CDCS specimen paper

®

Certificate for Documentary Credit Specialists (CDCS )

SPECIMEN PAPER

Length of examination:

3 hours

A qualification jointly examined by the ifs School of Finance and BAFT-IFSA.


CDCS Specimen paper
Section A

1.

A documentary credit for USD 120,000 calls for shipment of fertiliser in February, March, April
and May. Each shipment is to be for about 500 tonnes. Shipments were effected as follows:

1. 450 tonnes on 24 February for value USD 27,000.
2. 550 tonnes on 12 April for value USD 33,000.
3. 460 tonnes on 30 April for value USD 28,000.
4. 550 tonnes on 04 June for value USD 33,000.

Which of the above shipments will be honoured on presentation?

2.

A

1 only.

B

1 and 3 only.

C

2 and 4 only.

D

1, 2 and 3 only.

In accordance with ISP 98, which of the following statements is correct? The issuer of a
standby letter of credit MUST:

3.

A

validate the breach of any underlying transaction.

B

ensure the accuracy of any documents presented.

C

ensure that any documents presented are genuine.

D

honour presentations that appear on their face to comply.

If an exporter is willing to release the shipping documents directly to the buyer, but requires a
guarantee of payment should the buyer default, which of the following BEST suits the exporter’s
needs?

A

Standby.

B

Revolving.

C

Evergreen.

D

Transferable.

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CDCS Specimen paper

4.

A reimbursing bank has received a valid claim under its reimbursement undertaking and is
simultaneously instructed by the issuing bank NOT to honour the claim. In accordance with the
URR 725, the reimbursing bank should:

5.

A

request the claiming bank to cancel the claim.

B

instruct the claiming bank to contact the beneficiary.

C

honour the claim and debit the issuing bank's account.

D

dishonour the claim as per the issuing bank's instruction.

An importer requires goods of a stipulated quality while the exporter requires certainty of
payment. Which of the following would BEST meet all requirements?

A

A confirmed standby credit payable on demand calling for beneficiary's quality certificate.

B

A confirmed documentary credit payable at sight calling for beneficiary's quality certificate.

C

An unconfirmed documentary credit payable at sight with drafts on issuing bank calling for
a third-party quality certificate.

D

A confirmed documentary credit available by acceptance with drafts drawn on confirming
bank calling for a third-party quality certificate.

6.

When an advising bank has accepted a usance draft, it is responsible for effecting payment at
maturity when:

7.

A

the draft is verified by the applicant.

B

the draft is presented by the beneficiary.

C

it has received funds from the issuing bank.

D

it has received funds from the reimbursing bank.

A sight documentary credit authorises a nominated bank to pay the beneficiary. Upon receipt of
complying documents, direct from the beneficiary, the issuing bank should:

A

pay the beneficiary.

B

pay the nominated bank.

C

remit the documents to the nominated bank for examination.

D

return the documents to the beneficiary for presentation to the nominated bank.

Page 3

CDCS Specimen paper
8.

If a credit, available with the issuing bank, calls for a draft at 60 days after sight, it is available
by:

9.

A

payment.

B

negotiation.

C

acceptance.

D

deferred payment.

A documentary credit that will only become available for presentation of shipping documents to
the issuing bank after it has received and approved a performance guarantee is usually
described as:

10.

A

standby.

B

revocable.

C

inoperative.

D

advance payment.

In accordance with UCP 600, which of the following banks MAY have an undertaking to
negotiate complying documents?

1. Issuing bank.
2. Confirming bank.
3. Nominated bank.
4. Reimbursing bank.

11.

A

1 and 2 only.

B

1 and 3 only.

C

2 and 3 only.

D

3 and 4 only.

If a seller in country X wishes to receive payment from a buyer in country Y as soon as possible,
which type of payment SHOULD the documentary credit be made available?

A

Negotiation with a nominated bank in country X.

B

Acceptance by the nominated bank in country X.

C

Sight payment with the issuing bank in country Y.

D

Sight payment with the nominated bank in country X.

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CDCS Specimen paper
12.

Which of the following payment terms are possible under a credit available with, and requiring a
draft drawn on, an issuing bank?

13.

14.

1.

Payment.

2.

Deferred payment.

3.

Acceptance.

4.

Negotiation.

A

1 and 2 only.

B

1 and 3 only.

C

2 and 3 only.

D

3 and 4 only.

The buyer has the LEAST risk by agreeing which of the following payment methods?

A

Documentary credit.

B

Payment in advance.

C

Open account trading.

D

Documentary collection.

The issuing bank of a standby credit, subject to ISP 98, acknowledges an instruction from the
beneficiary to assign proceeds. Which of the following statements is INCORRECT? The rights
of an assignee are subject to:

A

the rights of any other acknowledged assignees.

B

the rights of any other assignees, pending acknowledgement.

C

any other rights or interests that may have priority under the applicable law.

D

the existence of any net proceeds payable to the beneficiary by the person making the
acknowledgement.

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CDCS Specimen paper
15.

16.

17.

In a letter of credit available by acceptance, a confirming bank gives an undertaking to:

1.

accept drafts not accepted by the stipulated drawee bank.

2.

accept drafts not accepted by the issuing bank.

3.

accept drafts drawn on itself.

4.

pay drafts accepted by the drawee bank and unpaid by the drawee bank at maturity.

A

1 and 2 only.

B

1 and 3 only.

C

2 and 4 only.

D

3 and 4 only.

Under a standby letter of credit subject to a participation agreement, the issuer:

A

may sell participations in their rights against the applicant and any presenter.

B

may not disclose relevant applicant information in confidence to potential participants.

C

will affect its obligation under the standby letter of credit by any participations sold.

D

will create new rights and obligations between the beneficiary and the participants.

In accordance with UCP 600, which of the following terms may NOT be altered on a transferred
documentary credit?

A

Credit amount.

B

Required documents.

C

Period for presentation.

D

Amount of insurance cover.

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CDCS Specimen paper
18.

Which of the following examples under UCP 600 is discouraged?

A

The goods description field states "goods per the copy of the proforma invoice appended
to the credit which forms an integral part of the credit".

B

A copy of the sales contract is submitted with the credit application to the issuing bank
and there is no reference to such attachment within the credit application.

C

The additional conditions field states that this credit is relative to sales contract XYZ and
that all documents must state "details per purchase order 123 and contract XYZ".

D

A copy of the purchase order is provided to the issuing bank for information purposes only
and the goods description field of the credit application includes details of the purchase
order.

19.

A standby letter of credit which supports the obligations of an applicant to pay for goods or
services in the event of non-payment by other method is usually described as:

20.

A

a financial standby.

B

a direct-pay standby.

C

a commercial standby.

D

an advance-payment standby.

A cumulative revolving documentary credit is opened with six months' validity and allowing for
USD 25,000 to be drawn each month. A single drawing is made for USD 25,000 in the first
month. What is the available amount in the fourth month?

A

USD 0.

B

USD 25,000.

C

USD 75,000.

D

USD 100,000.

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CDCS Specimen paper
21.

A documentary credit which allows partial shipments has the following shipment schedule:

1,000 units shipped between 01 June and 30 June.
2,000 units shipped between 01 July and 31 July.
2,000 units shipped between 01 August and 31 August.
3,000 units shipped between 01 September and 30 September.

The beneficiary shipped the goods and presented documents as follows:

1. 1,000 units shipped on 15 June, documents presented on 30 June.
2. 3,000 units shipped on 15 July, documents presented on 28 July.
3. 2,000 units shipped on 31 July, documents presented on 15 August.
4. 3,000 units shipped on 15 September, documents presented on 30 September.

Which of the above sets of documents are complying?

22.

A

1 only.

B

3 only.

C

2 and 4 only.

D

1, 2 and 4 only.

A cumulative, revolving documentary credit for USD 22,500 allows full monthly drawings and is
valid for one year. Full monthly drawings were made during the first, second, fourth, fifth and
seventh months and there have been no other drawings. In the last month of the documentary
credit’s validity, what is the maximum value that can be drawn?

A

USD 22,500.

B

USD 112,500.

C

USD 157,500.

D

USD 180,000.

Page 8

CDCS Specimen paper
23.

An advising bank receives the beneficiary's request to partially transfer an irrevocable
transferable documentary credit, which is freely available and does not nominate a transferring
bank. In accordance with UCP 600, the advising bank:

24.

A

may transfer the documentary credit as requested.

B

may transfer the documentary credit only in its entirety.

C

should request the issuing bank to authorise a partial transfer.

D

should obtain the issuing bank's authorisation as the nominated transferring bank.

A documentary credit calls for a draft at 95 days bill of lading date drawn on the confirming bank.
The documentary credit is available by:

25.

A

refinance.

B

acceptance.

C

sight payment.

D

deferred payment.

A documentary credit pre-advice is issued on 01 March for USD 510,000 with the following
terms and conditions:

Partial shipment allowed.
Latest shipment date 30 April.
Expiry date 15 May.

On 02 March the applicant requests an amendment prohibiting partial shipment and extending
the expiry date to 30 May. In accordance with UCP 600, what action MUST the issuing bank
take?

A

Clarify with the applicant the period for presentation.

B

Issue the documentary credit incorporating all the amendments.

C

Issue the documentary credit incorporating only the extended expiry date.

D

Issue the documentary credit as originally instructed, without amendments.

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CDCS Specimen paper
26.

On 03 January, an irrevocable documentary credit for USD 500,000 is confirmed. On 17
January the confirming bank receives an amendment cancelling the documentary credit. What is
the liability of each bank?

27.

A

Issuing and confirming bank - USD 0.

B

Issuing and confirming bank - USD 500,000.

C

Issuing bank - USD 0; confirming bank - USD 500,000.

D

Issuing bank - USD 500,000; confirming bank - USD 0.

The confirming bank receives documents on Friday 02 April and finds them complying on 05
April. Tenor is 30 days after the bill of lading date. The bill of lading is dated 01 April, and the
confirming bank agrees to pay the beneficiary immediately. On what date would the confirming
bank expect to receive funds from the issuing bank? (There are NO bank holidays and
Saturdays and Sundays are NOT banking days.)

28.

A

05 April.

B

30 April.

C

01 May.

D

03 May.

What action should an advising bank take if it receives a documentary credit which includes the
term ‘transmissible’?

29.

A

Disregard the term.

B

Seek clarification from the issuing bank.

C

Refuse to advise the documentary credit.

D

Advise the documentary credit as transferable.

A documentary credit is issued with drafts at 45 days sight drawn on the confirming bank.
Under special conditions it states 'drafts can be discounted and paid on a sight basis'. The

applicant’s account will be debited at:

A

maturity by the issuing bank.

B

maturity by the confirming bank.

C

the time of acceptance by the issuing bank.

D

the time of acceptance by the confirming bank.

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CDCS Specimen paper
30.

Documents presented to the issuing bank have been found discrepant. The bank has left a
message for the applicant to discuss the discrepancies. The bank should:

A

return the documents to the presenter.

B

continue to hold the documents until discussion with the applicant. No further action is
required.

C

send notice of refusal to the presenter without listing discrepancies as the applicant has
not been consulted.

D

send notice of refusal by the close of the fifth banking day following presentation, listing all
discrepancies and current disposition of the documents.

31.

A documentary credit calls for the beneficiary's invoice in 3 copies. Which of the following
requirements is mandatory for a complying presentation?

32.

A

All must be signed.

B

All must be original.

C

At least one of the three must be signed.

D

At least one of the three must be original.

Documents, including the CMR consigned to the order of the issuing bank, have been delayed
in transit between the confirming bank and the issuing bank. The applicant requires the goods
urgently and therefore requests from the issuing bank a:

33.

A

delivery order.

B

letter of indemnity.

C

performance guarantee.

D

shipping company guarantee.

A third-party supplier requires a notice of assignment from the nominated bank prior to shipping
the goods. This notice of assignment:

A

is an irrevocable undertaking to pay the third-party supplier.

B

authorises the third-party supplier to perform the role of the beneficiary.

C

guarantees payment upon presentation of documents by the third-party supplier.

D

is a conditional undertaking from the nominated bank to pay the third-party supplier from
proceeds, if any, payable under the credit.

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CDCS Specimen paper
34.

A documentary credit requires presentation of a full set of bills of lading or a letter of indemnity in
lieu of the bills of lading. These documentary requirements are typically associated with the
shipment of:

35.

A

oil.

B

cars.

C

heavy machinery.

D

perishable foodstuffs.

Which of the following statements would NOT be included in an applicant's counter indemnity
when requesting a delivery order?

The applicant:

A

indemnifies the bank against all actions, damages and costs.

B

undertakes to accept the underlying documents irrespective of discrepancies.

C

gives the issuing bank authority to debit its account for the full value pending inspection of
the goods.

D

undertakes that should the goods form part of a large consignment it will accept that
consignment and pay the full value.

36.

Which of the following statements is correct under a common syndicate agreement?

A

Amendments to the documentary credit will only bind the lead bank.

B

The documentary credit must stipulate the risk participation of each syndicate bank.

C

The value of the documentary credit, the goods, the validity for shipment and expiry
should be covered.

D

Each participating bank draws up a syndicate agreement and each of these agreements
is countersigned by the lead bank.

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CDCS Specimen paper
37.

Which of the following Incoterms is correctly described?

Incoterm

38.

Insurance Doc.

Transport Doc.

A

DDP

Required

Marked freight paid.

B

CFR

Required

Marked freight collect.

C

FOB

Not required

Marked freight paid.

D

FCA

Not required

Marked freight collect.

Under Incoterms 2010, which of the following terms are applicable for any mode or modes of
transport?

1. FCA.
2. FAS.
3. CFR.
4. CIP.

39.

A

1 and 3 only.

B

1 and 4 only.

C

2 and 3 only.

D

2 and 4 only.

To clear the goods in the absence of an original bill of lading, which document should the
applicant request from the issuing bank?

A

An indemnity.

B

A delivery order.

C

A payment guarantee.

D

A shipping company guarantee.

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CDCS Specimen paper
40.

A beneficiary requests the confirming bank to purchase complying documents presented under
a deferred payment credit. In accordance with UCP 600, which of the following actions could
the confirming bank take?

1. Obtain the issuing bank's agreement prior to paying the beneficiary.
2. Refuse the beneficiary's request while undertaking to pay at maturity.
3. Prepay the deferred payment undertaking.
4. Obtain a recourse agreement from the beneficiary.

41.

A

1 only.

B

4 only.

C

2 and 3 only.

D

3 and 4 only.

Which of the following statements is NOT correct for a credit that is subject to UCP 600? If the
credit:

A

prohibits transhipment, an air transport document may indicate that transhipment will or
may take place.

B

requires a bill of lading indicating freight prepaid, a notation of freight prepaid as per
charter party is acceptable.

C

calls for one original rail transport document, presentation of a rail transport document
marked ‘duplicate’ is acceptable.

D

calls for a multimodal transport document made out to order, an endorsement made by,
for or on behalf of the shipper is required.

42.

A documentary credit states that shipment must be made on or about 27 June. Which of the
following shipment dates would be acceptable?

1. 20 June.
2. 27 June.
3. 02 July.
4. 03 July.

A

2 only.

B

1 and 4 only.

C

2 and 3 only.

D

2, 3 and 4 only.

Page 14

CDCS Specimen paper
43.

A standby credit issued subject to ISP 98 requires presentation of a court order in duplicate
originals. Which of the following presentations would satisfy that requirement?

44.

A

Two copies.

B

Two originals.

C

One original and one copy.

D

One original and two copies.

Which of the following banks MUST examine a presentation to determine whether it is
complying or not?

45.

A

The advising bank.

B

The confirming bank.

C

The nominated bank.

D

The reimbursing bank.

When an advising bank adds its confirmation to a documentary credit, which of the following
risks has the beneficiary mitigated?

1. Issuing bank.
2. Foreign exchange.
3. Political.
4. Fraud.

46.

A

1 and 3 only.

B

1 and 4 only.

C

2 and 3 only.

D

2 and 4 only.

Prior to advising a documentary credit to the beneficiary, the advising bank is responsible for:

A

effecting payment against conforming documents.

B

checking that the reimbursement method is effective.

C

checking the apparent authenticity of the documentary credit.

D

notifying the issuing bank that the documentary credit is being advised.

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CDCS Specimen paper
47.

When a bank confirms an irrevocable transferable documentary credit it assumes the credit risk
of which party?

48.

A

The applicant.

B

The issuing bank.

C

The first beneficiary.

D

The second beneficiary.

An irrevocable confirmed documentary credit CANNOT be amended or cancelled without the
agreement of the:

49.

A

beneficiary and applicant.

B

confirming bank and issuing bank.

C

applicant, confirming bank and issuing bank.

D

beneficiary, confirming bank and issuing bank.

In accordance with UCP 600, which of the following terms can a first beneficiary change in its
transfer request?

50.

A

Decrease the unit price.

B

Decrease insurance cover.

C

Extend the expiry date.

D

Extend the latest shipment date.

A bank issues a clean credit for GBP 50,000. Which of the following presentations would be
acceptable under this credit?

A

A credit note for GBP 50,000.

B

A simple receipt for GBP 48,000.

C

A draft for GBP 48,000 drawn on the issuing bank.

D

An invoice for GBP 50,000 addressed to the applicant.

Page 16

CDCS Specimen paper
51.

A transferable credit can do which of the following?

A

Protect the applicant from the risks of loss and error.

B

Allow the second beneficiary to obtain payment for complying documents.

C

Restrict the right of the second beneficiary to claim payment directly from the transferring
bank.

D

Permit the second beneficiary to provide the first beneficiary with the security of a
documentary credit.

52.

Which of the following statements is correct regarding transferable documentary credits?

A

The first beneficiary may request that confirmation be withheld from the transferred credit.

B

The first beneficiary may cancel the transferred credit without the second beneficiary's
consent.

C

A transferred credit can be transferred at the request of the second beneficiary to any
subsequent beneficiary.

D

The transferred credit may expire in the second beneficiary's domicile on the expiry date
of the first beneficiary's credit.

53.

Which documentary credit enables a beneficiary to obtain pre-shipment financing without
impacting his facility?

54.

A

Transferable.

B

Red clause.

C

Irrevocable, payable at sight.

D

Confirmed irrevocable, payable at maturity.

Which of the following statements is correct when an assignment of proceeds has been effected
under a documentary credit issued in accordance with UCP 600?

The:

A

assignee must present complying documents to receive payment.

B

assignee will receive payment of the proceeds directly from the applicant.

C

value of the documentary credit is reduced by the amount of the assignment.

D

beneficiary has assigned its rights to the stated amount of proceeds to the assignee.

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CDCS Specimen paper
55.

56.

An issuer of a standby credit subject to ISP 98 is responsible for:

A

accuracy of any document.

B

act of omission by the nominated bank.

C

observance of law as stated in the standby.

D

performance of any underlying transactions.

Which of the following statements are correct? A documentary credit is issued in accordance
with UCP 600 if available with:

1. any bank by deferred payment, no drafts required.
2. the nominated bank by acceptance, term drafts drawn on the issuing bank.
3. the issuing bank by negotiation, drafts drawn on the issuing bank.
4. the issuing bank by acceptance, term drafts drawn on the issuing bank.

57.

A

1 and 2 only.

B

1 and 4 only.

C

2 and 3 only.

D

3 and 4 only.

A documentary credit prohibits partial shipment. Two sets of original charter party bills of lading
are presented covering shipment from two different ports of loading within a geographical area
stated in the credit. To be complying, the bills of lading must indicate:

1. shipment to the same port of discharge.
2. same date of shipment.

3. shipment on the same vessel.
4. same journey.

A

1 and 4 only.

B

2 and 3 only.

C

1, 2 and 3 only.

D

1, 3 and 4 only.

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CDCS Specimen paper
58.

In accordance with UCP 600, an invoice may show:

1. deduction for a discount not stated in the credit.
2. over-shipment of goods provided they are stated to be free of charge.
3. shipment of goods not called for in the credit.

4. shipment of goods not called for in the credit provided they are stated to be free of charge.

59.

A

1 only.

B

2 only.

C

1 and 3 only.

D

2 and 4 only.

An issuing bank's instruction to a reimbursing bank requesting issuance of a reimbursement
undertaking subject to URR 725 must indicate:

1. if partial drawings are allowed.
2. latest date for presentation of a claim, including any usance period.
3. expiry date of the documentary credit.
4. that the claiming bank must certify compliance with the credit terms.

60.

A

2 only.

B

3 only.

C

1, 2 and 3 only.

D

2, 3 and 4 only.

Notice of completeness under eUCP is sent by the:

A

issuing bank to the confirming bank confirming receipt of electronic and paper documents.

B

presenting bank to the confirming or the issuing bank signifying that the presentation is
completed.

C

beneficiary to the bank to which presentation is made signifying that the presentation is

completed.

D

bank to which presentation is made to the beneficiary signifying that the bank has
received the complete presentation.

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CDCS Specimen paper
61.

A credit requires an 'invoice' without further definition. Which of the following MUST be
considered a discrepancy?

An invoice:

62.

A

which is not signed.

B

identified as a tax invoice.

C

made out in a different currency to the credit.

D

issued for an amount in excess of that permitted by the credit.

A documentary credit is issued for GBP 60,000 and calls for drafts at 30 days from bill of lading
date. Documents have been presented with a bill of lading dated 09 November. Which of the
following tenors on the draft will NOT be acceptable?

63.

A

09 December.

B

30 days after 09 November.

C

30 days from bill of lading date.

D

30 days date, draft dated 09 November.

If a credit states that GBP 10,000 may be drawn each month during its one-year validity, then
the credit is:

64.

A

clean.

B

revolving.

C

evergreen.

D

transferable.

Where a documentary credit includes a shipping schedule and an instalment is NOT shipped
within the stipulated period, which of the following statements concerning the documentary
credit is correct?

A

It continues to be available for that instalment only.

B

It continues to be available for that and other instalments.

C

It ceases to be available for that instalment only.

D

It ceases to be available for that and other instalments.

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CDCS Specimen paper
65.

A marine bill of lading acts as:

1. an acknowledgement of receipt of the goods by the carrier.
2. evidence of a contract of carriage.
3. a document of title for the goods.
4. evidence of the contract between the seller and the forwarding agent.

66.

A

1 and 3 only.

B

2 and 4 only.

C

1, 2 and 3 only.

D

2, 3 and 4 only.

A documentary credit calls for invoices for the full CIF value and insurance certificate covering
all risks. Documents presented include invoices for the CIF value of USD 150,000 certifying to
shipment on 10 February less discount of USD 25,000 and insurance policy for USD 137,500
effective from 09 February covering Institute Cargo Clauses A.

According to UCP 600, all of the following statements are correct EXCEPT:

67.

A

an insurance policy is acceptable.

B

the amount of the insurance cover is sufficient.

C

the insurance document does not cover all risks.

D

there was no insurance cover for the whole movement of goods.

If a documentary credit expires for presentation at the issuing bank's counters with drafts drawn
on the issuing bank 90 days after sight, it is available by:

A

negotiation.

B

acceptance.

C

sight payment.

D

deferred payment.

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CDCS Specimen paper
68.

Which party has the MOST responsibility to examine the terms and conditions of a documentary
credit against the sales agreement?

69.

70.

71.

A

Applicant.

B

Beneficiary.

C

Issuing bank.

D

Confirming bank.

Which of the following documents MUST be signed?

A

Packing list.

B

Certificate of origin.

C

Commercial invoice.

D

Weight specification.

Which of the following statements is INCORRECT in accordance with UCP 600?

A

An insurance certificate is acceptable in lieu of an insurance policy.

B

An insurance document covering all risks may contain risk exclusions.

C

An insurance document may indicate that the cover is subject to a franchise.

D

A percentage of insurance coverage required in the credit is deemed the minimum.

Which of the following makes a bill of lading discrepant unless the credit states otherwise?

A

The absence of any notify party.

B

The absence of any shipping marks.

C

An indication that the goods will be loaded on deck.

D

An indication thereon that charges additional to freight will be levied.

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CDCS Specimen paper
72.

Which of the following documents must be presented to the carrier to obtain release of the
underlying goods?

1. Air transport document.
2. Bill of lading.

3. Charter party bill of lading.
4. Non-negotiable sea waybill.

73.

74.

A

1 and 2 only.

B

1 and 4 only.

C

2 and 3 only.

D

3 and 4 only.

Which of the following is an example of a straight consigned bill of lading? A bill of lading:

A

issued to order and blank endorsed.

B

issued to the order of a named party.

C

consigned to a named party.

D

consigned to the order of a named party.

In accordance with UCP 600, which of the following documents are deemed transport
documents?

1. Courier receipts.
2. Forwarders' receipts.
3. Mates' receipts.
4. Postal receipts.

A

1 and 3 only.

B

1 and 4 only.

C

2 and 3 only.

D

2 and 4 only.

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CDCS Specimen paper
75.

76.

77.

Which of the following are financial documents?

A

Bills of lading.

B

Bills of exchange.

C

Certificates of origin.

D

Commercial invoices.

Which of the following clauses or notations on a bill of lading constitutes a clause?

A

Oil drums are leaking.

B

Highly flammable material.

C

Potentially explosive material.

D

Refrigerated seafood, may spoil during voyage.

Which of the following percentages represent the minimum insured value on the insurance
document, unless otherwise stated in the documentary credit?

78.

A

100%.

B

105%.

C

110%.

D

115%.

In accordance with UCP 600, all the following statements relating to commercial invoices are
correct EXCEPT that they must:

A

be manually signed by the beneficiary.

B

be made out in the name of the applicant.

C

appear to have been issued by the named beneficiary.

D

indicate the description of goods corresponding with the documentary credit.

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CDCS Specimen paper
79.

A documentary credit calls for a commercial invoice, but documents presented include only a
customs invoice. What action should the confirming bank take?

80.

81.

82.

A

Pay the documents as fully complying.

B

Reject the documents as non-complying.

C

Refer to the issuing bank for authority to pay.

D

Return the documents for amendment by the beneficiary.

An issuing bank becomes bound by the terms of an amendment when the:

A

advising bank advises the amendment to the beneficiary.

B

issuing bank issues the amendment to the advising bank.

C

reimbursing bank agrees to the applicant's request for an amendment.

D

beneficiary accepts the amendment whether expressly or by implication.

A standby credit subject to ISP 98 states that it is not operative. Therefore it is:

A

irrevocable from date of issue.

B

deemed not to have been issued.

C

available for drawing immediately.

D

revocable prior to becoming operative.

If a bank requests that an electronic record be re-presented because the initial presentation
appears to be corrupted, the:

A

date of the re-presentation becomes the new presentation date.

B

beneficiary has 21 calendar days to re-present the electronic record.

C

time for examination is suspended and resumes when the re-presented records are
received.

D

re-presentation may be with paper documents even if the documentary credit calls for
electronic records.

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