authorities (RAs) of DGFT
  • Export Credit Guarantee Corporation of India Ltd. (ECGC)
  • Authorised Dealer Banks
  • Exporters, importers and other trade participants
  • Other stakeholders involved in trade facilitation, financial support and certifications

DGFT has asked these stakeholders to exercise heightened vigilance in dealings involving the two named Bhutanese firms.

Note:

DGFT has clarified that the advisory is being issued purely as a precautionary measure based on the information presently available. It is intended to alert the trading community about potential risks associated with dealings involving the mentioned entities.

What This Means for Exporters

For Indian exporters considering transactions with the identified entities, the advisory highlights the importance of performing adequate commercial due diligence before proceeding.

Businesses should pay particular attention to transaction risk, payment-related concerns and contractual issues, while keeping relevant documentation and information available for review. Any adverse experience should be communicated to DGFT as advised in the Trade Notice.

Conclusion

DGFT’s Trade Notice No. 19/2026-27 serves as a precautionary alert concerning dealings with M/s Legoy Powersports and M/s Druk A-Z Store, both based in Thimphu, Bhutan. Indian exporters and trade stakeholders should take the advisory into account when evaluating proposed transactions with these entities.

The key takeaway is clear: conduct enhanced due diligence, assess transaction risks carefully and report relevant adverse experiences to DGFT.

Notification Reference:

DGFT
Trade Notice No. 19/2026-27
11/08/2026

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