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The Institute of Financial Services is the professional body of ifs University College, a registered charity, incorporated by Royal Charter.

The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.











Qualification Specification (2013-2014)


ifs Level 4 Certificate for Documentary
Credit Specialists (CDCS

) 601/1159/8

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
CONTENTS

Page
1. Accreditation information 3
2. Aims of the CDCS

4
3. Learning outcomes for the CDCS

5
4. Objectives of the CDCS

6
5. Structure of the CDCS

6
6. Entry requirements 6
7. Methods of study 6
8. Assessment methodology of the CDCS

6
9. Grading 7
10. Assessment resits 7
11. Learning resources 7
12. Unit 1 Principles and Practices of Documentary Credit Transactions syllabus 8



The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.

1. Accreditation information

Qualification title ifs Level 4 Certificate for Documentary Credit
Specialists (CDCS

)
Ofqual qualification number 601 / 1159 / 8
Qualification level 4
European Qualifications
Framework (EQF) level
5
Regulation start date 29 August 2013
Operational start date 01 October 2013
Offered in England, Wales, Northern Ireland and internationally
Assessment available in English Yes
Assessment available in Welsh No
Assessment available in Irish No
Sector subject area 15.1 Accounting and Finance
Purpose D. Confirm occupational competence and / or licence
to practice
Sub-purpose D1. Confirm competence in an occupational role to the
standards required
Total credits 30
Minimum credits at / above level 30
Minimum learning hours 150
1

Maximum learning hours 300
Overall grading type Fail / Pass / Merit / Distinction
Assessment methods Multiple-choice examination
Qualification description

The Certificate for Documentary Credit Specialists
consists of two mandatory units.
Age ranges 1618; 19+







1
150 guided learning hours for those students resitting the qualification as part of their recertification.

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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
1.1 Table 1 QCF Level 4 level descriptors
DESCRIPTION
SUMMARY Achievement at Level 4 reflects the ability to identify and use relevant
understanding, methods and skills to address problems that are well
defined but complex and non-routine. It includes taking responsibility
for overall courses of action as well as exercising autonomy and
judgement within fairly broad parameters. It also reflects
understanding of different perspectives or approaches within an area
of study or work.
KNOWLEDGE AND
UNDERSTANDING
Use practical, theoretical or technical understanding to address
problems that are well defined but complex and non-routine.
Analyse, interpret and evaluate relevant information and ideas.
Be aware of the nature and scope of the area of study or work.
Have an informed awareness of different approaches within the area
of study or work.
APPLICATION AND
ACTION
Address problems that are complex and non-routine while normally
fairly well defined.
Identify, adapt and use appropriate methods and skills.
Initiate and use appropriate investigation to inform actions.
Review the effectiveness and appropriateness of methods, actions
and results.
AUTONOMY AND
ACCOUNTABILITY
Take responsibility for courses of action, including, where relevant,
responsibility for the work of others.
Exercise autonomy and judgement within broad but generally well-
defined parameters.

2. Aims of the CDCS


2.1 The aims of the CDCS

are to:
i. introduce students to documentary credit transactions by focusing on the types, products
and processes used in transactions;
ii. highlight the importance of rules, standards and guidelines for documentary credit
transactions and the products available to assist these transactions;
iii. enable students to gain an appreciation of the commonly used documents and trade terms;
iv. provide students with an understanding of the roles, obligations and relationships between
parties to documentary credits;
v. provide an understanding of the risks involved in documentary credit transactions and the
ability to manage those risks;
vi. familiarise students with how the rules and guidelines can be breached and the implications
of such breaches;
vii. provide students with the ability to manage documentary credit transactions and the
relationship between parties using the transactions;

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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
viii. provide students with an understanding of how to check the accuracy of documents to
enable their correct usage in documentary credit transactions;
ix. familiarise students with the links between theory and practice; and,
x. provide opportunities for students to develop the necessary skills and competencies to
move on to further study or employment.
3. Learning outcomes for the CDCS


3.1 Knowledge and understanding elements of the CDCS

will provide students with the


ability to critically analyse the:
i. environment of documentary credits, with a focus on the trade terms, products and
processes;
ii. roles and responsibilities of parties involved in documentary credits;
iii. current technical language, tools, methods and practices of documentary credits;
iv. risks involved in documentary credits and how to mitigate them; and,
v. rules and regulations involved in documentary credit products.
3.2 Subject-specific practical / professional elements of the CDCS

will provide students


with the skills to:
i. use appropriate tools and methods to check documentary credit documents;
ii. apply appropriate rules and guidelines to a variety of documentary credit transaction
scenarios;
iii. analyse documentary credit products and documents and reflect upon their desirability and
effectiveness in a variety of scenarios; and,
iv. understand the problems and risks that can arise in documentary credit transactions, and
how these problems can be controlled and / or mitigated.
3.3 Intellectual skills developed by the CDCS

will provide students with the ability to:


i. locate, extract and analyse information from different sources;
ii. apply higher-level cognitive skills of reflective practice, including analysis and evaluation;
iii. utilise problem-solving and decision-making skills; and,
iv. understand the interrelationships between the various subject disciplines and assimilate
these coherently to provide effective solutions.
3.4 Transferable skills and personal qualities developed by the CDCS

will provide students


with the ability to:

i. use appropriate information from a range of sources;
ii. learn independently and enhance skills of self-reflection, criticality and self-managed study;
and,
iii. structure and communicate ideas logically and coherently.


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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
4. Objectives of the CDCS


4.1 On completion of the CDCS

qualification, students will be able to:


i. demonstrate a level of expertise in documentary credits that is recognised worldwide;
ii. improve their knowledge and understanding of the complex issues associated with
documentary credit best practice;
iii. develop the skills to apply their knowledge in the workplace and to perform at a high level;
iv. use the professional designation CDCS

; and,
v. improve their career and promotion prospects.
4.2 As well as developing knowledge, the CDCS

assists in developing the ability to:


i. analyse and evaluate information;
ii. develop core personal skills including communication, numeracy and IT;
iii. formulate appropriate responses to resolve defined problems;
iv. convey information clearly, concisely and accurately;
v. structure information, options and recommendations in a clear and logical order;
vi. develop skills in examination technique;
vii. apply and build on previous learning and experience; and,
viii. develop critical thinking and critical evaluation.
5. Structure of the CDCS


5.1 CDCS

is made up of one mandatory unit which needs to be successfully completed in order


for the student to achieve the certificate:
i. Unit 1: Principles and Practices of Documentary Credit Transactions (30 credits) K / 505 /
5349
6. Entry requirements
6.1 There are no specified entry requirements. However, individuals need to be satisfied of their
ability to study in English at Level 4.
7. Methods of study
7.1 CDCS

is delivered via distance learning.


7.2 Materials and additional information are available by accessing my ifslearning.
8. Assessment methodology of the CDCS


8.1 The unit is assessed in a single examination lasting three hours. The examination paper is split
into two sections.

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8.2 Section A is assessed by 60 multiple-choice questions, with one mark available for each correct
answer.
8.3 Section B is assessed by:
i. 10 multiple-choice questions, with one mark available for each correct answer.
ii. three in-basket exercises comprising five multiple-choice questions linked to a set of
documents, with one mark available for each correct answer.
iii. three simulation document-checking exercises, candidates must identify five discrepancies
from a choice of 10. Each discrepancy correctly identified is worth one mark. A total of five
marks is available for each simulation exercise.
8.4 A total of 100 marks are available.
9. Grading
9.1 The qualification will be graded fail / pass / merit / distinction:
Grade Raw mark
Fail 069
Pass 7079
Merit 8094
Distinction 95100
9.2 To achieve an overall pass, students must achieve a mark of 70% overall (and 60% for Section
B).
9.3 There is no section pass mark for section A.
9.4 Credit cannot be claimed for gaining 60% in section B but failing to gain 70% overall, only
overall achievement is graded.
10. Assessment resits
10.1 Students are allowed to resit the unit in accordance with the published ifs policies.
11. Learning resources
11.1 Students will be provided with the following learning resources:
i. online access via my ifslearning to learning materials and to ifs KnowledgeBank (virtual
library);
ii. unit syllabuses;
iii. specimen paper; and,
iv. student forum.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
12. Unit 1 Principles and Practices of Documentary Credit
Transactions
12.1 Unit 1 specification

Unit title Principles and Practices of Documentary Credit Transactions
Ofqual unit reference number K / 505 / 5349
Unit level 4
Learning hours 300
Unit credit value 30
Unit aims i. This unit introduces students to documentary credit
transactions by focusing on the types, products and
processes used in transactions.
ii. It highlights the importance of rules, standards and
guidelines for documentary credit transactions and the
products available to assist these transactions.
iii. Students will gain an appreciation of the commonly used
documents and trade terms.
iv. Students will gain an understanding of the roles, obligations
and relationships between parties to documentary credits.
v. Students will gain an understanding of the risks involved in
documentary credit transactions and be able to manage
those risks.
vi. Students will understand how the rules and guidelines can
be breached and the implications of such breaches.
vii. Students will be able to manage documentary credit
transactions and the relationship between parties to the
transactions.
viii. Students will understand how to check the accuracy of
documents to enable their correct usage in documentary
credit transactions.

12.2 Unit 1 learning outcomes / assessment criteria

Learning outcome (LO)
The learner when awarded credit for this
unit will:
Assessment criteria (AC)
Assessment of the LOs will require a learner to demonstrate that
they can:
1. Understand the main types,
characteristics and uses of
documentary credits.
1.1 Explain what is meant by the term documentary credit.
1.2 Compare the main types of documentary credit.
1.3 Compare the main characteristics of documentary credits.
1.4 Explain how the main types of documentary credit are used.
1.5 Identify the key features of documents used in documentary
credit transactions.
2. Know the industry rules, standards,
guidelines and trade terms that govern
the delivery of documentary credit
2.1 Describe the rationale for the introduction of uniform rules to
govern documentary transactions.
2.2 Identify the rules that govern documentary credit transactions.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
Learning outcome (LO)
The learner when awarded credit for this
unit will:
Assessment criteria (AC)
Assessment of the LOs will require a learner to demonstrate that
they can:
transactions. 2.3 Explain the UCP and eUCP rules that relate to the presentation
and examination of documents in documentary credit
transactions.
3. Understand the ways in which
documentary credit transaction rules
and regulation can be breached and
the implications of such breaches.
3.1 Explain how measures to prevent money laundering can affect
documentary credit transactions.
3.2 Explain the impact of measures to prevent terrorist financing on
documentary credit transactions.
3.3 Identify the ways in which ICC rules relating to documentary
credit transactions can be breached and the implications of such
breaches.
4. Understand the roles and obligations
of the parties to documentary credit
transactions and the relationships
between them.
4.1 Describe the relationships between the parties involved in
documentary credit transactions.
4.2 Identify the roles and obligations of the parties involved in
documentary credit transactions,
4.3 Explain how the provisions of UCP affect the relationship, roles
and obligations of the parties to documentary credit transactions.
5. Understand the types and methods of
payment and credit used in
documentary credit transactions.
5.1 Compare the basic methods of payment and credit used in
documentary credit transactions.
5.2 Identify when a type of payment or credit is preferred.
5.3 Explain the concept of autonomy for documentary credits.
6. Understand the types of transport,
commercial and financial documents
used in documentary credit
transactions and their requirements
under ICC rules.
6.1 Explain the key transport documents used in documentary credit
transactions.
6.2 Explain the key commercial and financial documents used in
documentary credit transactions.
6.3 Explain the requirements of documents used in documentary
credit transactions as governed by ICC rules.
7. Understand the processes and
challenges involved in documentary
credit transactions.
7.1 Identify the documentary credit issuance and amendment
process.
7.2 Explain the requirements of merchants and countries of export
and import in the documentary credit process.
7.3 Explain the operational procedures relating to examining
documents, culminating in their settlement or rejection.
7.4 Explain the problems faced by banks in transactions involving
bank-to-bank reimbursements under documentary credits.
7.5 Explain the problems that arise in practice in relation to
documentary credits, documents and the rules.
7.6 Explain discrepant documents.
8. Understand and manage the risks
involved in documentary credit
transactions.

8.1 Identify the various operational risks involved in documentary
credit transactions and the impact of these on the parties
involved.
8.2 Explain how the risks involved in documentary credit transactions
may be controlled and mitigated.

The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
Learning outcome (LO)
The learner when awarded credit for this
unit will:
Assessment criteria (AC)
Assessment of the LOs will require a learner to demonstrate that
they can:
9. Understand the related products used
in documentary credit transactions.
9.1 Identify the related products available for documentary credit
transactions.
9.2 Explain why related products are used in documentary credit
transactions.
9.3 Identify the risks and consequences of using related products in
documentary credit transactions.
10. Be able to manage the transport,
commercial and financial documents
used in documentary credit
transactions.
10.1 Apply appropriate ICC rules and trade terms that govern
documentary credit transactions.
10.2 Manage the relationships between parties using documentary
credit transactions.
10.3 Process the methods of payment and credit used in documentary
credit transactions.
10.4 Resolve any challenges involved in documentary credit
transactions.
10.5 Manage the risks involved in documentary credit transactions.
10.6 Process any related products used in documentary credit
transactions.
10.7 Check accuracy of documents to enable their correct usage in
documentary credit transactions.

12.3 Unit 1 assessment methodology

Unit 1 will be assessed by 70 standalone multiple-choice questions; three in-basket exercises each with
five attached multiple-choice questions and three simulation exercises where five discrepancies need to
be identified from a choice of 10.

12.4 Unit 1 syllabus overview

Learning Outcome Syllabus
1. Understand the main types,
characteristics and uses of
documentary credits.

Understanding of the term documentary credit
A basic documentary credit transaction (including generic flow
chart of this process)
Types of documentary credit
Primary characteristics of documentary credits
Secondary characteristics of documentary credits:
- Revolving credits
- Instalment
- Advance payments
- Transferable
- Evergreen
- Clean

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Learning Outcome Syllabus
- Direct pay
Categorisation of documentary credit by type and characteristic
Commercial documentary credits
Standby letters of credit
2. Know the industry rules,
standards, guidelines and
trade terms that govern the
delivery of documentary
credit transactions.

Incoterms 2010


UCP 600 Uniform Customs and Practice for Documentary
Credits
ISP98 International Standby Practices
URR 725 Uniform Rules for bank-to-bank reimbursement
under documentary credits
ICC decision on original documents (Appendix to ICC
publication 645 ISBP)
ISBP 745
eUCP
3. Understand the ways in
which documentary credit
transaction rules and
regulations can be breached
and the implications of such
breaches.
Money Laundering
Sanctions
Terrorist Financing
4. Understand the roles and
obligations of the parties to
documentary credit
transactions and the
relationships between them.


Parties to documentary credits roles and responsibilities:
- Issuing bank
- Beneficiary
- Applicant
- Non-bank issuers
- Confirming bank
- Advising bank
- Negotiating bank
- Paying bank
- Accepting bank
- Reimbursing bank
- Transferring bank
- Nominated bank
- Presenting bank
Banks roles and obligations:
- Issuing bank
- Confirming bank

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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
Learning Outcome Syllabus
- Advising bank
- Negotiating bank
- Paying bank
- Accepting bank
- Reimbursing bank
- Transferring bank
- Nominated bank
- Presenting bank
- Beneficiary
Relationship of parties in respect of payment of conforming
documents and non-payment of non-conforming documents
Roles and responsibilities in reimbursement
5. Understand the types and
methods of payment and
credit used in documentary
credit transactions.










Types of payment:
- Sight
- Deferred
- Negotiation
- Acceptance
Transmission of proceeds
Types of credit
With and without recourse
The autonomy of a documentary credit as a payment
mechanism
6. Understand the types of
transport, commercial and
financial documents used in
documentary credit
transactions and their
requirements under ICC
rules.


Characteristics, processing and rules that apply to transport
documents:
- Bill of Lading
- Charter Party Bill of Lading
- Non-negotiable Seaway Bill
- Multimodal Transport Document
- Air Transport Document
- Road, Rail or Inland Waterway Transport Document
- Forwarders Cargo receipt, Mates Receipt and
Consolidators Receipt
- Post Receipt or Certificate of Posting
- Courier or Expedited Delivery Service Document
Financial and Commercial documents:
- Draft / bill of exchange

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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
Learning Outcome Syllabus
- Commercial Invoice
- Insurance Document
- Weight Certificate
- Certificate of Origin
- Packing Lists
- Inspection Certificate
Documents for official purposes and checking mechanisms
7. Understand the processes
and challenges involved in
documentary credit
transactions.

Processes and activities associated with:
- Sales agreement / contract of sale
- Issue
- Pre-advise
- Advise
- Confirm
- Amend
- Transfer
- Present
- Examine
- Pay / Reject
- Claim
- Reimburse Funds
- Cancel
Presentation, Examination and Settlement / Rejection
Identifying and handling discrepant documents
Electronic presentations
Problems that can arise during the documentary credit
transaction process
8. Understand and manage the
risks involved in
documentary credit
transactions.

Types of Risk
- Operational / UCP 600
- Credit
- Foreign Exchange
- Fraud
- Legal
- Political
Other risks / considerations
- Money Laundering
- Sanctions
- Terrorist Financing

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The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.
Learning Outcome Syllabus
- Credit Risk Assessment / Management
Risks to the parties to documentary credits:
- applicant
- issuing bank
- beneficiary
- advising bank
- nominated bank
- confirming bank
- reimbursing bank
How risks can be controlled
9. Understand the related
products used in
documentary credit
transactions.

Letter of Indemnity
Air Way Release
Steamship Guarantee
Assignment of Proceeds
Participation and Syndication
Refinance Credits
Reimbursement undertaking
10. Be able to manage the
transport, commercial and
financial documents used in
documentary credit
transactions.
Apply and analyse the transport, commercial and financial
documents used in documentary credit transactions in order to
recommend appropriate courses of action and manage
documentary credit transactions.



The Institute of Financial Services is the professional body of ifs University College, a registered charity incorporated by Royal Charter.
15
The International Chamber of Commerce (ICC) is the largest, most representative business organization in the world.


















About the Institute of Financial Services

The Institute of Financial Services supports and promotes professionalism in the regulated advice
sector and the wider financial services industry. It does so through the provision of qualifications,
continuing professional development services and through the dissemination of best practice. The
Institute is the professional body of ifs University College, a registered charity, incorporated by Royal
Charter and is recognised as an awarding organisation by Ofqual.


Institute of Financial Services
ifs House 49 Burgate Lane
Canterbury
Kent CT1 2XJ

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E: customerservices@ifslearning.ac.uk
W: www.iofs.org.uk



About the International Chamber of Commerce

The International Chamber of Commerce is the largest representative business organisation in the
world. The ICC has hundreds of thousands of member companies across +130 countries covering
interests spanning across every sector of private enterprise. The ICC Banking Commission is the
largest commission within the ICC and is a leading ruling body for the banking industry globally, gaining
a reputation for being the most authoritative voice in the field of trade finance.


International Chamber of Commerce
38 cours Albert 1er
75008 Paris,
France

T: +33 (0) 1 49 53 28 28
E: icc@iccwbo.org
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