Professional Documents
Culture Documents
CDCS Ques
CDCS Ques
CDCS Ques
1.
Among the kinds of documentary credits subject to UCP600, from which can the beneficiary get two banks
irrevocable undertaking to pay if complying documents are presented.
2.
3.
4.
A.
Irrevocable credit
B.
Transferable credit
C.
Confirmed credit
Bill of lading
B.
C.
Air waybill
Under an irrevocable credit, who must undertake primary liability for payment?
A.
The applicant
B.
C.
With reference to ( ), the expression transshipment not allowed is not a binding term under credit
transaction.
5.
6.
7.
8.
A.
Air transportation
B.
Marine transportation
C.
Insurance policy
B.
C.
B.
C.
B.
C.
Of documentary credit and documentary collection in international trade, ( ) is better for the seller as it means a
banks irrevocable undertaking to pay.
A.
The former
B.
The latter
C.
Neither
9.
Which abbreviation of the following is for uniform customs and practice for documentary credits?
A.
UCP
B.
URC
C.
URDG
10. ( ) means free on board a vessel at the loading port, for which the seller does not supply insurance documents.
A.
FOB
B.
CFR
C.
FCA
11. According to Incoterms 2000, which one of the below trade term is recommended when the credit requires an
air waybill marked freight prepaid to the airport of destination?
A.
CFR
B.
CPT
C.
FCA
12. If an exporter is willing to release the shipping documents directly to the buyer, but wishes to retain some
guarantee of payment should the buyer fail to pay on the due date, which of the following documentary credit best
suits the exporters needs.
A.
Transferable
B.
Standby
C.
Revolving
13. How many working days does an issuing bank have to as certain whether the documents are in compliance
under a credit subject to UCP600?
A.
B.
C.
14. Besides insurance company or its agent, the party who is also qualified to sign insurance document is ( )
A.
Underwriter
B.
Broker
C.
Proxy
15. Under CUP600 what is the minimum insurance amount acceptable when the credit requires the invoice amount
be CIF USD1000?
A.
USD1000
B.
USD1100
C.
USD1200
16. Collections should not contain bills of exchange payable at a future date with instructions that commercial
documents are to be delivered against payment. If collections contain such a bill with such instructions, documents
will be released to the drawee upon ( ) and the presenting bank is not responsible for any consequences
arising out of any delay of payment. (A, 522 Art. 7 c)
A.
B.
C.
A guarantee to pay
17. In the case of documents payable at sight the presenting bank must make presentation for payment ( )
A.
B.
C.
Without delay
18. In the case that the L/C accepts on deck bill of lading, a set of bill of lading with the notation shipped on deck
instead of shipped on board appearing thereon is acceptable.
A.
Right
B.
Wrong
C.
Its arguable
19. ( ) in collection transactions, when documents presented lack bills of exchange, the remitting bank , upon
request of the drawer , may instruct either the collecting bank or the drawee to create the
bills of exchange instead with proper requirements as to their form and wording . (C, Art.8 of 522 )
A.
B.
C.
No conditions needed
20. An L/C stipulated that the expiry date for negotiation was May 1, 2003
A.
In the light of UCP600, the L/C was proper issued. But such a date will be deemed as the expiry date for
presentation of documents
B.
C.
This stipulation can be disregarded. The period of presentation of documents would be 21 days after date of
shipment
21. An L/C requires: invoice/bill of lading in 1 photocopy. What should the beneficiary present?
A.
B.
C.
The L/C is not clear, but its better to present an invoice and a BL each in photocopy
22. The transportation document called for was an air waybill issued to order of the applicant. The air waybill presented
was issued to the applicant instead of to his order.
A.
B.
The air waybill was OK because the L/C did not prohibit the alterative of the consignee
C.
The air waybill was OK because this alternative was allowed by the ISBP
23. Which of the following clauses or notations appearing on the face of the transport document would preclude
it from being accepted?
A.
B.
C.
24. A beneficiary receives an irrevocable documentary credit for which USD22,500.00 may be drawn during each
month of the documentary credits one-year validity. The documentary credit also indicates that reinstatement
is on a cumulative basis. 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 credits validity, the
beneficiary expects to make a final shipment. What is the maximum value available for this final drawing?
A.
USD112,500.00
B.
USD135,000.00
C.
USD157,500.00
25. 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.
1 and 2 only
B.
1 and 4 only
C.
2 and 3 only
26. When an advising bank has accepted a time/usance draft under an advised documentary credit, they
are responsible for effecting payment at maturity when ( )?
A.
B.
C.
27. In accordance with UCP all the following statements relating to commercial invoices under a non-transferable
documentary credit are correct EXCEPT the commercial invoices must ()
A.
B.
C.
Appear to have been issued by the named beneficiary and indicate the description of goods corresponding with
the documentary credit.
Insurance required
Transport document
A.
CFR
Yes
Freight Collect
B.
FOB
No
Freight Paid
C.
FCA
No
Freight Collect
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29. Which party has the most responsibility to examine the terms and conditions of a documentary credit against
the sales agreement?
A.
Applicant
B.
Beneficiary
C.
Issuing bank
30. In the case of a non-cumulative revolving documentary credit available for USD10,000.00 per month
and valid for six months, which of the following statements is correct?
1.
2.
3.
The amount(s) not utilized in one month may be carried over to the next
4.
1 and 3 only
B.
1 and 4 only
C.
PART TWO
1.
An L/C calls for a certificate of origin issued by the ICC, which of the following samples are acceptable?
A.
ICC
B.
C.
CERTIFICATE OF ORIGIN
CERTIFICATE OF ORIGIN
CERTIFICATE OF ORIGIN
XXXXXXXX
XXXXXXXX
Xxxx
Signed by Smith
Signed by
Smith
Director of ICC
2.
Signed by
Smith
Packing list
B.
Drafts
C.
Transport documents
D.
Insurance documents
certificate of origin
3.
L/C: a packing list and a weight list. Are the following packing lists acceptable under the above L/C?
A.
B.
C.
PACKING LIST
and
weight
details
5.
6.
shown
shown
shown
4.
B.
C.
D.
Certificate of origin
B.
Invoice
C.
D.
B.
An invoice produced on beneficiarys letter-headed paper without signature and/or not indicating
original
7.
C.
A signed document transmitted through a fax machine, though absent an original signature
D.
Available by negotiation
B.
C.
Available by acceptance
D.
Available by payment
8.
9.
A.
B/L on board date: Dec 01, 2005, all documents presented on Dec 25, 2005
B.
B/L on board date: Dec 01, 2005, all documents presented on Dec 31, 2005
C.
B/L on board date: Dec 10, 2005, all documents presented on Dec 25, 2005
D.
B/L on board date: Dec 01, 2005, all documents presented on Dec 15, 2005
Which of the following documents are not considered as transport documents under UCP600?
A.
B.
C.
D.
Warehouse notes/receipt
10. For the correction and alternation contained in the following documents, which need be authenticated
?
a.
b.
c.
d.
11. If an actual date of dispatch , though not required by the L/C subject to UCP600, to be shown on the air
waybill, which date below is deemed to be the shipment date?
A.
Flight date: June 12, 2006 shown in the box for carriers use only
B.
C.
D.
A or B
12. Select the statements that correctly express the meaning of the UCP
A.
B.
If the L/C opening application bears any ambiguity in its instruction, the issuing bank should
bear the risk to issue or amend the L/C
C.
If the applicant has accepted the discrepancies , the issuing bank can still refuse the
documents
D.
13. Under an L/C indicating the goods description as frozen beef and requiring invoice, B/L, packing list,
certificate of origin, please determine the documents which are acceptable.
A.
B.
C.
B/L indicating the goods description as goods shipped as per invoice presented
D.
Certificate of origin indicating the goods description as goods shipped as per invoice presented
B.
C.
D.
15. how would the issuing bank exercise control over the goods by air?
A.
B.
C.
insist upon being named as consignee of the goods on the air waybill
D.
16. A documentary credit calls for presentation of an insurance certificate. Which of the following insurance documents
would be acceptable for CIF shipment where the invoice value is USD75,000 ?
A.
B.
C.
D.
17. the letter of credit requires three copies of inspection certificate issued by CCIC. The documents presented as
follows. Which is acceptable?
A.
in 3 originals
B.
in 3 copies
C.
D.
18. an issuing bank has issued a sight documentary credit to a beneficiary authorizing a nominated bank
to pay the beneficiary for all documentary presented in accordance with the documentary credit terms and
conditions. Upon receipt of complying documents drawn under the documentary credit directly from the
beneficiary, the issuing bank should :
A.
B.
C.
return the documents to the beneficiary for presentation to the nominated bank
D.
19. under which of the following situation, the on board notation on B/L should also indicate the actual port of
loading?
A.
when B/L contains the indicating intended vessel or similar qualification in relation to the
vessel
B.
when B/L indicates the port of loading of the credit in the column place of receipt rather than
in the column of port of loading
C.
when B/L contains the indicating intended port of loading or similar qualification
in relating to the port of loading
D.
when B/L indicates that goods have been received in appearance good condition
in case of freely negotiable L/C, the issuing bank should specifically nominate in the
credit a bank as the transferring bank
B.
C.
the transferable L/C could be transferred to more than one second beneficiary if partial
shipment/drawing is not prohibited
D.
refusal of an amendment by one second beneficiary will invalidate the acceptance(s) by the other
second beneficiary (ies).
Part Three
1.
W would charter party B/L be acceptable when the L/C calls for an ocean B/L
2.
R an L/C calls for CFR shipment. The B/L is marked freight paid and free out , would this be
acceptable?
3.
R an L/C calls for FOB shipment and B/L marked freight collect, the B/L is marked freight collect and
free in , would this be acceptable?
4.
W an L/C calls for an ocean B/L and delivery on FOB terms. Would a B/L be acceptable if marked freight payable
as per charter party?
5.
W an L/C calls for an AWB showing actual flight date. When received, the AWB shows this information but in a
box marked for carriers information only. Would this be acceptable?
6.
W under documents required and L/C lists both certificate of origin and GSP form A. only the latter document
is presented by the beneficiary. Would this be acceptable?
7.
R an L/C calls for a certificate regarding the vessel to be issued by the carriers . The B/L has been issued by
Borneo Shipping Pte Ltd as agents for the carrier, Nyk Line. Borneo Shipping has also issued the certificate as
agents for Nyk Line. Would this be acceptable?
8.
W an L/C calls for presentation of a copy telex/fax to the applicants giving certain information. The document
presented is the beneficiarys signed certificate that they have sent such a telex to the applicant (the certificate also
lists the information sent which is accurate and complete). Would this be acceptable?
9.
R an L/C calls for commercial invoice, when presented, the invoice, which has been computer-generated, is not
marked original, it does however bear an original manual signature. Would this be acceptable?
10. R A beneficiary presents documents within the expiry date of the L/C but they contain discrepancies . The
beneficiary collects the offending documents for correction (leaving the rest with the bank) and in due
course presents correct documents, however, in the interim the L/C has expired. Should the
bank now reject the documents for credit expired?
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11. W an L/C (which allows transshipment ) calls for shipment from a UK airport. The AWB shows goods on a flight
from Paris to London then transshipment to another flight from London to the ultimate destination as
specified in the L/C. would this be acceptable?
12. R an L/C issued in favour of a beneficiary in Galle , Srilanka calls for a certificate of origin issued
by the local chamber of commerce, when presented it has been issued by the chamber of commerce in Colombo
, srilanka . Would this be acceptable?
13. R an L/C calls for ocean shipment from western Europe to south korea. In full utilization of the L/C, the
documents presented include 3 sets of ocean B/L all showing the same vessel/voyage but 3 different ports of
loading (all within western europe) and 3 different ports of discharge (all in south korea). Does this constitute
evidence of partial shipment?
14. R an L/C subject to UCP600 specified that the L/C number must be quoted in all documents presented. The
commercial invoice did not quote the L/C no. and issuing bank refused payment. Is the issuing bank correct in its
refusal?
15. W is the following invoice acceptable or not?
Description of the goods in an L/C is: 1000 pieces of towels
L/C amount: USD1000
Invoice presented shows: Towels: 1000 pieces
Total value: USD 1000
Samples of cap: 20 free of charge
Part Four
1.
F Having transferred the full shipment/expiry dates and presentation period and made the L/C available in the
transferees country, the first beneficiary cannot now substitute documents after the L/C has expired or late
presentation occurred.
2.
3.
F unless otherwise stated in the L/C, transport documents must show the L/C beneficiary as shipper/ consignor
.
4.
F an L/C calls for invoices in triplicate. When presented, they are identical computer-generated documents none of
which is marked original. However, this is acceptable as the L/C only stated triplicate, not original and two copies.
5.
6.
F according to article 13 of UCP600, if the credit stipulates that a claiming bank must supply a certificate of
compliance with the terms and conditions of the credit when making reimbursement claim, the reimbursing bank can
disregard such a stipulation .
7.
T a bill of lading with pre-printed wording to show that the goods have been loaded on board can simultaneously
bear a dated on-board notation . In such a case the date of the on-board notation will be deemed to be
the date of shipment whether it is earlier or later than the issuance date or the two are the same.
8.
F if the bill of lading indicates a place of receipt or taking in charge different from the port of loading, the on board
notation must also include the port of loading stipulated in the credit and the name of the vessel on which the
goods have been loaded, even if they have been loaded on the vessel named in the bill of lading. This provision
does not apply when loading on board the vessel is indicated by pre-printed wording on the bill of lading.
9.
F terms such as first class, well-known, independent, local, official, qualified, competent
10
and the like are ambiguous words in light of the UCP. If such terms are incorporated in the
credit, banks will accept the relative document (s) as presented, provided that it appears on its face to be in
compliance with the other terms and conditions of the credit.
"""first class""""well known""" "qualified""""independent""""official""
" competent""""local"
10. F as for a charter party bill of lading, banks will not examine the charter party contract to which the bill of lading
is subject. But if the credit requires beneficiary(ies) to present the contract along with other documents banks have
to determine whether it is in compliance with the terms and conditions of the credit.
11. F under a freely negotiable and transferable credit any bank except the issuing bank is a nominated bank. Now that
the relative article of UCP600 sets a rule that only the nominated bank has the right to make the transfer , thereof
any bank exclusive of the issuing bank can transfer such a credit unless otherwise stipulated.
12. F without the agreement or authorization of the applicant, an issuing bank must issue a credit strictly as what
the application says and cannot make any alteration even if to supplement or develop the terms in a manner
necessary or desirable to permit the use of the credit.
13. T if a signature and/or endorsement is required to be on a document consisting of more than one page, the
signature is normally placed on the first or last page of the document, but unless the credit or the document itself
indicates where a signature or endorsement is to appear, the signature or endorsement may appear anywhere on
the document
14. F if an L/C requires invoice or one invoice it will be understood to be a requirement for an original invoice. If
an L/C requires invoice in 1 copy, it will be understood to be a requirement for a copy of an invoice.
15. F an L/C called for one copy of insurance certificate, the original to be sent to the applicant by the beneficiary
outside the L/C. the beneficiary presented one original in place of one copy. The original indicated on its face in
column: NUMBER OF ORIGINAL: ONE. The presentation is valid.
16. F description of goods: 100 tables, unit price: USD100 FOB shenzhen, total value: USD10000 partial shipment
allowed
description of goods in presented invoice:
100 tables, unit price: USD 100 FOB ShenZhen
10 tables first shipment
total value: USD1000
the description of goods in presented invoice is not acceptable.
17. T the signature of the below bill of lading is compliance L/C requirement: ocean bill of lading
BILL OF LADING
BL NO,XXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXX
document has been prepared. The document without the words or making copy for shipper creates a
discrepancy.
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