CDCS Prelims only on UCP 600

You as a Beneficiary have received a credit evidencing in additional condition “Applicant shall be bound by and liable to indemnify the banks against all obligations and responsibilities imposed by foreign laws and usage does not apply”. Can a credit be issued in this manner?

• Yes

• No

A documentary credit is available with ABC Bank, Hong Kong by negotiation at 30 days after shipment date. Which of the following actions by ABC Bank, Hong Kong will constitute negotiation, when credit compliant documents are presented?

a) Forward documents to issuing bank for payment at maturity date

b) Pay the beneficiary and forward documents to issuing bank

c) Agree to pay the beneficiary, once the documents are accepted by the issuing bank and forward the documents to issuing bank

• b only

• c only

• b & c

• a & c

UCP 600 considers Branches of bank in different countries as another bank

• Yes

• No

If a documentary credit requires presentation of a “Phytosanitary Certificate issued by a competent authority”. The phytosanitary certificate must be issued by

• Government authority

• Department of Agriculture

• Anyone except the beneficiary

LC states it is available for one month but does not give expiry date. How should the Beneficiary interpret the expiry date

• One month from date of advising

• One month from the date of issue

• One month from the date of invoice

• Any of the above

LC states shipment to be made during the middle of the month. How should this period be interpreted

• 10th to 20th day of month

• 11th to 20th day of month

• 10th to 21st day of month

• 11th to 21st day of month

LC states that shipment to be made on or about 27 September. Which of the following shipment dates would be acceptable?

• 20 Sep

• 2 Oct

• 3 Oct

If a documentary credit requires that shipment to be effected “immediately” upon receipt of L/C. LC issue date is 10^th January and Expiry Date is 20^th January. When the shipment should be effected under the L/C

• 10 to 13 Jan

• 10 to 15 Jan

• 11 to 17 Jan

• Any time before the expiry date of the LC

We issue a credit payable at sight calling for shipment of “Spare Parts as per Sales Contract No.5643”. Upon receipt of documents, applicant requests us to check the model nos in the packing list with the sales contract. Model numbers differ however invoice clearly states ‘Spare Parts as per Sales Contract No. 5643’. Otherwise the documents are compliant. In terms of  UCP we 

• Should pay at sight

• Refuse the documents

An applicant of the credit requests the ZBO Bank to insert the following clause in goods description “Spare parts as per Proforma Invoice No.123 Rev 1 which is an integral part of this credit”. Is this permissible? 

• Yes

• No