* CDCS means "Certified Documentary Credit Specialist", a certification from ICC Paris, administered by IFSA for the USA, Canada, and Mexico, whilst for the rest of the world by IFS School of Finance. * CDCS is a registered trade mark of ifs School of Finance registered with the EU Community Trade Mark office under number 000858704. The Bad News
A. We declare our copyright for the following CDCS Exam Exercises and Model Answers (the Exercises). Please understand that you may face serious legal consequences for unauthorised use of our exercises. B. Some of our Exercises are tricky ones and you have to read them carefully and think twice before you finish your answers. For best learning results (if you don't know the answer at all) or for testing purposes (if you believe that you should know what the correct answer is), please do not click the Model Answer button placed below each question so soon. After you have provided your answer, which you think should be correct, do think twice before you click for the Model Answer. Otherwise you will exclaim: "Oh shiX! I should have given a different answer if I had read the question correctly and had given the issues a little more thoughts". The Good News
If you fail in providing good answers for the Exercises, don't worry! You would still be able to pass the CDCS exam, because our Exercises may be more difficult than those in the CDCS. The examiners of CDCS only wish to check your knowledge on UCP 600, ISP98 and the other ICC Rules. They do not wish to give you a hard time like we do, to push you to the limit, so that you may get a distinction! Our Advices
In the CDCS examination, due to fear, anxiety and heavy pressure, you could only perform up to 66% (2/3) of your normal capacity. That means you would not be able to think so coolly and intelligently for the best answers. And exercises like this would prepare you well in advance for the most difficult part (case studies) of the CDCS examination that would ultimately lead you to a pass, if not an enviable distinction. Here you go. And good luck!
Note: | Question 11 was edited on 19 Jun 2009. |
1. A documentary credit subject to UCP 500 bears a title "Irrevocable Documentary Credit" has a special condition as follows: "This documentary credit will become inoperative upon receipt of a cable to this effect from the issuing bank after issuance." 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 discrepancy as follows: "Documents presented after expiry of the documentary credit render the presentation discrepant." Is the issuing bank correct in its refusal?
What would be the situation if the same credit is subject to UCP 600?
2. Is the following refusal notice acceptable for a DC subject to UCP 600? "We refuse the documents and have found the following three discrepancies in the presented documents: 1. The port of discharge in the B/L is not the same as that stated in the DC. 2. Presentation after expiry.
3. Corrections in the certificate of origin are not authenticated by the issuer."
3. What is an "unconfirmed letter of credit" under UCP 600?
4. Is it possible that a confirmed letter of credit subject to UCP 600 becomes an unconfirmed letter of credit without the consent of the beneficiary?
5. Is the following refusal notice acceptable for a DC subject to UCP 600? "We have found the following three discrepancies in the presented documents: 4. The port of discharge in the B/L is not the same as that stated in the DC. 5. Presentation after expiry.
6. Corrections in the certificate of origin are not authenticated by the issuer. Meanwhile we are holding the documents at your disposal and risk."
6. An applicant informed the issuing bank that the goods were...