Random Riddle: Flag Day

Fred ran a flag making business. Things were looking bleak when, out of the blue, someone called from the Paraguayan Embassy. They needed an urgent consignment of 1000 Paraguayan flags by the following week.

Fred got to work straight away. He got a picture of the current Paraguayan flag, got hold of the required cloth and he and his staff worked without stopping until the flags were dispatched. The business was saved, or so he thought.

Unfortunately, the Embassy refused to pay and returned them all. Fred has now lost his business, but why?
 

Random Riddle: Flag Day