Exam on Module 4 Total Marks : 20

Coverage: Original documents and copies, Invoices

(Please put answer in your separate sheet)

1. A letter of credit is issued for about USD10,000.00 for approximate 500 MT wheat
@USD20.00/PMT. If partial shipment is prohibited, which of the following is acceptable?
A. 500 MT @ USD20.00/PMT for USD9000.00
B. 550 MT @USD20.00/PMT for USD10000.00
C. 525 MT @USD20.00/PMT for USD10500.00
D. 475 MT @USD20.00/PMT for USD9000.00
2. A commercial documentary credit under UCP 600 is issued for USD100, 000.00
Under the following shipment schedule:.
- End of January: 50 MT
- With 2nd half of February: 50 MT
- Within March: 100 MT
What is the maximum quantity can the beneficiary ship and draw by the end of
February?
A. 210 MT
B. 100 MT
C. 105 MT
D. 95 MT

03) A credit calls for 2 copies of ‘’Photocopy of signed invoice’’, then which of the following presentation
is not acceptable?
A) 02 Original signed Invoice
B) 01 signed copy invoice and 01 original invoice
C) 01 unsigned copy invoice and 01 Photocopy of signed invoice
D) All are accepted

4. In a cumulative revolving documentary credit, about USD20,000.00 may be drawn in every

months for a period of 5 months. If the beneficiary did not draw any amount till 4 months, what the
maximum amount he will be able to draw in the fifth months?
A. USD20000.00
B. USD110000.00
C. USD100000.00
D. USD0.00
5. A credit states an amount of about USD 20,000.00. The maximum drawing allowed under the credit is:
A. USD 21,500.00
B. USD 20,000.00
C. USD 22,000.00
D. USD 22,500.00

6. A credit is issued under UCP600 for GBP100,000.00 to import 1,000.00 MT Wheat. Which of the
following can be shipped if partial shipment is not allowed?
1. 950 MT for GBP100,000.00
2. 1100 MT for GBP100,000.00
3. 1,050.00 MT for GBP100,000.00
4. 950.00 MT for GBP95,000.00
A. 1 only
B. 2 and 4
C. 1 and 3
D. 1, 3 and 4
7. If a credit requires one copy of invoice, which of the following ways a presentation is
complying?
A. Carbon copy of invoice
B. Photocopy of invoice
C. Signed Invoice
D. All of the above

8. If a credit requires invoice in one Copy, which of the following ways a presentation is
complying?
i. An invoice presented in original stationery of the beneficiary without sign of the beneficiary
ii. An invoice presented in original stationery of the beneficiary with sign of the beneficiary
iii. A copy of original invoice bearing “original stamp” on the invoice
iv. A copy of “ invoice issued in company’s letter head with stamp original”
A. i and ii
B. i, ii and iii
C. i and iii
D. All of the above

9. A credit requires presentation of a commercial invoice. The requirement can be satisfied by

presentation of invoice “titled”:
A. A Tax invoice
B. An Invoice
C. A Customs invoice
D. A Provisional invoice

10. Credit requires presentation of 3 original inspection certificates. Which of the following “mark” The
presentation inspection certificate will not qualify as original
A. Original Duplicate Triplicate
B. 1st Original, 2nd Original, “3rd original
C. Without any marking on document but bear image signature on each 3 document
D. All three documents bear “original stamp” but presented through tele-fax
 Simulation: 1
Swift Input: FIN 700 Issue of a Documentary Credit
Sender : XYZHKKLXXX
XYZ BANK LIMITED
(TRADE SERVICES)
HONG KONG
Receiver : SMBCMYKKXXX
SUMITOMO MITSUI BANKING CORPORATION

MALAYSIA
Message Text
F20: Documentary Credit Number
IM123897CA
F31C: Date of Issue
101018
F40E: Applicable Rules
UCP LATEST VERSION
F31D: Date and Place of Expiry
101230
IN MALAYSIA
F50: Applicant
GMS COMPOSITE KNITTING IND.LTD.
HONG KONG
F59: Beneficiary - Name & Address
GOLD STAR LTD.,MALAYSIA
P.O BOX NO. 242 INDUSTRIAL CITY 11678
F32B: Currency Code, Amount
USD [ US DOLLAR ]
50,000,00 #50,000,00#
F41D: Available With...By... - Name&Addr
ANY BANK IN MALAYSIA
BY NEGOTIATION
F43P: Partial Shipment
NOT PERMITTED
F44C: Latest Date of
Shipment 101215
F45A: Descriptn of Goods &/or Services
10,000 MT BLACK BRAND IRON ORE IN BULK
TRADE TERMS: CFR,HONG KONG

F46A: Documents Required

1 SIGNED.COMMERCIAL INVOICE- 1COPY
2.BENEFICIARY CERTIFICATE: GOODS SHIPPED
ACCORDING TO PROFORMA INVOICE NO. 1243
DATED 09.09.2010
3.BENEFICIARY CERTIFICATE: ONE SET OF COPY
DOCUMENTS SEND DIRECTLY TO THE
APPLICANT IMMEDIATELY AFTER SHIPMENT

F48: Period for Presentation

15 DAYS FROM THE DATE OF SHIPMENT BUT
WITHIN THE VALIDITY OF THIS CREDIT
 Remittance Schedule
Mail
To,
XYZ Bank Ltd.
09-FDBP-10-401
Hong Kong

Documents have been "presented for payment" and the drawing amount has duly been endorsed
on the reverse side of the original credit. Presentation is subject to UCPDC (2007 Revision),
ICC Publication No. 600.

Applicant Name & Add. Beneficiary Name & Add. Documentary Credit No: IM123897CA
GMS COMPOSITE KNITTING SILVER STAR LTD., MALAYSIA
IND.LTD. Hong Kong P.O BOX NO. 242 INDUSTRIAL Date: 18-10-2010
CITY 11678
Tenor: Sight

Claimed Value: USD 50,000.00

D O C U M E N T S: (Please acknowledge the receipt of the enclosure)

Air way
Certificate
Bill of Bill / Bill
Documents Invoices of Others
Exchange of
origin
Lading
1 Bnf cert: 2

SPECIALINSTRUCTION:
The presentation was made within the time limits extended in accordance with
sub-article 29 (a).

Payment Instruction:
Please remit the proceeds to SHAMBA BANK, New York, USA FOR
ONWARD CREDIT TO SUMITOMO MITSUI BANKING
CORPORATION, MALAYSIA.
 SILVER STAR LTD., MALAY SIA COP Y
Invoice N o. 1568
Applicant : Dated 02.01.2011
GMS COMPOSITE KNITT ING IND .LTD.
Hong Kong COMM ERCIAL INVOICE

PAYM ENT TER MS

AT SIGHT UNDER DC NO . IM123897 CA ISSUED BY XYZ BAN K LTD. HON K KONG

DES CRIPTION OF GOODS AMO UNT

9,500 KGS MT BLACK BRAND IRON ORE SGD: 50,000.00

5 K GS OF BLACK BRAND IRON ORE GRADE BAS FREE OF CHRGES
(IN BULK) [CFR, HONG KONG,
INCOTERMS®2010]
IT HAS BEEN ISSUED FOR TAX PURPOSE

MAN AGING Direc tor

SILVER STAR LIMI TED
(FOR MALLY KNO W AS GOLD STAR LTD.)
P.O BO X NO. 242 INDUSTRI AL CITY 11 678

SILVER STAR LTD., MALAY SIA

Beneficiary Certificates
Dated 18.11.2010
Applicant :
GMS COMPOSITE KNITT ING IND .LTD.
Hong Kong
THIS IS TO CERTIFY T HAT:
1. GOODS SHIPPED AS PER PROFORM INVICE NO. 1243 DATE D 09.09.2010
2. ONE SET OF COPY DO CUMENT DIRECTLY SENT TO THE APPLICANT IMMEDIA TELY
AFTER SHIPM ENT

MAN AGING Direc tor

SILVER STAR LIMI TED
(FOR MALLY KNO W AS GOLD START LTD.)
Discrepancy List: Identify FIVE discrepancies out of ten stipulated below:

01 DESCRIPTION OF THE GOODS IN INVOICE IS NOT CORRESPONDENT WITH THE CREDIT

02 ORIGINAL INVOICE IS NOT PRESENTED

03 COMMERCIAL INVOICE MUST NOT INDICATE THAT IT ISSUED FOR TAXC PURPOSE

04 LATE PRESENTATION

05 INVOICE IS NOT ISSUED BY THE BENEFICIARY

06 PARTIAL SHIPMENT EFFECTED

07 AT LEAST ONE ORIGINAL OF EACH BENEFICIARY CERTIFICATE IS NOT PRESENTED

08 SOURCE TERM IS CONFLICTED WITH THE CREDIT

09 INVOICE SHOWN ADDITIONAL QUANTITY AS FREE OF CHARGES

INVOICE IS NOT ISSUES IN SAME CURRENCY AS STATED IN THE

10 CREDIT
 Simulation: 2
Swift Input: FIN 700 Issue of a Documentary Credit
Sender : XYZHKKLXXX
XYZ BANK LIMITED
(TRADE SERVICES)
HONG KONG
Receiver : SMBCMYKKXXX
SUMITOMO MITSUI BANKING CORPORATION

MALAYSIA
Message Text
F20: Documentary Credit Number
IM123897CA
F31C: Date of Issue
101018
F40E: Applicable Rules
UCP LATEST VERSION
F31D: Date and Place of Expiry
101230
IN MALAYSIA
F50: Applicant
GMS COMPOSITE KNITTING IND.LTD.
HONG KONG
F59: Beneficiary - Name & Address
GOLD STAR LTD.,MALAYSIA
P.O BOX NO. 242 INDUSTRIAL CITY 11678
F32B: Currency Code, Amount
USD [ US DOLLAR ]
50,000,00 #50,000,00#
F41D: Available With...By... - Name&Addr
ANY BANK IN MALAYSIA
BY NEGOTIATION
F44C: Latest Date of
Shipment 101215
F45A: Descriptn of Goods &/or Services
ONE UNIT SINGLE CORE COPPER CONDUCTOR PVC INSULATED CABLE 450/750
VOLTS TO BS 6004/1975 TRADE TERMS: CFR,HONG KONG INCOTERMS®
2010 @USD50,000.00/PER
UNIT F46A: Documents Required
1 COMMERCIAL INVOICE- 1COPY

F48: Period for Presentation

15 DAYS FROM THE DATE OF SHIPMENT BUT
WITHIN THE VALIDITY OF THIS CREDIT
 Remittance Schedule
Mail
To,
XYZ Bank Ltd.
09-FDBP-10-401
Hong Kong

Documents have been "presented for payment" and the drawing amount has duly been endorsed
on the reverse side of the original credit. Presentation is subject to UCPDC (2007 Revision),
ICC Publication No. 600.

Applicant Name & Add. Beneficiary Name & Add. Documentary Credit No: IM123897CA
GMS COMPOSITE KNITTING GOLD STAR LTD., MALAYSIA
IND.LTD. Hong Kong P.O BOX NO. 242 INDUSTRIAL Date: 18-10-2010
CITY 11678
Tenor: Sight

NEGOTIATED AND CLAIMED

USD 50,000.00
Value:

D O C U M E N T S: (Please acknowledge the receipt of the enclosure)

Air way
Certificate
Bill of Bill / Bill
Documents Invoices of Others
Exchange of
origin
Lading
1 Bnf cert: 2

SPECIALINSTRUCTION:
The presentation was made within the time limits extended in accordance with
sub-article 29 (a).

Payment Instruction:
Please remit the proceeds to SHAMBA BANK, New York, USA FOR
ONWARD CREDIT TO SUMITOMO MITSUI BANKING
CORPORATION, MALAYSIA.
 GOLD STAR LTD., MALAYSIA

Invoice N o. 1568
Applicant : CUSTOM INVOICE Dated :
GMS COMPOSITE KNITT ING IND .LTD.
Hong Kong
PAYM ENT TER MS

AT SIGHT U NDER DC NO . IM123897 CA ISSUED BY XYZ BAN K LTD. HON K KONG

DESCRIPTION OF GOODS AMOUNT

SINGLE C ORE COPPE R CONDUC TOR PVC IN SULATED CA BLE

450/700 VOLTS TO B S 6004/197 5 WITH ONE SET SPARE PARTS
USD: 70,000 .00

AS FREE OF CHARGES TRADE TERMS: CIF CFR,HONG KONG

Signa ture
MANAGING Dir ector
G OLD START LTD.
P.O BO X NO. 242 INDUSTRI AL CITY 11 678

Discrepancy List: Identify FIVE discrepancies out of ten stipulated below:

01 COMMERCIAL INVOICE IS NOT SUITABLY TITLED I.E. CUSTOM INVOICE

02 CORRECTION ON COM MERCIAL INVOICE IS NOT AITHENTHIC ATED

03 DESCRIPTION OF THE GOODS IN INVOICE IS NOT CORRESPONDENT WIT H THAT OF CR EDIT

04 INVOICE EXCEEDED PE RMIITED CREDIT AMOUNT

05 INVOICE I S NOT DATED

06 UNIT PRICE IS NOT STIPULATED IN THE COMMERCIAL INVOICE

07 INVOICE SHOWN SPARS WHICH IS NOT CALLED FOR THE CR EDIT

08 INVOICE I S NOT SIGNE D EVEN THOU GH THERE IS A SPACE/FIE LD FOR SIGN ATURE

9 SOURE TERM IS NOT M ENTIONED IN INVOICE

10 CREDIT OVERDRAWN