Orboof of Xrabe

Certified Documentary Credit Specialists (CDCS)

Mock 06 Test

Length of examination 3 Hours

This mock test paper is a full sample of the type of questions you will encounter in the
actual test paper. This test represents the actual test and should take no longer than 3
hours to complete.

Instructions to Candidates

1. Open this question paper, in-basket and simulation booklets when instructed to
do so.
2. Answer all questions.
3. Use the examination answer sheets provided for your answers. Please do not
note your answers in this booklet, as they will not be recorded.
4. Read the instructions on both sides of the answer sheet carefully.
5. Before you leave the examination room you must hand in all the examination
materials including the answer sheet, the question paper and the in-basket /
simulation booklets and have them checked by the invigilator. Failure to do so
will invalidate your entry.

Information for Candidates

1. This paper consists of two sections: Section A and Section B:

Section A consists of 60 multiple choice questions worth one mark each.
Section B consists of:
10 stand alone analysis questions worth one mark each;
3 in-basket exercises, 5 questions per in-basket, each question worth one
mark; and
3 simulation exercises worth a maximum of five marks each.
Accompanying this question paper is a booklet of supporting in-basket
documentation, referenced to each corresponding set of in-basket questions and
a booklet of three simulation exercises.
2. In the questions in both Section A and Section B you should assume that, unless
otherwise stated, there are no Bank Holidays, and Saturdays and Sundays are
not banking days and all transactions take place in the same year.
3. Unless otherwise stated, all credits referred to in this paper are irrevocable. UCP
600 applies throughout.
4. Basic silent desktop calculators with + - x / % and memory functions are allowed.
Scientific, programmable or calculators with any additional functions are not
allowed.

Page 1 of 33
Queries 01712 175 979
 MOCK 6 - SECTION - A
Orboot of lir rab

1. In an unconfirmed credit, which of the following is NOT a risk to beneficiary

A
\
A. Failure to comply with credit conditions.
B. Insolvency of issuing bank.
C. Loss of goods in transit.
D. All of the above

2. A Credit stipulates beneficiary to send one set of non-negotiable documents within 2 days of
Shipment Date. The Shipment Date is 10 December 20XX. Which of the following dates are
ACCEPTABLE?

i. 08 Dec 20XX
ii. 13 Dec 20XX
iii. 12 Dec 20XX
iv. 11 Dec 20XX

A) i Only
B) iii Only
C) ii and iv Only
D) iii and iv Only

3. The Consignor/Exporter on the Certificate of Origin

A) Should be consistent with Shipper on the Transport Document

B) Should be the same as the Beneficiary of the Credit
C) Can be any Third Party
D) Can either be Shipper on the Transport Document or the Beneficiary

4. Which of the following statement is FALSE with respect to URR 725?

A) Unless otherwise it has issued a reimbursement undertaking a reimbursing bank is not

obligated to honor a reimbursement claim.
B) When a bank is not prepared to act in accordance with the reimbursement authorization it
should advise the issuing bank without delay.
C) When a bank is not prepared to act in accordance with the reimbursement authorization it
should inform the advising bank of the documentary credit without delay.
D) Issuing bank should not require sight drafts to be drawn on the reimbursing bank.

5. Which of the following is TRUE regarding CFR? c.,

A) Transfer of Risks occurs at the Port of Loading
B) Transfer of Risks occurs at the Port of Discharge
C) Seller pays unloading costs
D) Used for all modes of transport

6. A standby subject to ISP98 Is issued with the following clause Beneficiary can claim under the
standby by presenting only a statement of default certifying that applicant has not paid within 60
days after shipment date as per contract no.123.

Beneficiary presents a drawing with the following documents:

> Beneficiary's statement of default which complies with the standby
> Copy of unpaid invoice showing contract no.234

As an issuer of the standby, which of the following is your BEST course of action?

A) Refuse the presentation as contract no. is different from the standby

B) Pay the beneficiary
C) Ask beneficiary to change contract no. in the invoice
D) Obtain applicant's approval for payment
Page 2 of 33
Queries 01712 175 979
s

Orboot of Crabe

7. Under an eUCP credit the nominated bank received electronic records on 30 March 20)0(
(Monday). The bank processed the records on 03 April and found that the records are corrupt and
hence the bank requested the beneficiary to represent the records. The electronic records were
represented on 06 April 20XX. What is the last date within which the bank must send a notice of
refusal, if documents are found discrepant (Saturdays & Sundays are bank holidays)
A) 06 April
B) 07 April
C) 13 April
D) 29 April

8. A beneficiary gave notice that the presentation is complete on 03 April 20XX (Friday), under a
eUCP credit which did not stipulate a format in which electronic records must be presented. The
bank was unable to process the records in the format presented. They eventually were able to
process the records on 08 April. What is the last date within which the bank must send a notice of
refusal, if documents are found discrepant (Saturdays & Sundays are bank holidays)
A) 08 April
B) 15 April
C) 10 April
D) 13 April

9. An Irrevocable Documentary Credit was issued for USD 20,000, which will revolve on a
monthly basis for 6 months. What is the total liability for the Issuing Bank under this Credit, if it
revolves on a cumulative basis?

A) USD 20,000
B) USD 20,000 for each month
C) USD 120,000
D) Indeterminable

10. Which of the following statements about bills of exchange are correct
1. they are used as instruments to extend long term credit
2. they are used as a security for payment
3. they are used as instruments to extend short term credit
4. they are used only in international trade

A.1 &2
B. 2 & 3
C.3 & 4
D.1 &4

11. Flight Airways has entered into a contract with your client Swift Aircraft Manufacturing Co., to
lease an airplane for a period of 10 years. The lease payment will be due every six months and
will be paid directly by Flight Airways through their bankers. Your client seeks your advice on
how to protect them from the credit risk of Flight Airways. You should advice your client to obtain
a in their favor.

a) Revolving Letter of Credit

b) Installment Letter of Credit
c) Green clause Letter of Credit
d) Evergreen Standby Letter of Credit

Page 3 of 33
Queries 01712 175 979
 • MI IN 1 I= 1• •

i§tboot of Trabe
12. Which of the following statements BEST describes the purpose of a packing list?
1. To indicate to the applicant & carrier the gross and net weight of the goods
2. To indicate to the clearing agent the description of goods in each package
3. To enable customs authorities to conduct spot checks on the content of packages
4. To satisfy health authorities in the country of import

A. 1 & 2
B. 2 & 3
C. 1 &4
D. 1 & 3

13. You have received credit compliant documents from a beneficiary under an unconfirmed sight
documentary credit and as a nominated bank you wish to negotiate them. Which of the following
statements describe best your actions?
1. Make immediate payment to the beneficiary
2. Make payment to the beneficiary upon receipt of funds from the issuing bank
3. Send documents to the issuing bank
4. Seek permission from issuing bank to negotiate the documents

A. D only
B. B&C
C. C Only
D. A&C

14. If an L/C calls for insurance to cover "Common Risks",

A) Insurance must cover all risks
B) Insurance must cover common risks in the trade
C) Insurance must cover risks at least as per ICC (c)
D) Insurance document can show coverage of any risks

16. What purpose does an inspection certificate serve?

A) Ensures goods are of a certain quality and insured
B) Ensures there is no over invoicing and goods are adequately insured
C) Ensures quality of goods is as per globally acceptable standards
D) Ensure that the goods are of certain quality and that there is no over invoicing

16. Which of the following transport document serves all the three functions listed below
=> Receipt for goods
g> Contract of Carriage
g> Documents of title to goods

A) Air Waybill
B) Sea Waybill
C) Truck Receipt
D) Marine Bill of Lading

17. Your customer presents documents under an L/C which states the shipment to be effected in
first half of February. Which of the following statement is TRUE?
A) Marine B/L showing dispatch date as 141h Feb
B) A railway bill bearing a reception stamp dated 15th Feb
C) A airway bill evidencing flight date as 16th Feb
D) None of the above

Page 4 of 33
Queries 01712 175 979
 Orboot of Tube
18. Which of the following statement regarding Forfaiting is TRUE?
1. It is an arrangement between lender and seller by means of which the seller receives
payment for export receivables from the lender without recourse
2. It is a device used for long term financing
3. Rights to payment under letters of credit are accepted as security
4. It is a guarantee given by the lender to pay the seller in case the buyer defaults

A. 1& 2
B. 1& 3
C. 1, 2 & 3
D. 2, 3 &4

19. Bank I receives documents on 11th March 20XX under an L/C it has issued. Bank finds the
documents to be discrepant. Which of the following notice of refusal sent by Bank I is valid?[11th
March is Tuesday, Bank I does not work on Saturdays and Sundays, there are no bank holidays
in March]
A) A message sent on 14 March by tele-transmission stating "We received your documents
presented under our L/C. However we refuse to pay as the documents are discrepant.
C) Meanwhile we are holding documents at your disposal"
B) A message sent on 18th March by tele-transmission stating "We refuse your presentation
as the documents contain the following discrepancies — Late Shipment, partial shipment.
We are returning the documents to you by courier"
C) A message sent on 13th March through tele-transmission stating "We refuse payment as
the documents contain the discrepancy late shipment. We will effect payment when
documents are accepted by the applicant"
D) A message sent on 19th March through tele-transmission stating 'We
refuse payment as
the documents contain the discrepancy late shipment. We are holding documents at your
risk and disposal"

20. As per eUCP, the period for the examination of documents commences from
A) The day of receipt of data by the bank
B) The day on which the beneficiary started transmission of data to the nominated bank
C) The day the beneficiary gives notice that the presentation is complete
D) The day following the day the beneficiary gives a notice that the presentation is complete.

21. In a freely negotiable L/C, which of the following statements is

TRUE?
1. Documents must be presented to the advising bank only
2. Documents can be presented to any bank and it is obliged to negotiate
3. Documents can be presented to any bank and it is not obliged to negotiate
4. Documents can be presented directly to the issuing bank

A. 1 Only
B. 1 & 4
C. 2 & 4
D. 3 & 4

22. You receive an L/C with the following condition

• Beneficiary — ABC Co, Taiwan
• Manufacturer — XYZ Co, China
• Certificate of origin issued by manufacturer
• Export License issued by well known authority in the exporting country
Beneficiary presents the following documents
1. Certificate of origin issued by chamber of commerce mentioning the name of the
manufacturer
2. Export License issued by XYZ Co in China

A) Both documents are not acceptable

B) Both documents are acceptable
C) 1 is acceptable but 2 is not
D) 2 is acceptable but 1 is not
Page 50! 33

Queries 01712 175 979

 ettboof of Trabe
23. Difference between a bill of exchange and a promissory note is that
A) Bill of exchange is drawn by the seller, while promissory note is drawn by the buyer
B) Bill of exchange is conditional upon fulfillment of the commercial contract, while
promissory note is not
C) Promissory note is conditional upon fulfillment of the commercial contract, while bill of
exchange is not
D) Bill of exchange is a financial document whereas a promissory note is a commercial
document

24. Which of the following parties is NOT AUTHORISED to sign a multimodal transport document
in it's own capacity?
A) Carrier
B) Agent of the Master
C) Multimodal Transport Operator
D) None of the above

25. Applicant should request to open the letter of credit

1. as detailed in the agreement between the applicant and beneficiary
2. no later than the latest shipment date specified in the credit
3. no later than the expiry date specified in the contract
4. as detailed in the agreement between the applicant and issuing bank

A. 1 & 2
B. 2 & 3
C. 1, 2 &3
D.2, 3 & 4

26. A letter of indemnity is commonly seen in which of the following trades?

A) Normal commercial transactions
B) Manufactured goods
C) Commodity
D) Capital machinery

27. When a bank prefers to reduce its risk in a documentary credit it may
A) Request another bank to issue reimbursement undertaking
B) Request another bank to add confirmation
C) Issue an standby
D) Enter into a syndication arrangement

28. Which of the following statements are TRUE while handling pending dishonored documents
1. The documents are held at the disposal of the applicant
2. The documents securely stored
3. The presenter should be kept informed at regular intervals
4. The presenter does not have the right to be informed at regular intervals

A.1 &2
B. 1 & 3
C. 2 & 3
D.2&4

29. Discrepant documents under an L/C are received by the nominated bank. The nominated
bank requests the issuing bank for authority to pay. Which of the following statements are TRUE?
A) Issuing Bank need not refer the discrepancies to the applicant, if the discrepancies are
acceptable to it
B) Issuing Bank should refer the discrepancies to the applicant for their. approval
C) Issuing Bank must reply to the nominated bank within 5 banking days following the date
of receipt of such request
D) Issuing bank need not check documents if it authorizes the nominated bank to pay

Page 6 of 33
Queries 01712 175 979
\

brpoot of Trabe
30. Which of the following statements are TRUE for an evergreen letter of credit?
1. They should be issued only for applicants of undoubted financial and dependable
undertaking
2. Issued only for Beneficiaries of undoubted financial and dependable undertaking
3. Liability remains outstanding for a long period
4. They are always standby letter of credits

A.1 &2
B. 1 &3
C.2 & 4
D. 1,2 & 3

31. A Confirming bank should

1.Indicate to the beneficiary the manner in which the credit is available
2. Indicate to the beneficiary the place where the documents must be presented
3. Communicate to the beneficiary that it reserves its position regarding confirming
amendments in terms of Article 10(b) of UCP 600
4. Process discrepant documents in terms of Article 16 and related Articles of UCP 600

A. 3 & 4
B. 2,3 & 4
C. 4 only
D. 1, 3 & 4

32. The advising bank which does not confirm the UC should expressly indicate in its letter
enclosing the credit that
1. It undertakes no liability and gives no undertaking in respect of the Credit
2. When documents are presented it will merely pass them on to the issuing bank if so
required by the Beneficiary
3. That the LIC has not been authenticated, in case it is unable to establish the authenticity of
the L/C
4. It has confirmed the authenticity of the credit

A. 1, 2 & 3
B. 2, 3 &4
C. 1, 3 &4
D. 1, 2 & 4

33. Documents presented under an L/C show the following details

• Onboard date — 16th January
• B/L issue date — 18th January
• L/C requires a presentation of insurance certificate covering all risks

Which of the following presentations is NOT ACCEPTABLE?

1. An insurance certificate issued on 18th January covering risks as per ICC (A)
2. An insurance policy issued on 16th January covering risks as per ICC (B)
3. An insurance policy issued on 19th January showing cover is effective from
15th January covering all risks excluding war risks
4. An insurance policy issued on 15th January evidencing it expires on 31
st Dec
A. 1, 2 & 3
B. 2, 3 & 4
C. 1, 3 & 4
D. 1, 2 & 4

r. Page 7 of 33
Queries 01712 175 979
 anboot of Trabe

34. When a importer requests for an L/C to be issued, there are some precautions which may be
taken to ensure that the goods received are in accordance with sales contract specifications.
These are
A) Attach the sales contract as an integral part of the LJC
B) Request for a third party inspection agency to inspect the goods and issue a certificate
C) Ensure that the incoterm in the L/C is the same as in the sales contract
D) Request for certificate of quality issued by beneficiary

35. An issuing bank finds the discrepancy "BL not signed as per UCP" in a presentation subject to
UCP 600 and seeks a waiver from the applicant. The applicant waives the discrepancy. However
you notice that the applicant does not have sufficient amount in his account to settle the drawing.
What is the course of action for the issuing bank?
A) Issuing bank is obliged to pay since the applicant has waived the discrepancies
B) Issuing bank should refuse to pay the documents
C) Issuing bank is obliged to pay if the nominated bank has negotiated the documents and
paid the beneficiary
D) Issuing bank should pay only up to the amount of funds available in applicant's account

36. In which of circumstances listed below might an issuing bank refuse to take up documents
presented under a L/C subject to UCP 600?
1. If the documents do not conform to the terms and conditions of the L/C
2. If a court injunction has been obtained and notice served on the bank to stop payment
3. If the applicant has been officially declared bankrupt
4. If documents has not been presented by the nominated bank

A. 1&2
B. 2&3
C. 1, 2 & 3
D. 1, 2 & 4

37. Which is of the following is NOT a risk encountered by the applicant who gets an L/C issued?
A) Risk that payment will be made for worthless mercha
B) Risk that the goods are short shipped
C) Risk that the issuing bank will become bankrupt
D) Risk that documents presented will be discrepant

38. Your Bank acts as a reimbursing bank which has issued a reimbursement undertaking in a
LC. Which of the following statements are TRUE?
A) If there is a delay in payment by your bank, Issuing bank is not responsible for delay
B) Issuing bank is not required to pay the confirming bank, if the confirming banks fails to
claim from you
C) Your bank will entertain request to pay claim with a back value.
D) Your bank cannot disregard a claim received 3 banking days prior to the value date

39. A nominated bank of letter of credit subject eUCP received an electronic record on 31st
March. The electronic records were corrupt and hence the bank requested the beneficiary to
represent the records. Which of the following statements are CORRECT?
1. Nominated bank should inform the issuing bank of such request
2. If the electronic record is represented on 03 April, the period for examination begins from
01 April
3. Presenter has 30 calendar days to re-present the documents
4. Any deadlines are not extended

A) 1&2
B) 1, 2 & 3
C) 1, 3 & 4
D) 1&4

Page 8 of 33
Queries 01712 175 979
 Otboot of Trarre
40. Place of presentation under an eUCP credit which requires presentation of electronic record
only is
A) Counters of issuing bank
B) Counters of nominated bank
C) Place of beneficiary
D) Electronic address

41. Which of the following statements in TRUE?

A) Beneficiary can assign proceeds, only when the documentary credit is transferable
B) The assignee has the right to present documents under the credit
C) The right of beneficiary to assign proceeds is governed by the applicable law.
D) Beneficiary can assign proceeds only if it is allowed in the documentary credit.

42. An L/C is opened for three installment of approx. USD 300,000 each. The total liability of the
issuing bank under the UC is
A) USD 300000
B) USD 900000
C) USD 330000
D) USD 990000

43. What is the effect of an evergreen clause in a documentary credit?

A) It allows for payment to be made against production of a warehouse receipt
B) It allows beneficiary to draw on the L/C to insure the goods in certain trades
C) It makes the L/C inoperative
D) It allows the L/C validity to be automatically extended

44. Which of the following marine bills of lading will be considered discrepant as per UCP?
A) A bill of lading showing goods may be carried on deck
B) A bill of lading showing carrier reserves the right to transship
C) A bill of lading showing content of packages unknown
D) None of the above

45. Prior to Advising a documentary credit to the beneficiary, the advising bank is responsible for
A) Effecting payment against conforming documents
B) Checking apparent authenticity of the documentary credit
C) Notifying the issuing bank that the documentary credit is being advised
D) Checking that the reimbursement method is effective

46. 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 suit the exporter's needs?
A) Transferable
B) Revolving
C) Standby
D) Evergreen

47. Which of the following statement is TRUE?

A) Seiner pays the freight charges in FAS contract#
B) Seller obtains import clearance in CFR contract °
C) Buyer obtains export clearance in FCA contracte
D) Buyer pays the ocean freight charges in FOB contractl

Page 9 of 33

Queries 01712 175 979

 •1 • • • NIM MENNE

iikboot of Trabe

48. The beneficiary has a responsibility to examine carefully the credit received to ensure that
1. The beneficiary can obtain all the documents stipulated in the Credit
2. All the terms and conditions of the credit can be complied with
3. The credit has been opened in accordance with the sales or other agreement
4. All charges will be for applicant's account

A. 1&2
B. 1,2&3
C. 1,2&4
D. 2,3&4

49. Bank N received an amendment to an L/C for which it has added it confirmation. Which of the
following statements BEST describe the course of action available to Bank N, if it does not wish
to extend its confirmation to the amendment?
A) Bank N should request the beneficiary to reject the amendment
B) Bank N should reject the amendment and inform the issuing bank to cancel the
amendment
C) Bank N should inform the beneficiary that it is not extending its confirmation to the
amendment
D) Bank N should inform the beneficiary and issuing bank that it is not extending its
confirmation to the amendment

50. Which of the following statements BEST describe actions of a nominated bank in a
documentary credit
1. It should add its confirmation to the credit
2. It should advise the beneficiary of its agreement to act as a nominated bank
3. In the event it has agreed to act as a nominated bank, it should process discrepant
documents in terms of article 16 of UCP600
4. Should discuss with the beneficiary the possibility of discrepancies arising and how they
may be resolved prior to formal presentation of documents

A. 1&2
B. 2&3
C. 1,2&3
D. 2,3&4

51. A beneficiary of a irrevocable letter of credit becomes bound by the terms of an amendment
to the credit at the time
1) the amendment is issued by the issuing bank
2) the amendment is advising by the advising bank
3) the beneficiary presents documents which comply with the terms and conditions of the
credit and the amendment
4) the beneficiary notifies its acceptance of the amendment

A. 3 only
B. 3&4
C. 1,3&4
D. 1&4

52. A documentary credit is received without a stipulation on whether it is transferable. Which of

the following statements is applicable?
A) Credit is transferable
B) Refer to issuing bank
C) Refer to beneficiary
D) Credit is not transferable

Page 10 of 33
Queries 01712 175 979
 fkbooi of trabe
53. Which of the following is NOT a risk for a bank which is issuing a shipping guarantee?
A) The bank takes on a primary responsibility by instructing carriers to release goods to the
applicant without original bills of lading
B) Bank deals with goods, contrary to the position of banks as per UCP 600.
C) Bank will not be able to ascertain its total liability
D) The bank takes on the credit risk of the shipping company,

54. An issuing bank of a documentary credit receives documents on 02 April and finds them to be
in order on 05 April. Tenor of the documentary credit is 60 days from sight. If the drafts are drawn
on the issuing bank on what date the issuing bank is expected to effect payment?
A) 31 May
B) 01 June
C) 03 June
D) 04 June

55. Which of the following signatures is NOT ACCEPTABLE in a non negotiable seaway bill?
A) <sign>, Captain, Carrier — Road & Air Ltd
B) <sign>, ABLE Forwarding Co., Ltd, Acting as carrier
C) <sign>, Alpha & Sons, As agent for the carrier
D) <sign>, Best Shipping Ltd as carrier

56. Which of the following statements is NOT TRUE?

1. An essential term of the sales agreement is the seller's undertaking to provide the goods
to the buyer without the buyer's undertaking to pay the price in return
2. A documentary credit is an undertaking separate from the export agreement or other
commercial transaction on which it may be based
3. In commercial terms, documentary credits are issued to facilitate performance of the
buyer's payment obligation to the seller
4. Because the sales agreement is signed by the seller and the buyer, banks are also
involved in the sales agreement .

a) 1 and 4 only
b) 2 and 3 only
c) 4 only
d) 1only

57. Which of the following statements is TRUE?

1. In EXW, when the goods are ready for delivery, the seller must give notice of the
availability of the goods to the buyer to enable the buyer to take the delivery of goods
from the agreed named place
2. In FCA, the seller bears all risks of loss or damage to goods until they have been
delivered to the carrier or another person nominated by the buyer
3. In CPT, the risk of loss or damage to goods, as well as any additional costs due to events
occurring after the goods have been delivered to the carrier, is transferred from the seller
to the buyer when the goods have been delivered into the custody of the carrier
4. In CIP, the seller provides a commercial invoice, an appropriate transport document
(clean bill of lading) freight unpaid, and cargo insurance policy

a) 1 and 2 only
b) 2 and 3 only
c) 1,2 and 3 only
d) All of the above

Page It of 33
Queries 01712 175 91f

• WEEMS =MEM
 brboot of Vtrabe
58. Which of the following statements is INCORRECT?

ISP98 do not define or otherwise provide for:

a) Power or authority to issue a standby
b) Formal requirements for execution of a standby
c) Defenses to honor based on fraud, abuse or similar matters
d) How to examine a type of document presented under a standby for which UCP600
contained detailed rules

59. Under a transferable standby, which allows partial transfer, was transferred to a 2nd
beneficiary for 50% of the value. First beneficiary assigned the rest 50% to a person which was
acknowledged by the issuing bank. Later the issuing bank amended the LC and reduced the
value by 50%. The first beneficiary accepted the amendment. Which of the following statements
is TRUE?

a) The assignee will have claim under the standby

b) The transferee will not have claim under the standby
c) The first beneficiary cannot accept the amendment
d) The assignee will not have claim under the standby

60. Which of the following statements are CORRECT under ISP98?

1. An issuer is required to notify the applicant of receipt of a presentation under a standby.

2. Any required document must be issued by the beneficiary unless the standby indicates
that the document is to be issued by a third party or is the type of document that practice
would dictate be issued by a third party.
3. Documents issued by the beneficiary must be in the language of the standby.
4. If the original standby is lost, stolen or mutilated, the issuer is obliged to replace it.

a) 1 and 2 only b) 3 and 4 only c) 2 and 3 only d) 1 and 3 only

Page 12 of 33
Queries 01712 175 979
 Orboof of Tube
MOCK 6— SECTION B

61. Banks A, B, & C issue an ISP98 standby for US$ 1,000,000,000.00 with Bank A liable for
50% and Banks B & C liable for 25% each. The standby states that presentation must be made to
Bank A and not to Banks B or C. It also provided that Bank A must promptly notify Banks B & C
within one banking day of the time of receipt of any presentation by telecommunication. The
beneficiary makes presentation to Bank C on Monday which forwards the documents to Bank A
that day and they are received by Bank A on Tuesday. The credit expired on Monday which was
a business day on which the bank was open.

From the information available, which of the following statements are CORRECT?
a) Bank A must give a notice of refusal stating that the credit has expired.
b) The presentation was timely and Bank A must honor.
c) The credit had expired so Bank A is not obligated to honor.
d) None of the above

62. Which of the following statements is CORRECT?

1. In the case of an unconfirmed negotiation documentary credit, the nominated bank will
generally negotiate on with-recourse basis
2. In a freely available credit, any bank is a nominated bank
3. In the case of confirmed negotiation documentary credit, the confirming bank undertakes
that such negotiation is on the responsibility of the issuing bank
4. A documentary credit that is available with a nominated bank is also available with the
confirming bank (if any)

a) 1 and 2 only
b) 3 and 4 only
c) 1, 2 and 3 only
d) 4 only

63. Which of the following statements is INCORRECT with respect to confirming bank?

a) A confirming bank which does not wish to extend its confirmation to an amendment must
inform the beneficiary in its advice enclosing the amendment
b) A confirming bank must process discrepant documents in terms of article 16 and related
articles of UCP 600
c) If a credit is available by acceptance with another nominated bank and drafts are
accepted by that nominated bank, the confirming bank is not liable to pay at maturity in
case of any default
d) If documents were lost between the nominated bank and the confirming bank and the
nominated bank certifies compliance, the confirming bank will have to pay the nominated
bank.

64. Which of the following statements is NOT TRUE for Clean Credit?

1. Issuer of the clean credit is obligated to pay against the bills of exchange drawn on the
issuer
2. Commercial Invoice and Transport Documents are also required for payment in addition
to bills of exchange
3. Clean credit is used for commercial purpose like movement of goods or an event of
default
4. A direct pay standby letter of credit is an example of Clean Credit 4

a) 1 and 2 only
b) 2 and 3 only
c) 3 and 4 only
d) 1 and 4 only

Page 13 of 33

Queries 01712 175 979

 i§tboof of Trabe
65. Which of the following statements are CORRECT?

1. An authenticated teletransmission of a credit or amendment followed by a mail

confirmation will be deemed to be the operative credit or amendment
2. If a teletransmission states "full .details to follow", then the teletransmission will not be
deemed to be the operative credit or amendment
3. An issuing bank, that sends a pre-advice, undertakes to honor a complying a
presentation without delay
4. An issuing bank that sends a pre-advice is irrevocably committed to issue the operative
credit or amendment, without delay, in terms not inconsistent with the pre-advice

a) 1 and 2 only
b) 2 and 3 only
c) 2 and 4 only
d) 1 and 3 only

66. Which of the following statements are INCORRECT?

1. A charterer may also be the applicant in an FOB contract

2. A charterer may also be the beneficiary in an CFR or CIF contract Ld
3. If a credit allows charter party bill of lading, banks will have to examine the charter party
contract
4. If an agent signs the charter party bill of lading on behalf of the charterer, the name of the
charterer need not be stated

a) 1 and 2 only
b) 3 and 4 only
c) 3 only
d) 1,2 and 4 only

°Which of the following statements are INCORRECT?

1. Consignor in an Airway Bill can change the destination of the goods up to the point of
delivery
2. Consignor in an Airway Bill can change the consignee of the goods up to the point of
delivery
3. The carrier of an Airway Bill can deliver goods to the consignee against a delivery order
from the named consignee
4. The carrier of an Airway Bill is entitled to effect delivery of goods to the holder of one
original airway bill

a) 1 and 4 only
b) 2 and 4 only
c) 2 and 3 only
d) 4 only

68. Delivery is controlled by presentation of original transport document only in which of the
following cases?
1. Marine/Ocean Bill of Lading
2. Charter Party Bill of Lading
3. Airway Bill
4. Road Consignment Note

a) 1 and 2 only
b) 2 only
c) 1 only
d) All of the above

Page 14 of 33
Queries 01712 175 979
I '
 ikboot of trab
69. Which of the following statements with respect to Courier Receipt are CORRECT?

1. 'Pick-up' is the situation in which the sender takes the goods to the courier service
2. 'Receipt' applies if the courier services collects the goods from the sender
3. The date of pick-up or of receipt is deemed to the date of shipment or dispatch of the
goods
4. If a credit calls for dispatch by a named courier company, the named courier company
must appear on the document

a) 2, 3 and 4 only
b) 2 and 3 only
c) 3 and 4 only
d) All of the above

70. If a credit requires presentation of a courier receipt (as evidence of shipping goods) to be
marked freight prepaid, banks will accept a courier receipt which...
a) States 'Freight to Collect'
b) Shows the sender's account number held with the courier company
c) Mentions the amount of courier charges paid
d) Indicates that courier charges are on account of receiver

Page 15 of 33
Queries 01712 175 979
 Orboot of Xrabe
MOCK-6 IN BASKET 1

At Bank Blue documents under an LC issued by it were received on 25-Feb and were found to be
discrepant on 26-Feb. Bank Blue approached the applicant for a waiver on 27-Feb. The applicant
agreed to the waiver on 29-Feb and Bank Blue accepted the waiver on the same day.

All Saturdays and Sundays are bank holidays. vi

71. What is the maturity date?

A. 25-Feb + 60 days
B. 26-Feb + 60 days
C. 27-Feb + 60 days
D. 29-Feb + 60 days

72. If the tenor in the LC is 60 days after acceptance, what will be the maturity date?
A. 25-Feb + 60 days
B. 26-Feb + 60 days
C. 27-Feb + 60 days
D.'29-Feb + 60 days

73. What is the latest date for presentation of documents at the counters of Bank Aqua, London if
it is acting as a negotiating bank? Cz.rt0- Gird'
A. 25-Feb
B. 26-Feb
C. 27-Feb
D. 05-Mar
••••"kw•
orti- D o
74. Which of the following is a Discrepancy? F Ty-04,N?
i. Partial shipment affected
ii. Late shipment ct-Tr"
iii. Goods shipped on deck

A. I only
B. I and ll
C. I, ll and III
D. None of the above

76. Which of the following is a Discrepancy?

i. Beneficiary's certificate does is in conflict with the LC term
ii. Combined invoice and packing list presented instead of separate invoice and packing list Li
FCR consignee is not as per LC

A. I only
B. I and II
C. I, II and III
D. None of the above

FEB MAR APR

SMTWTFS SMTWTFS SM TWT FS
1 2 1 1 2 3 4 5
8 9 2 3 4 5 6 7 8 6 7 8 9 10 11 12
3 4 5 6 7
14 15 16 9 10 11 12 13 14 15 13 14 15 16 17 18 19
10 11 12 13
22 23 16 17 18 19 20 21 22 20 21 22 23 24 25 26
17 18 19 20 21
24 25 26 27 28 29 23 24 25 26 27 28 29 27 28 29 30
30 31

Page 16 of 33
Queries 01712 175 979
 Orboot of Tram
MT700 Sent on 15-Feb
SENDER: Bank Blue, BEIJING
RECEUVER: BANK AQUA, LONDON

F27: SEQUNCE OF TOTAL 1/1

F40A: Form of Documentary Credit : IRREVOCABLE
F20: Documentary Credit Number : LIL1234
F31C: Date of Issue XX0215
F40E: Applicable Rules UCP LATEST VERSION
F31D: Date and Place of Expiry XX0305 BENEFICIARY'S COUNTRY
F50: Applicant ECO-CONTAINERS LTD
GRAFENAUWEG 4
CH-6304 ZUG, CHINA
F59: Beneficiary - Name & Address: GO-GREEN LTD
ONE POST OAK CENTRAL
2000 POST OAK BOULEVARD
SUIT 100, UK
F32B: Currency Code, Amount USD10000,00
F41D: Available With. ..By... ANY BANK
BY NEGOTIATION
F42C: Drafts at... 60 DAYS AFTER SIGHT
F42D: Drawee - Name & Address : Bank Blue, BEIJING
F43P: Partial Shipments • NOT ALLOWED
F43T: Transshipment • ALLOWED
F44E: Port of Loading FELIXSTOWE
F44F: Port of Dischrge SHANGHAI
F44C: Latest Date of Shipment XX0215
F45A: Description of Goods
FOOD CONTAINERS AS PER PO 6243 — 50 CARTONS
FOB FELIXSTOWE

F46A: DOCUMENTS REQUIRED

1.INVOICE IN TRIPLICATE

2. PACKING LIST IN TRIPLICATE

3. FORWARDER'S CARGO RECEIPT, CONSIGNED TO THE ORDER OF THE APPLICANT, NOTIFY

APPLICANT AND MARKED FREIGHT COLLECT

4. BENEFICIARY'S CERTIFICATE EVIDENCING COMMERCIAL INVOICE AND PACKING LIST HAVE

BEEN FAXED TO THE APPLICANT IMMEDIATELY AFTER SHIPMENT

F47A: ADDITIONAL CONDITIONS

+ ALL DOCUMENTS MUST BE SENT IN ONE LOT BY COURIER TO: BANK BLUE, BEIJING, CHINA

F71B CHARGES
ALL BANK CHARGES IN THE COUNTRY OF BENEFICIARY ARE FOR THE ACCOUNT OF
BENEFICIARY
ALL BANK CHARGES IN THE COUNTRY OF APPLICANT ARE FOR THE ACCOUNT OF APPLICANT

F48: PERIOD FOR PRESENTATION

DOCUMENTS TO BE FORWARDED WITHIN 10 DAYS AFTER THE SHIPMENT DATE BUT WITHIN THE
CREDIT VALIDITY

F49 CONFIRMATION INSTRUCTION

WITHOUT

Page 17 of 33
Queries 01712 175 979
 ikboot of erabe
BANK AQUA
London, 40 Bank Street, Canary Wharf, Uk

Documentary Remittance
To: Bank Blue, Beijing Always quote our ref no. W41/1
03-Mar->o<
Dear Sir/Madam,

We enclose the following documents negotiated by us under the credit mentioned below and certify that all
terms and conditions of the credit have been complied with unless otherwise specified hereunder:

Credit no LIL1234
AMOUNT USD10,000.00 + OUR CHARGES 0
TOTAL AMOUNT USD10,000.00

BENEFICIARY GO-GREEN LTD, BEN REF: DKVV805

IN REIMBURSEMENT, please pay the total to Bank Aqua, New York for credit to our Export dept. under
advice to us quoting our above ref.

We note the following discrepancies: Late shipment, Late presentation, On Deck shipment, Partial shipment
etc.

Your faithfully,
Signed/-
Authorised signature

BILL OF EXCHANGE

USD10,000.00 LONDON, 10-FEB-XX

At 60 days after sight of this sole bill of exchange pay to order of Bank Aqua the sum of US
dollars Ten Thousand Dollars only.

To
Bank Blue Signed/-
Beijing GO-GREEN LTD
GO-GREEN LTD
ONE POST OAK CENTRAL, 2000 POST OAK BOULEVARD, SUIT 100, UK

Combined Tax Invoice & Packing List

Sold and ship to:
ECO-CONTAINERS LTD 22-FEB-XX
GRAFENAUWEG 4
CH-6304 ZUG, CHINA

Invoice Number 06/77 Purchase order: 6243

Terms: At 60 days after sight

Description Quantity Amount (USD)

FOOD CONTAINERS AS PER PO 6243 50 CARTONS 10,000
TOTAL 10,000

GOODS HAVE BEEN PACKED IN 50 CARTONS

Gross Weight 1200 Kgs
Net Weight 1000 Kgs Signed/-
Measurement 1.56 CBM GO-GREEN LTD

Page 18 of 33
Queries 01712 175 979
 §§tboof of Trabe
GO-GREEN LTD
ONE POST OAK CENTRAL, 2000 POST OAK BOULEVARD, SUIT 100, UK
24-Feb-xx
Beneficiary's Certificate
We certify that the commercial invoice and packing list have been faxed to ECO-CONTAINERS LTD
within 2 days after shipment.
LC NO. LIL1234
Signed/-
GO-GREEN LTD

Shipper FORWARDER'S CARGO RECEIPT

GO-GREEN LTD FCR NO. AKG/741
ONE POST OAK CENTRAL Cargo receiving date 15-Feb-)c<
2000 POST OAK BOULEVARD, SUIT 100, UK
Consignee Notify Party
To ECO-CONTAINERS LTD ECO-CONTAINERS LTD
GRAFENAUWEG 4, CH-6304 ZUG, CHINA
Place of receipt Port of loading Port of discharge Final destination
FELIXSTOWE SHANGHAI SHANGHAI
Vessel SKY TIGER V120 No. of originals ONE (1)
Package / Marks Description of goods Gross weight Measurement
22 Cartons FOOD CONTAINERS 600 KGS 0.78 CBM
AS PER PO 6243
Freight collect FOB FELIXSTOWE
Goods shipped on deck
ADL LLC hereby acknowledges receipt for and on behalf Place & date of issue
of the consignee named therein above the packages and LONDON, 17-FEB-XX
or other shipping units said to have contained the goods Signature
described herein above in apparent good order and J Freinz
condition ADL LLC

Shipper FORWARDER'S CARGO RECEIPT

GO-GREEN LTD FCR NO. AKG/742
ONE POST OAK CENTRAL Cargo receiving date 16-Feb-)o:
2000 POST OAK BOULEVARD, SUIT 100, UK
Consignee Notify Party
To ECO-CONTAINERS LTD ECO-CONTAINERS LTD
GRAFENAUWEG 4, CH-6304 ZUG, CHINA
Place of receipt Port of loading Port of discharge Final destination
FELIXSTOWE SHANGHAI SHANGHAI
Vessel SEA HORSE V210 No. of originals ONE (1)
Package / Marks Description of goods Gross weight Measurement
28 Cartons FOOD CONTAINERS 760 KGS 0.78 CBM
AS PER PO 6243
Freight collect FOB FELIXSTOWE
Goods shipped on deck
ADL LLC hereby acknowledges receipt for and on behalf Place & date of issue
of the consignee named therein above the packages and LONDON, 17-FEB-XX
or other shipping units said to have contained the goods Signature
described herein above in apparent good order and J Freinz
condition ADL LLC

Page 19 of 33

Queries 01712 175 979

•I• M• MI •
 Ocboot of Treth

MOCK-6 IN BASKET 2

BCHB Bank has transferred an LC received by them.

76. What are the irregularities in the transfer?

A. The first beneficiary will be unable to substitute documents to make a compliant presentation
B. Changes in expiry place is not acceptable .
C. Both of the above
D. None of the above

77. What are the irregularities in the transfer?

A. Transferred LC includes an additional clause stating that amount will be remitted after receipt
of fund from issuing bank
B. Transferred credit requires documents to be sent directly to the issuing bank
C. Both of the above
D. None of the above

78. What are the irregularities in the transfer?

A. The notify party in the B/L has been changed
B. The insurance clause has been altered
C. Both of the above
D. None of the above

79. What are the irregularities in the transfer?

A. The unit price has been amended
B. BCHB Bank is not authorized to transfer the LC
C. Both of the above
D. None of the above

80. What are the irregularities in the transfer?

A. The charges clause has been altered
B. The drawee has remained unchanged
C. Both of the above
D. None of the above

Page 200! 33
Queries 01712 175 979
 finboot of Trabe
MT700 ISSUANCE OF A LETTER OF CREDIT
SENDER: SIMO BANK, BRITISH VIRGIN ISLANDS
RECEIVER: BCHB BANK, SHANGHAI, CHINA

F27: SEQUNCE OF TOTAL 1/1

F40A: Form of Documentary Credit : IRREVOCABLE TRANSFERRABLE
F20: Documentary Credit Number : SIM0123
F31C: Date of Issue XX0321
F40E: Applicable Rules UCPURR
F31D: Date and Place of Expiry XX0430 TRANSFERRING BANK'S COUNTER
F50: Applicant TUNAMI LTD
NO. 186, SECOND CROSS STREET
TORATOLA, BVI
F59: Beneficiary - Name & Address: WB TEXTILES
SHANGHAI, CHINA
F32B: Currency Code, Amount USD100,000
-.7-7--ev--
F41D: Available With...By... ANY BANK — -
BY NEGOTIATION -Frozan-s,3
F42C: Drafts at... SIGHT
F42D: Drawee - Name & Address : ISSUING BANK
F43P: Partial Shipments ALLOWED
F43T: Transshipment NOT ALLOWED
F44E: Port of Loading ANY ASIAN PORT
F44F: Port of Dischrge ANY USA PORT
F44C: Latest Date of Shipment XX0408
F45A: Description of Goods
TEXTILES –10,000 MTRS AT USD10 PER METER CIF USA PORT

F46A: DOCUMENTS REQUIRED

1. SIGNED INVOICE CERTIFIED BY ABC INSPECTORS
2. PACKING LIST
3. FULL SET OF CLEAN ON BOARD OCEAN BILL OF LADING MADE OUT TO THE ORDER OF
SHIPPER BLANK ENDORSED, MARKED "FREIGHT PREPAID" AND NOTIFY APPLIC
4. INSPECTION CERTIFICATE
5. INSURANCE POLICY OR CERTIFICATE FOR 110%

F47A: ADDITIONAL CONDITIONS

+ A DISCREPANCY FEE OF USD50 WILL BE DEDUCTED FROM THE PROCEEDS UPON RECEIPT OF
EACH SET OF DISCREPANT DOCUMENTS.
+ NEGOTIATING BANK TO CLAIM REIMBURSEMENT FROM IMPORTER BANK AT SIGHT BASIS

F71B CHARGES
ALL BANKING CHARGES OUTSIDE ISSUING BANK ARE FOR ACCOUNT OF BENEFICIARY

F72: SENDER TO RECEIVER INFORMATION

PLEASE DESPATCH THE REQUIRED DOCUMENTS IN 2 LOTS TO SIMO BANK, BRITISH VIRGIN
ISLANDS

Page 21 of 33
Queries 01712 175 979
 arboof of Trabe
MT720 TRANSFER OF A LETTER OF CREDIT
SENDER: BCHB BANK, SHANGHAI, CHINA
RECEIVER: SCHEDULE BANK, BANGKOK, THAILAND

F27: SEQUNCE OF TOTAL 1/1

F40A: Form of Documentary Credit: IRREVOCABLE
F20: Transferring Bank's Ref 123568
F21: Documentary Credit Number : SIM0123
F31C: Date of Issue XX0321
F40E: Applicable Rules UCP
F31D: Date and Place of Expiry XX0415 THAILAND
F52A: Issuing bank SIMO BANK, BRITISH VIRGIN ISLANDS
F50: First Beneficiry WB TEXTILES
SHANGHAI, CHINA
F59: Second Beneficiary WLK GARMENTS
BANGKOK, THAILAND
F32B: Currency Code, Amount USD88,000
F41D: Available With...By... ANY BANK
BY NEGOTIATION
F42C: Drafts at... SIGHT
F42D: Drawee - Name & Address : SIMO BANK, BRITISH VIRGIN ISLANDS
F43P: Partial Shipments • ALLOWED
F43T: Transshipment NOT ALLOWED
F44E: Port of Loading ANY ASIAN PORT
F44F: Port of Dischrge ANY USA PORT
F44C: Latest Date of Shipment )0<0401
F45A: Description of Goods
TEXTILES —8,000 MTRS AT USD11 PER METER CIF USA PORT

F46A: DOCUMENTS REQUIRED

1. SIGNED INVOICE CERTIFIED BY ABC INSPECTORS
2. PACKING LIST
3. FULL SET OF CLEAN ON BOARD OCEAN BILL OF LADING MADE OUT TO THE ORDER OF
SHIPPER BLANK ENDORSED, MARKED "FREIGHT PREPAID" AND NOTIFY "WBL TEXTILES"
4. INSPECTION CERTIFICATE
5. INSURANCE POLICY OR CERTIFICATE FOR USD121,000

F47A: ADDITIONAL CONDITIONS

+ A DISCREPANCY FEE OF USD50 WILL BE DEDUCTED FROM THE PROCEEDS UPON RECEIPT OF
EACH SET OF DISCREPANT DOCUMENTS.
+ WE WILL REMIT YOU ONLY AFTER RECEIPT OF FUNDS FROM ISSUING BANK

F71B CHARGES
ALL BANKING CHARGES OUTSIDE TRANSFERRING BANK ARE FOR ACCOUNT OF SECOND
BENEFICIARY

F72: SENDER TO RECEIVER INFORMATION

PLEASE DESPATCH THE REQUIRED DOCUMENTS IN 2 LOTS TO SIMO BANK, BRITISH VIRGIN
ISLANDS

Page 22 of 33
Queries 01712 175 979
 Orboot of Trae
MOCK-6 IN BASKET 3
As a document checker, you are given an LC with attached documents.
Please answer the following questions

81. Which of the following is a discrepancy except?

1. Description of goods in invoice not as per LC .
2. Goods overshipped
3. Port of Loading & Port of Discharge not as per LC •
4. BL date in Draft incorrect

A. 3 only
B. 1,2 & 3 only
C. 1,2 &4 only
D. None of the above

82. Which of the following is NOT a discrepancy?

1. Consignor in CO inconsistent with consignor in BL
2. CO issued by chamber of commerce
3. PL presented i/o Packing certificate
4. Tax invoice presented i/o invoice.

A. 2 only
B. 1, 3 & 4 only
C. 1,2 &4 only
D. All of the above

83. Which of the following is a discrepancy?

1. Shipping marks in the packing certificate inconsistent with BL
2. BL not signed as per UCP600
3. Claused BL presented
4. Goods over insured

A. 1 only
B. 1 & 2 only
C. 1,2 & 3 only
D. None of the above

84. Which of the following is NOT a discrepancy except?

6-1 1. Insurance not blank endorsed
• 2. Freight Terms in B/L inconsistent with the LC
3. Consignee in B/L not as per LC
4. LC amount overdrawn

A. 2 & 4 only
B. 2 only
C. 1 & 2 only
D.All of the above

85. Which of the following is NOT a discrepancy except?

1. Document date exceeded the maximum presentation period allowed by the credit
2. CIF value in the invoice incorrect
3. Insurance certificate issued after shipment
4. Transshipment effected f,

A. 1 Only
B. 1 & 2 Only
C. 1,2 & 3 Only
D. All of the above

Page 23 01 33

Oueries 01712 175 979

 Orboot of Trabe
MT700
SENDER: SAPHIRE BANK, HONG KONG
RECEIVER: SAPHIRE BANK, SINGAPORE

Form of Documentary Credit IRREVOCABLE

Transaction reference number 98/9999
Documentary Credit Number AAB HK 1234/1
Date of Issue 15-JAN-20XX
Date and Place of Expiry 30-MAR-20XX SINGAPORE
Issuing Bank SAPHIRE BANK
QUARR BAY, HONG KONG
Applicant ELECTRONIC SYSTEMS LTD
24 KOWLOON ROAD, HONG KONG
Beneficiary - Name & Address FANCY GOODS LTD
28 JURONG ROAD, SINGAPORE 222909
Currency Code, Amount APPROXIMATELY USD50,000
Available With... By... M SINGAPORE BY ACCEPTANCE
Drafts at... 120 DAYS FROM BILL OF LADING DATE
Drawee - Name & Address SAPHIRE BANK, HONG KONG
Partial Shipments NOT ALLOWED
Transshipment NOT ALLOWED
Loading on board/Dispatch SINGAPORE
For transportation to HONG KONG
Latest Date of Shipment 20-MAR-XX

Description of Goods :
45 UNITS OF COMPUTER SPARE PARTS AS PER ORDER 12435 FOR MODEL NUMBERS XYZ

Documents required
1. 3/3 SHIPPED B/L ISSUED TO THE ORDER OF APPLICANT AND MARKED 'CLEAN ON BOARD'
MARKED FREIGHT PREPAID
2. INVOICE IN SIX COPIES SHOWING CIF VALUE OF GOODS FOR THE AMOUNT OF THE DRAWING
AND CERTIFYING THAT PRO-FORMA INVOICE NUMBER 12345 HAS BEEN COMPLIED WITH
3. CERTIFICATE OF ORIGIN ISSUED BY MANUFACTURER
3. PACKING CERTIFICATE IN SIX COPIES
4. INSURANCE CERTIFICATE IN DUPLICATE FOR 110% OF CIF VALUE COVERING CARGO FOR AL
RISK AS PER ICC(A), INSTITUTE WAR RISKS, INSTITUTE STRIKE CLAUSES BLANK ENDORSED BY
ASSURED WITH CLAIMS IF ANY PAYABLE AT DESTINATION

Additional conditions
+ DRAFT TO INDICATE THAT IT IS DRAWN UNDER AAB HK 2008/1
+ REIMBURSEMENT CLAIMS ARE SUBJECT TO URR725
+ THIS LETTER OF CREDIT IS SUBJECT TO UCP600

Charges
ALL BANK CHARGES OUTSIDE OF HONG KONG ARE FOR ACCOUNT OF BENEFICIARY

Period for presentation

+ WITHIN 10 DAYS

Confirmation instruction
+ WITHOUT

Reimbursing Bank
+ SAPHIRE BANK, NEW YORK

Page 24 of 33
Queries 01712 175 979
 anbool. of trabe
FANCY GOODS LTD
28, Jurong Road, Singapore, 22909
20-Mar-XX
To: Saphire Bank, Singapore
Re: Documents under LC HK 123411 issued by Saphire.HongKon

We hereby enclose documents for USD53,000

[ Invoice 6, BL 313+3c, Insurance 3, Co 2, Packing list 6]
Please accept and discount the drawing and credit the proceeds, less any handling and advising fee already
advised, to the current account held with you.

Your truly,
Signed/-
Fancy Goods Sin Ltd

DRAFT
SINGAPORE, 10-MAR-XX
lJSD53 000
pay to the order of Fancy Goods Sin Ltd
At 120 days from Bill of Lading Date
Fifty Three Thousand US Dollars
Bill of Lading date — 11 March XX

For value received Fancy Goods Sin Ltd

To Signed/-
Saphire Bank John smith
Hong Kong Reverse side of the draft has following endorsement
Signed/-
John smith
Fancy Goods Sin Ltd

FANCY GOODS LTD

28, Jurong Road, Singapore, 22909

Tax Invoice
10-MAR-XX
Sold to: Terms: LC
ELECTRONIC SYSTEMS LTD
24 KOWLOON ROAD, HONG KONG
Proforma number: 12345
Invoice Number 06/77

Description
units of computer spare parts strictly as per proforma order 12435
46

COSTS
FOB Costs USD 46000
Freight Costs USD 4600
Insurance USD 2000
Misc costs USD 400
Total CIF Hong Kong USD53,000
Sales tax 3% applicable Signed/-
Fancy Goods Sin Ltd

Page 25 of 33 Queries 01712 175 979

 Orboof of Crabe
FANCY GOODS LTD
28, Jurong Road, Singapore, 22909

10-MAR-xx
Packing List relating to our invoice number 06/77

46 wooden Export crates each containing one unit of computer spare parts
Each crate measuring one cubic metre
Each crate includes polystyrene protective material

We certify that the commercial invoice and packing list have been faxed to ECO-CONTAINERS LTD within 2
days after shipment.

Shipping marks:
ES Hong Kong
Po — 12345
1-46

Signed/-
GO-GREEN LTD

Shipper COMBINED TRANSPORT B/L

FANCY GOODS LTD ref ABC 123 415 774
SINGAPORE
Consignee Carrier
ELECTRONIC SYSTEMS LTD, HONG KONG YIM YANSON FORWARDING LTD
23F OCEAN CENTRE, SINGAPORE
Notify party
ELECTRONIC SYSTEMS LTD, HONG KONG

Place of receipt Port of loading Port of discharge Final destination

SINGAPORE HONG KONG

Intended Vessel BREEZE Intended VOYAGE V.8 No. of originals THREE (1)

Freight pre-payable at
Port of Loading

Package! Marks Description of goods Gross Measurement

weight
Container nos./seal 46 units of computer spares with 4600 46 CBM
ES HONG KONG manuals as per order 12345 for Kgs
PO — 12345 model no. xyz packed in individual
NOS. 1-46 wooden crates suitable for export

c,leaR on board
10-MAR-XX
* One case may be broken
Carrier reserves the right to
transship
SHIPPED in apparent good order and Signature
condition for carriage to the final destination. <seal - YIM Yanson Forwarding Ltd>
Weight measurement, quality, quantity, Place & date of issue:
Signed/-
condition, contents and value unknown.
YIM Yanson Forwarding Ltd Singapore 11-MAR-XX
IN WITTNESS whereof,...(see next page(s))
Acting as carrier

Page 26 of 33
Queries 01712 175 979
 anboot of Mrabe
CERTIFICATE OF ORIGN
21-MAR-x)<
Issued by: Singapore — Hong Kong Chamber of Commerce
Certificate no: YUH 963
Manufacturer Consignee
Fancy Goods Ltd, Singapore Electronic Systems Ltd, Hong Kong
BREEZE V 83.0 Shipment date 02-MAR-XX INVOICE NO. 06R
Vessel
Description of goods 46 wooden Export crates of computer spare parts
Shipping marks Amounts
ES HONG KONG USD53,000
PO — 12345
Nos. 1-46

I hereby certify that the goods described above are produced / manufactured in SINGAPORE

Signed/-
AUTHORIZED SIGNATORY

GREATER ROYAL INSURANCE CO ORIGINAL

28 Bates Road, Singapore, 333888
Certificate of Marine Insurance
Assured reference no. 923167 Date 12 March )ooc<
Certificate No. 06/7157

This is to certify that Greater Royal Insurance co. has insured under open policy the goods specified below,
valued at the sum insured for the insured transit and on the conditions stated in this certificate.

Assured: To Bearer
Sum Insured: USD Sixty Thousand [ USD60,000.00]
Vessel/Aircraft/Conveyance:MN Bushy
Insured Transit: Singapore to Hong Kong with effect from 10 March XX

Marks ES HONG KONG 1-46 Description 46 units spare parts

Claims to be adjusted according to the conditions of the policy which contain interalia the following clauses:
This insurance covers all risks of loss or damage to the subject matter insured as provide In the ICC (A) but
subject to the exclusions contained herein:
Insitute War Clauses (Cargo), Insitute strike Clauses as applicable

Notwithstanding anything contained herein to the contrary the liability under this policy shall not exceed its
rateable proportion having regard to other insurance whether marine or fraud and whether or not such other
insurance are exempt from contributing either by the existence of this policy or any other.

In the event of loss or damage for which the company may be liable under this certificate immediate notice
must be given to:-

Claims payable at: Hong Kong

By: Greater Royal Insurance Co., Sea view street
Special instructions: see overleaf
This certificate is not valid unless countersigned by Fancy Goods Sin Ltd

For Fancy Goods Sin Ltd For Greater Royal Insurance Co

Signed signed
Export Manager Managing Director

Page 27 of 33
Queries 01712 175 979
 IIIM l• I= MN • •• ••=• •• I I •

Orboot of Tube
MOCK-6 — SIMULATION 1

INSTRUCTIONS

You are a documentary credit specialist at EXPORTER BANK OF ENGLAND, LONDON, UK.
You have been requested by the issuing bank, IMPORTERS BANK OF CHINA, SHANGHAI,
CHINA to add confirmation on the LC.

SUPPORTING DOCUMENTATIONS

1) Documentary Credit (MT 700) (Page-30)

INSTRUCTIONS TO CANDIDATES

Identify FIVE CORRECT issues that represent workability issues to the beneficiary or that
may prevent you (EXPORTER BANK OF ENGLAND, LONDON, UK) from adding
confirmation.
N.
1 The freight term is inconsistent with the INCOTERMS

2 The usance interest is for the applicant's account

3 The credit allows for shipment from any European port

4 There are conflicting instructions for presentation/disposal for the bill of lading

5 The issuing bank will remit proceeds at maturity

6 The risks to be covered in the insurance document are not specified

7 Documents are to be released to the applicant without payment and payment will not be

made until goods released

8 The signatory requirement on the transport document is inconsistent

9 The quantity of goods is not provided in the LC

10 The LC availability method is inconsistent

Page 28 of 33
Queries 01712 175 979
 anboof of Trabe
MT 700 FOR SIMULATION-1

Sender : IMPORTER BANK OF CHINA, SHANGHAI, CHINA

Receiver: EXPORTER BANK OF ENGLAND, LONDON, UK

F40A: Form of Documentary Credit : IRREVOCABLE TRANSFERRABLE

F20: Documentary Credit Number : ABC123
F31C: Date of Issue : XX0705
F40E: Applicable Rules : UCP LATEST VERSION
F31D: Date and Place of Expiry : XX0401 IN LONDON
F50: Applicant : SHANGHAI TRANS-TRADE CO. LTD.
5 F, DREAM TOWERS, SHANGHAI, CHINA
F59: Beneficiary - Name & Address : SUPERIOR EXPORTERS INC
NO. 54 RIVERSIDE STREET, LONDON
F32B: Currency Code, Amount : USD 130,000
39A: Percentage Credit Amount Tolerance : 5/5
F41D: Available With... By... : ADVISING BANK BY DEFERRED PAYMENT
F42C: Drafts at :120 DAYS FROM BL DATE
42D: Drawee : ISSUING BANK
F43P: Partial Shipments : ALLOWED
F43T: Transshipment : ALLOWED
F44E: Port of Loading : ANY EUROPEAN PORT
F44F: Port of Discharge : SHANGHAI, CHINESE PORT
F44C: Latest Date of Shipment : XX0310

F45A: Description of Goods : MACHINERY AS PER CONTRACT NO. MAC24

CIF SHANGHAI

F46A: Documents Required

+ SIGNED COMMERCIAL INVOICE IN TRIPLICATE SHOWING CONTRACT NO

+ FULL SET CHARTER PARTY BILL OF LADING CONSIGNED TO ORDER AND BLANK ENDORSED
MARKED FREIGHT COLLECT AND NOTIFY APPLICANT. BL TO SHOW AGENT DETAILS AT
DESTINATION.
+ PACKING AND WEIGHT LIST SHOWING QUANTITY/NET WEIGHT OF, GROSS WEIGHT AND
MEASUREMENT OF EACH PACKAGE.
+ BENEFICIARY TO SEND ONE SET OF ORIGINAL DOCUMENTS TO THE APPLICANT WITHIN 10
DAYS AFTER SHIPMENT. A CERTIFICATE OF COMPLIANCE REQUIRED.
+ INSURANCE POLICY/CERTIFICATE COVERING ALL RISKS FOR 110% OF CIF VALUE WITH CLAIMS
PAYABLE IN CHINA IN USD

F47A: Additional Condition

+ DOCUMENTS WILL BE RELEASED TO APPLICANT IN ORDER TO ENABLE TO ARRANGE FOR

INSPECTION. PAYMENT WILL BE WITHHELD TILL GOODS ARE CLEARED BY CIO
+ TRNASPORT DOCUMENTS SHOULD BE SIGNED BY CARRIER OR THEIR AGENTS
+ IN CASE OF REJECTION BY CIO INSPECTION CHARGE TO BORNE BY BENEFICIARY
+ USANCE INTEREST FOR 90 DAYS IS FOR ACCOUNT OF APPLICANT

F59: CONFIRMATION INSTRUCTION : CONFIRM

48: Period for Presentation : WITHIN 21 DAYS AFTER SHIPMENT

71B: CHARGES : ALL BANKING CHARGES OUTSIDE OUR COUNTERS ARE

FOR ACCOUNT OF BENEFICIARY

78: Instructions : UPON RECEIPT OF DRAFTS AND DOCUMENTS IN

COMPLIANCE WE WILL REMIT PROCEEDS ON
MATURITY AS PER YOUR INSTRUCTIONS.
ALL DOCUMENTS TO BE SENT TO OUR HEAD OFFICE IN
ONE LOT BY DHL OR SIMILAR

Page 29 of 33
Queries 01712 175 979

In • I ••I • •• • .• •• • •
 Otboot of Cram
MOCK-6 — SIMULATION 2

Introduction
You are a documentary credit specialist at PQR BANK, NEW DELHI and receive the following LC
Application Form (Page-32) from your customer.

INSTRUCTIONS TO CANDIDATES

Identify FIVE CORRECT statements and transfer your answer to main answer sheet

1 The applicant must provide the relevant Incoterm along with the description of goods

2 The endorsement requirement in the transport document is not workable

3 The transport document called for is not suitable for this transaction

4 The settlement method is inconsistent with the draft requirements

(.
5 The LC amount exceeds the maximum drawings permissible under the LC

6 Advertising material cannot be allowed in the credit

7 As per the application, discount charges are assumed to be to the account of the

beneficiary

8 The LC cannot be transferred as no specific bank is authorized to transfer

9 The presentation period is mismatched

10 The beneficiary will not be able to present an insurance document showing any risk

exclusions
i

Page 30 of 33
Queries 01712 175 979
 (

i§rboot of Xrabe

PQR BANK NEW DELHI

APPLICATION FOR IRREVOCABLE DOCUMENTARY CREDIT

To: Bank of China (Canada) Date: 15-FEB-XX

Please establish by 0 MAIL an Irrevocable x0 Letter of Credit in accordance with the

following:
x0 SWIFT 0 Letter of Guarantee

LC No. (for Bank use only)

Form of Documentary Credit : Irrevocable Transferable

Date and Place of Expiry : 31-Mar-XX, Cambodia
Applicant : Super Star Shoes Ltd., New Delhi
Beneficiary : Five Star Shipping, 28 KK Road Cambodia
Currency Code Et Amount : USD 500,000 (+1-10%)
Available with...by.. : MNO Bank, Cambodia, by negotiation
Draft at :100 days from bill of lading date
C) Drawee
Partial Shipment
: PQR Bank, New Delhi
: Not Allowed
Transhipment : Allowed
Port of Loading : Cambodia
Port of Discharge : New Delhi
Latest Date for Shipment : 10-Mar-XX
Description of Goods:
1000 pairs of gents shoes @ 100 per pair
3000 pairs of ladies shoes @ 120 per pair
Advertising material for USD 50,000
Free of charge goods acceptable
Documents Requried:
1. 3/3 Bill of lading issued to order of PQR Bank and blank endorsed notify applicant and marked
"Clean on Board" marked "Freight Prepaid"
2. Sales Invoice
3. Certificate of origin issued by exporter
4. Insurance certificate issued in duplicate covering cargo for all risks as per ICC (A), Institute War Risks
and Institute Strike Clauses blank endorsed by assuered with claims if any payable at destination
Documents Requried:
1. All documents except certificate of origin to indicate LC no.
(-)
Period for presentation: within 10 days
Confirmation Instruction: May add
Reimbursing Bank : Third party reimbursement subject to URR

By signing this form, the Applicant hereby requests to issue an Irrevocable Letter of Credit substantially in
accordance with the foregoing instructions and acknowledges, agrees to be bound by the terms and conditions on
the General Trade Finance Agreement, this Application and the Letter of Indemnity overleaf.
The Applicant hereby acknowledges and agrees that except as expressly provided by the instructions, a Letter of
Credit shall be subject to Uniform Customs and Practices for Documentary Credits, ICC Publication No. 600 as
revised from time to time.
Applicant:
(Signed/-)
K Lal
Super Star Shoes Ltd.

Applicant's Signature(s)
FOR BANK USE ONLY Signature(s) Verified by

Page 31 of 33
Queries 01712 175 979
 Anboof of Mrabt

MOCK 6 - Simulation 3

Extract from M1700:

:59 : Beneficiary: KGP Valves, Shanghai
:50 : Applicant: Machine Distribution Co, 45, I Maginery Avenue, Lyon, France
:431: Transhipment: Not allowed
:44C: Latest date of shipment: 070709
:44E: Port of loading : Any Chinese Port
:44F: Port of discharge: Lyon
:45A: Valves as per Proforma Invoice No.123
:46A: Documents Required:
Original BL consigned to Machine Distribution Co, 45, I Maginery Avenue, Lyon, France notify
party Applicant evidencing freight prepaid

Beneficiary has presented documents to you under the above LC consisting 3 BLs.

Identify 5 discrepancies

1. Late Shipment

2. Port of discharge not as per LC

3. Shipper in BL is not Beneficiary

4. BL not straight consigned

5. BL not signed as per UCP

6. Transshipment effected

7. BL evidences charges additional to freight

8. BL notify party not as per LC

9. BL evidences onboard date prior to BL issue date

10. BL onboard notation not as per UCP

Page 32 of 33
Queries 01712 175 979
 i

f§tboof of 'C5-rabe

Shipper
Super good exporters Inc
Combined Transport Document
3F, 7th Street
Business District
Fuzhou, China
Consignee (to order of)
Machine Distribution Co
ABC TRANSPORTERS
45, I Maginery Avenue Multimodal Transport Operators
Lyon, France 23F . Ocean Center
Shenzhen
Notify Party China
Machine Distribution Co Phone - 12345316
12F, Building No.3, Fax - 23415675
Marsellie, France Email:Cargo@ABCtransPorters.com
r)-
Place of receipt
Precarriage by
Gross weight Measurement

10.35
10000 KG CBM

(Intended) Ocean vessel

Port of loading
ABC Voyager V. 22E
Shanghai, China

Place of delivery*
Port of discharge
Fos Sur Mer Lyon

Details furnished by the shipper - carrier not responsible

Marks & Nos

Valves 950 Cartons
C/No, 1 -
950
Valves
Container and seal no.
ABCD1234567/0987456
/„,.,‘ 1X45' FCL
Freight prepaid
t )
Shipped on board 10th July 07

Transport Carried Out By:

ABC Transporters

Transhipped at Hong Kong

*applicable when used as combined transport B/L

Prepaid Signed for the master

Freight charges Collect
x
Inland Container shipping agency
x
Sea
Destination THC X
Sd/-
Terms and conditions: Refer to www.abctransporters.com As Agent for the master
No. of originals: 3 (Three)
Issued at Shenzhen on 11-July-2007

Page 33 of 33 Queries 01712 175 979

• = MO= • • •
 1

1 LI

Li
Mock 5
Answer sheet

Name of the candidate

1 A B NO D 51 A 40t- C • . D
2 A B C Mr 52 .e- B C
3 A B AP D 53 ..4.• B C S
4 A •B• MO D 54 A 01§. C D
5 i•Mer
6 expo 0
B C
C
D
D
55 .04r-
56 .0.pow
B
B
C3
C
D
D
D 57 A -"Tr' 12) D 1—t
7
8
A
A
..est,
B
C
asr D 58 A B ••••
-.AP
g
9 A B mew D 59 A B
10 A oir C D 60 A B 00""' D
11 ...Or B C 0 Stand alone questions
12 A• 0 C .•19.' 61 A B .41.• D
13 A B C aiiiir 62 ...g=6=. B C D
14 •••th., B C 12) 63 Joie B 0 0
15 A B C ...1!P 64 ...AA" 0 C D
16 A B C ..11P. 65 A B -6. D
17 A C wry. 66 ..0.- 0 C 0 Lf
0
18 A C D 67 A B C 0
19 aft 0 C D 68 A B --e. D
20 A B C at 69 A B 0 •e"
21 A B C ...410 70 A 0 --c. D
2 A 0 .110, D In Basket 1
2 a9ar B C D 71 ..ii. B C 'D
...v. D 72 A B C -;••
2
2
A
A
B
-Et. 0 D 73 ...etr" B C g
2 A B ••e• 0 74 ••.A. B C
2 A B C 75 A B C
2 A OF' 0 Aga In Basket 2
21 A sir C D 76 C) B C *CT
3I A -411• C D 77 A (A) ...e.. D
31 ad` 0 C D 78 -.A.- B C D
3 : .....4 B C D 79 A .10, 0 D
3 A B ••61.•-• 0 80 (-0 a c ...
3 C D In Basket 3
3i A -a.- C 0 81 ...-ok B C D
3 i -.A 40- C D 82 A B C ...g.
3 C 0 83 A B C --
3 I ....Or B C 0 84 A .5- C D
3 A B ••• D 85 6r- —B-- C D
4/ A B c arisin

4I A . 13 a.* D Sj4lation 1
4t A B tr• 0) ••••••• cD 5 6
43 A B C ...11.
43 A B C ..-Er• 11 12 13 14 15 16
45 A -13— C D Simulation 2
45 A B ...E. D 4 5
4r A B C ..-13-
43 A (B) —0.• D 11 12 13 14

4) A B C Simulatio
5) A --115. C D 3 5 6
c.,

Li