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CDCSSAMPLEQUESTION
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CDCSSAMPLEQUESTION
COPYRIGHTTOLEE.COM

CDCSUCP

CDCS means

"Certified Documentary
Credit Specialist",
a certification
administeredbyIFSAfortheUSA,Canada,andMexico,whilstfortherestoftheworld
byIFSSchoolofFinance.

CDCS is a registered

trade

mark

of ifs School

of Finance

from ICC Paris,

registered

with

the EU

20085

CDCS_200

CommunityTradeMarkofficeundernumber000858704.

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TheBadNews
A. We declare our copyright for the following CDCS Exam Exercises and Model Answers (the
Exercises).Pleaseunderstandthatyoumayfaceseriouslegalconsequencesforunauthoriseduse
ofourexercises.
B. SomeofourExercisesaretrickyonesandyouhavetoreadthemcarefullyandthinktwicebefore
you finish your answers. For best learning results (if you don't know the answer at all) or for

testingpurposes(ifyoubelievethatyoushouldknowwhatthecorrectansweris),pleasedonot
clicktheModelAnswerbuttonplacedbeloweachquestionsosoon.Afteryouhaveprovidedyour
answer,whichyouthinkshouldbecorrect,dothinktwicebeforeyouclickfortheModelAnswer.
Otherwise you will exclaim: "Oh shiX! I should have given a different answer if I had read the
questioncorrectlyandhadgiventheissuesalittlemorethoughts".
TheGoodNews
IfyoufailinprovidinggoodanswersfortheExercises,don'tworry!YouwouldstillbeabletopasstheCDCSexam,
becauseourExercisesmaybemoredifficultthanthoseintheCDCS.TheexaminersofCDCSonlywishtocheck
yourknowledgeonUCP600,ISP98andtheotherICCRules.Theydonotwishtogiveyouahardtimelikewedo,
topushyoutothelimit,sothatyoumaygetadistinction!
OurAdvices
In the CDCS examination,
due to fear, anxiety and heavy pressure, you could only perform
yournormalcapacity.Thatmeansyouwouldnotbeabletothinksocoollyandintelligentlyforthebestanswers.

up to 66% (2/3) of

And exercises like this would prepare you well in advance for the most difficult part
(case studies)
examinationthatwouldultimatelyleadyoutoapass,ifnotanenviabledistinction.

of the CDCS

Hereyougo.Andgoodluck!

1.AdocumentarycreditsubjecttoUCP500bearsatitle "IrrevocableDocumentary
Credit"hasaspecialconditionasfollows:
"Thisdocumentarycreditwillbecomeinoperativeuponreceiptofacabletothis
effectfromtheissuingbankafterissuance."
After receipt of such a cable advice, the beneficiary made a presentation
nevertheless. The issuing bank sent a refusal notice by SWIFT pointing out a
discrepancyasfollows:
"Documents presented after expiry of the documentary credit render the
presentationdiscrepant."

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CDCSSAMPLEQUESTION

Istheissuingbankcorrectinitsrefusal?
WhatwouldbethesituationifthesamecreditissubjecttoUCP600?

2.IsthefollowingrefusalnoticeacceptableforaDCsubjecttoUCP600?
"Werefusethedocumentsandhavefoundthefollowingthreediscrepanciesinthe
presenteddocuments:
a.TheportofdischargeintheB/LisnotthesameasthatstatedintheDC.
b.Presentationafterexpiry.
c.Corrections in the certificate of origin are not authenticated by the

CDCSUCP

20085

CDCS_200

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issuer."

3.Whatisan"unconfirmedletterofcredit"underUCP600?

4.Is it possible that a confirmed letter of credit subject to UCP 600 becomes an
unconfirmedletterofcreditwithouttheconsentofthebeneficiary?

5.IsthefollowingrefusalnoticeacceptableforaDCsubjecttoUCP600?
"Wehavefoundthefollowingthreediscrepanciesinthepresenteddocuments:
a.TheportofdischargeintheB/LisnotthesameasthatstatedintheDC.
b.Presentationafterexpiry.
c.Correctionsinthecertificateoforiginarenotauthenticatedbytheissuer.
Meanwhileweareholdingthedocumentsatyourdisposalandrisk."

6.Anapplicantinformedtheissuingbankthatthegoodswererubbishandaskedthe
issuingbanktofreezepaymentunderaDCsubjecttoUCP500/600duetotrade
fraudsalthoughthedocumentspresentedwereallcompliant.Shouldtheissuing
bankfollowtheinstructionsfromtheapplicant?

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7.IsthisrefusalnoticeacceptableforaDCsubjecttoUCP600?
"Werefusetopayyouduetothefollowingthreediscrepancies:
a.ThecommercialinvoicedoesnotmeetthetermsandconditionsoftheDC.
b.ThirdpartyB/Lpresented.
c.UncleanB/Lpresented.

CDCSUCP

Meanwhileweareholdingthedocumentsatyourdisposalandrisk."

20085

CDCS_200

8.ADCsubjecttoUCP500issuedbyBankIwasconfirmedbyBankCexpiringon
1September2002.Therewasnorestrictiononthepresentation.Thebeneficiary
presentedthedocumentstoBankIon29August2002.Isthisthebestpractice?
Whataretherisks?

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IftheDCweresubjecttoUCP600,wouldyouranswerbethesame?

9.A presenting bank had the following messages in its covering letter/schedule
dated24July2007presentedagainstaDCsubjecttoUCP600.
"Wehavefoundthefollowingdiscrepanciesinthedocuments:
a.TheportofdischargeintheB/LisnotthesameasthatstatedintheDC.
b.Presentationafterexpiry.
c.Correctionsinthecertificateoforiginarenotauthenticatedbytheissuer.
Thedocumentsarenowpresentedforcollection.Pleaseapproachtheapplicant
forawaiverandgiveusyourauthoritytonegotiatebySWIFTmessage."
Theissuingbanksentitsrefusalnoticeasfollows:
"Afterconsultingtheapplicant,wedeterminetorefusethedocumentsduetothe
three discrepancies with the underlying reasons as stipulated in your covering
letter/scheduledated24July2007.
Meanwhile,weareholdingthedocumentsatyourdisposalandrisk."

10.
AnominatedpayingbanksentthreerefusalnoticesonthesamedayunderaDC
subjecttoUCP600.Thefirstnoticewassentbyfaxlistingallthediscrepancies
withreasonsthesecondnoticemadebytelephoneadvisingpaymentdishonour

039

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~
240

CDCSUCP

20085

CDCS_200
2016Baidu||||

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