®

Certificate for Documentary Credit Specialists (CDCS )

– 601/1159/8

Session code: Specimen paper C (electronic)

Length of examination: 3 hours
__________________________________________________________________________

Simulation Exercises 1–3

Applicable current ICC rules apply throughout.

Instructions to candidates

1. You can print this document out before answering the Specimen Paper B questions. Please
note: Specimen Paper B is only available in an electronic format.
2. The simulation documents will also be available within the specimen paper itself.

The London Institute of Banking & Finance is a registered charity, incorporated by Royal Charter.

This qualification is accredited by the regulatory authorities for England, Wales and Northern Ireland and is incorporated into the
Qualifications and Credit Framework (QCF) at Level 4.
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CDCS Specimen Paper C - Simulation exercises

SIMULATION 1
Documents
Issuing Bank in People’s Republic of China
Irrevocable Documentary Credit Number 2451

Place and Date of issue: 15 June XXXX

Expiry Date and Place of Presentation for Documents: 31 August XXXX New York
Applicant:
China Machinery & Steel Co.
Beijing (One Special Square)

Advising Bank:
Credit available with the ABC Bank New York by sight payment.

Beneficiary:
Export Machines, Inc.
One Plaza
New York, NY
FAX 347-111-2225

Amount:
About USD 800,000.00

Partial Shipments: Not Allowed

Transhipment: Not Allowed

Insurance covered by applicant.

Shipment from USA port to Shanghai

Documents:
• Original commercial invoice covering 2 compressors and 1 turbine for power plant CFR
Shanghai Incoterms 2010
• Full set bills of lading issued to order of shipper and endorsed in blank marked “notify
applicant”

Other conditions
• Import licence 12345
• Goods to be of US origin

We hereby issue the documentary credit in your favour. It is subject to the UCP 600.

Name and signature of the Issuing Bank in People’s Republic of China.

P. J Chin

P.J. Chin

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CDCS Specimen Paper C - Simulation exercises

EXPORT MACHINES, INC.

ONE PLAZA
NEW YORK, N.Y.
FAX 347-111-2224/2228

FINAL TAX INVOICE

SOLD TO:
CHINA MACHINERY & COPPER CO.
ONE SPECIAL SQUARE
BEIJING, P.R. CHINA
INVOICE NO. 913

QUANITIES: 2 COMPRESSORS FOR ATOMIC/SOLAR PLANT

1 TURBINE FOR SOLAR POWER PLANT

CFR SHANGHAI USD 890,000.00

TWO BOXES OF SPARE PARTS FREE OF CHARGE

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CDCS Specimen Paper C - Simulation exercises

SIMULATION 2
Documents
INCOMING SWIFT MT700

FROM ISSUING BANK FIRST BANK OF NAPLES, NAPLES, ITALY

TO ADVISING BANK INDIAN BANK, NEW ROAD, CALCUTTA, INDIA

27: SEQUENCE OF TOTAL 1/1

40A: FORM OF DOCUMENTARY CREDIT IRREVOCABLE

20: DOCUMENTARY CREDIT NUMBER DJM 232456

40E: APPLICABLE RULES UCPURR LATEST VERSION

31C: DATE OF ISSUE XX0602

31D: DATE AND PLACE OF EXPIRY XX0307, CALCUTTA

50: APPLICANT CAESAR CONSTRUCTION, VIA ROMA, NAPLES, ITALY

RD
59: BENEFICIARY BUILD-IT INDUSTRIES, 3 FLOOR, STAR BUILDING
CALCUTTA, INDIA

32: CURRENCY AND AMOUNT EUR30000,00

41A: AVAILABLE WITH/BY INDIAN BANK, NEW ROAD, CALCUTTA, INDIA

BY PAYMENT

41C: DRAFTS AT SIGHT

42A: DRAWEE INDIAN BANK

43P: PARTIAL SHIPMENTS NOT ALLOWED

43T: TRANSHIPMENT ALLOWED

44A: ON BOARD/TAKING IN CHARGE MUMBAI

44B: FOR TRANSPORTATION TO NAPLES

44D: SHIPMENT PERIOD FIRST HALF OF FEBRUARY

45A: DESCP OF GOODS AND/OR SERVICES 35 TONNES OF FAST SETTING CONCRETE MIX

46A: DOCUMENTS REQUIRED +COMMERCIAL INVOICE DULY SIGNED BY BENEFICIARY

SHOWING CFR NAPLES
+FULL SET 3/3 ORIGINAL BILLS OF LADING, NOTIFY THE
APPLICANT AND MARKED FREIGHT PREPAID.

47A: ADDITIONAL CONDITIONS SHIPPING MARKS B 724 1-60 TO BE STATED ON ALL

DOCUMENTS

71B: CHARGES ALL BANKING CHARGES OUTSIDE OF ITALY ARE FOR

ACCOUNT OF BENEFICIARY

48: PRESENTATION PERIOD 21 DAYS

49: CONFIRMATION INSTRUCTIONS WITHOUT

53A: REIMBURSING BANK EURO BANK FRANKFURT

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78: INSTRUCTIONS TO THE PAYING/ YOU ARE AUTHORIsED TO CLAIM REIMBURSEMENT

ACCEPTING/NEGOTIATING BANK FROM THE REIMBURSING BANK

72: SENDER TO RECEIVER INFORMATION PLEASE ACKNOWLEDGE RECEIPT

****MESSAGE PASSED AUTHENTICATION****

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CDCS Specimen Paper C - Simulation exercises

Name of signatory
K Dev

K. Dev
Signature
For Build-It Industries

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Shipper: BILL OF LADING FOR

Build-It Industries: New
Road Calcutta, India ABC COMBINED TRANSPORT
SHIPMENT OR PORT TO
PORT
Consignee: Caesar
Construction, Via Roma,
LINE B/L Reference number:
Florence, Italy AP213/25

Port of loading: Port of discharge Ocean vessel

Notify:
Mumbai NAPLES The Pride of Mumbai

Marks & No. of Goods description: Gross weight Measurement

Numbers: Packages: Kg: cubic metres:
B 724 60 Cases CONCRETE MIX 33,000 375
MADE IN UK CaseCasaes
1-60

No. of original Bills of Lading: Place and date of issue:

TWO (02) Calcutta, 15 February XX

Shipped on board the

vessel, the goods or
packages said to contain
the cargo described in
apparent good order unless
otherwise stated herein.

Signed:

A McCleish
For ABC Line as the carrier

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CDCS Specimen Paper C - Simulation exercises

SIMULATION 3
Documents
Irrevocable Standby Credit Application Form

Applicant: Issuing Bank:

Enterprise Electronics Company Premium Bank
North Point Street Kennedy Town Road
Hong Kong Hong Kong
Date of Application: Expiry Date and Place for Presentation of
01 December 2XX1 documents
Issue by: Expiry Date: 30 June 2XX2

Airmail Place for Presentation: Buenos Aires,

Courier Argentina
 Teletransmission
Beneficiary:
Buenos Aires Port Authority
Buenos Aires, Argentina
Advising Bank: Amount in figures and words (Please use
Big Apple Bank ISO Currency Codes):
New York, New York USD 500,000 (US dollars five hundred
thousand)
Confirmation of the Credit: Credit available with Nominated Bank:

not requested  requested
authorised if requested Big Apple Bank
by Beneficiary New York, New York

 Credit is to contain an automatic extension clause with (specify all that apply):  by payment at sight
i. a notification period of (__45__) days in the event of non-extension;
by deferred payment at:
ii. multiple renewal period(s) of (__6 months__);
by acceptance of drafts at:
iii. a final expiration date of _1 July 2XX4_________________.
by negotiation:

All banking charges, other than Issuing Bank’s charges, are for account of: Against the documents detailed herein:
 Beneficiary
and Beneficiary’s drafts(s) drawn on:

Applicant

Description of transaction:
Backstop for issuance of a Bank Guarantee by Gaucho Bank on behalf of Enterprise Electronics
Argentina S.A. based on the local standard format to guarantee lease payment obligations at
the Buenos Aires Port Authority under a certain Lease Agreement. The Standby credit will be
effective after the Lease Agreement is signed.
Documents:
Beneficiary’s authenticated SWIFT/Telex or written statement stating the amount of any drawing
hereunder represent funds due and payable because:
A) it has become necessary for Gaucho Bank to make payment under its garantia bancaria
issued on behalf of Enterprise Electronics Argentina S.A., in favor of the Port Authority, Buenos
Aires, Argentina
OR
B) we received a notice of non-renewal of expiry date of Standby Letter of
Credit No. ____ issued by Premium Bank and substitute Letter of Credit or
security has not been provided
OR
C) we received a notice of non-renewal of the expiry date for the confirmation
of Standby Letter of Credit issued by Premium Bank and substitute Letter of
Credit or security has not been provided.

Additional Instructions: We request you to issue on our behalf and for our account
your Irrevocable Standby Credit in accordance with the
1. The letter of credit is assignable. above instructions (marked () where appropriate). This
2. Letter of credit to be confirmed by Premium Bank Hong Kong. Credit will be subject to the International Standby Practices
3. Incorporate the following clause in the Standby credit: (1998 Revision) Publication No. 590 of the International
Chamber of Commerce, Paris, France, insofar as they are
Each presentation honored by us shall immediately reduce the amount available to be drawn applicable.
hereunder by the amount of the payment made in respect of such presentation. In addition, the
amount available to be drawn under this letter of credit shall be reduced, automatically and
without amendment, on each date (each, an “Automatic Reduction Date”) set forth in the
following automatic reduction schedule by the amount (the “Reduction Amount”) set forth
opposite such date. However, such scheduled reduction amount(s) shall be reduced, or offset,
by the amount of any payment made by us against a drawing made on or prior to the relevant
automatic reduction date.

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AUTOMATIC REDUCTION SCHEDULE

AUTOMATIC REDUCTION AMOUNT
DATE
1 July 2XX2 USD100,000
1 January 2XX3 USD100,000
1 July 2XX3 USD100,000 James T. Chen JT Chen
1 January 2XX4 USD100,000
1 July 2XX4 USD100,000 ____
Name and signature of the Applicant

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